Briana Chang joined the Wisconsin School of Business as assistant professor in the Department of Finance, Investments, and Banking. She recently completed her Ph.D. in economics at Northwestern. In her dissertation, she studies the determinants of liquidity and trading dynamics in asset markets. Her works focus on how market frictions affect the reallocation in factor markets and aggregate performance.
Her primary research interests are in market microstructure, information economics, search theory, and the impact of market frictions on asset trading and firms’ investment dynamics.
Selected Submitted Journal Articles
Chang, B. (2012). Adverse Selection and Liquidity Distortion.
This paper contributes a unified framework of market illiquidity by formalizing liquidity as two dimensions: price and speed. It analyzes how asymmetric information on the asset quality as well as on sellers' trading motives leads to distinct notions of illiquidity. It shows how limited market participation, trading delays, and possibly fire-sales arise jointly as market outcomes. The model therefore endogenously generates and separately identifies the effects of adverse selection on trading price and the trading volume.
NBER Summer Institute 2012, Workshop on Macro Perspectives ( 2012 ) A Search Theory of Sectoral Reallocation
2012 Econometric Society North American Summer Meeting ( 1 ) A Search Theory of Sectoral Reallocation
2012 Society of Economic Dynamics Annual Meeting ( 1 ) Adverse Selection and Liquidity Distortion