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## Doubling Down on Debt: Limited Liability as a Financial Friction

We investigate how a combination of limited liability and preexisting debt distort firms’ investment and equity payout decisions.

## Eigenvalues and Eigenvectors of Tau Matrices with Applications to Markov Processes and Economics

In the context of matrix displacement decomposition, Bozzo and Di Fiore introduced the so-called $\tau_{\epsilon,\phi}$ algebra, a generalization of the more known $\tau$ algebra originally proposed by Bini and Capovani. We study the properties of …

## A Model of Product Awareness and Industry Life Cycles

This paper proposes a model where consumption bundle heterogeneity is derived from a network of connections between consumers and firms. In it, consumers slowly become 'aware' of differentiated products, adding connections and expanding their choice sets.