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Faculty & Research

David Thesmar

  • Professor of Finance

David Thesmar is a Professor of Finance at the MIT Sloan School of Management.

He is an expert in corporate finance, financial intermediation, entrepreneurship, and behavioral economics. Recently, he has studied the impact of financing constraints on the real economy. Thesmar also investigates risk management and systemic risk in banking. He has also researched firm organization and non-rational decision making on corporate strategies. His work makes systematic use of large datasets but emphasizes a parsimonious modelling approach to address economic questions.

A native of France, Thesmar has been involved in policy advising both at the French and European level. He was a member of the council of economic advisors to the French prime minister from 2007 to 2013, and is currently a scientific adviser to the European Systemic Risk Board. An active participant in the public debate, Thesmar is the author of several books, and a regular columnist for the French daily newspaper Les Echos. He has also held numerous consulting positions in the private sector, with a focus on big data related topics.

Thesmar hold a BA in Physics and Economics from École Polytechnique, and a PhD from Paris School of Economics.

Current Research Focus:   Thesmar’s research focuses on banking, asset management, behavioral economics, and the determinants of firm and industry productivity. Recently, he has studied the European interbank market during the past financial crises. He also works on quantifying the effects of financing constraints on investment and aggregate productivity.

  • "Banking Integration and House Price Comovement." Landier, Augustin, David Alexandre Sraer and David Thesmar. Journal of Financial Economics. Forthcoming.
  • "Sovereign Crises and Bank Financing: Evidence from the European Repo Market." Boissel, Charles, Francois Derrien, Evren Ors, and David Thesmar. Journal of Financial Economics. Forthcoming.
  • "Wholesale Funding Dry-Ups." Perignon, Christophe, David Thesmar, and Guillaume Vuillemey. Journal of Finance. Forthcoming.
  • "Housing Collateral and Entrepreneurship." Schmalz, Martin C., David Alexandre Sraer and David Thesmar. Journal of Finance Vol. 72, No. 1 (2017): 99-132.
  • "The Excess Returns of 'Quality' Stocks: A Behavioral Anomaly." Bouchaud, Jean-Philippe, Stefano Ciliberti, Augustin Landier, Guillaume Simon, and David Thesmar. Journal of Investment Strategies Vol. 5, No. 3 (2016): 51-61.
  • "The Sovereign-Bank Diabolic Loop and ESBies." Brunnermeier, Markus K., Luis Garicano, Philip R. Lane, Marco Pagano, Ricardo Reis, Tano Santos, David Thesmar, Stijn Van Nieuwerburgh, and Dimitri Vayanos. American Economic Review Vol. 106, No. 5 (2016): 508-512.
  • "Does Unemployment Insurance Change the Selection into Entrepreneurship?" Hombert, Johan, Antoinette Schoar, David Sraer and David Thesmar. In NBER book on Measuring Entrepreneurial Businesses, edited by Antoinette Schoar, Erik Hurst, Javier Miranda, John Haltiwanger, 1-2. Cambridge, MA: NBER, 2016.
  • "The WACC Fallacy: The Real Effects of Using a Unique Discount Rate." Kruger, Philipp, Augustin Landier, and David Thesmar. Journal of Finance Vol. 70, No. 3 (2015): 1253-1285.
  • "Vulnerable Banks." Greenwood, Robin, Augustin Landier and David Thesmard. Journal of Financial Economics Vol. 115, No. 3 (2015): 471-485.
  • "Instabilities in Large Economies: Aggregate Volatility without Idiosyncratic Shock." Bonart, Julius, Jean-Philippe Bouchaud, Augustin Landier and David Thesmar. Journal of Statistical Mechanics Vol. 2014, (2014): 1-2.
  • "Overcoming Limits of Arbitrage: Theory and Evidence." Homberta, Johan and David Thesmar. Journal of Financial Economics Vol. 111, No. 1 (2014): 26-44.
  • "Regulating Systemic Risk Through Transparency: Tradeoffs in Making the Data Public." Landier, Augustin and David Thesmar. In Risk Topography: Systemic Risk and Macro Modeling , edited by Arvind Krishnamurthy, Markus Brunnermeier, 1-2. Cambridge, MA: NBER, 2014.
  • Dix idées qui coulent la France. Thesmar, David and Augustin Landier. Paris, France: Flammarion, 2013.
  • "Social Networks in the Boardroom." Kramarz, Francis and David Thesmar. Journal of the European Economic Association Vol. 11, No. 4 (2013): 780-807.
  • "Investor Horizon and Corporate Policy." Derrien, François, Ambrus Kecskés and David Thesmar. Journal of Financial and Quantitative Analysis Vol. 48, No. 6 (2013): 1755-1780.
  • "Bottom-Up Corporate Governance." Landier, Augustin, Julien Sauvagnat, David Sraer and David Thesmar. Review of Finance Vol. 17, No. 1 (2013): 161-201.
  • "The Collateral Channel: How Real Estate Shocks Affect Corporate Investment." Chaney, Thomas, David Sraer and David Thesmar. American Economic Review Vol. 102, No. 6 (2012): 2381-2409.
  • "Individual Investors and Volatility." Fourcault, Thierry, David Sraer and David Thesmar. Journal of Finance Vol. 66, No. 4 (2011): 1369-1406.
  • "Stock Price Fragility." Greenwood, Robin and David Thesmar. Journal of Financial Economics Vol. 102, No. 3 (2011): 471-490.
  • "Growth LBOs." Boucly, Quentin, David Sraer and David Thesmar. Journal of Financial Economics Vol. 102, No. 2 (2011): 432-453.
  • "Contrasting Trends in Firm Volatility." Thesmar, David and Mathias Thoenig. American Economic Journal: Macroeconomics Vol. 3, No. 4 (2011): 143-180.
  • La société translucide: pour en finir avec le mythe de l'Etat bienveillant. Landier, Augustin and David Thesmar. Paris, France: Fayard, 2010.
  • "Credit Constraints and Entrepreneurship: Evidence From the French Loan Guarantee Program." Lelarge, Claire, David Sraer and David Thesmar. In International Differences in Entrepreneurship, edited by Antoinette Schoar, Josh Lerner, 1-2. Cambridge, MA: NBER, 2010.
  • "Financial Risk Management: Why Did Independence Fail?" Landier, Augustin, David Sraer and David Thesmar. American Economic Review Vol. 99, No. 2 (2009): 454-458.
  • "Optimal Dissent in Organizations." Landier, Augustin, David Sraer and David Thesmar. Review of Economic Studies Vol. 76, No. 2 (2009): 761-794.
  • "Financial Contracting with Optimistic Entrepreneurs: Theory and Evidence." Landier, Augustin and David Thesmar. Review of Financial Studies Vol. 22, No. 1 (2009): 117-150.
  • "Investigating Capitalism-Aversion." Landier, Augustin, David Thesmar and Mathias Thoenig. Economic Policy Vol. 55, (2008): 1-2.
  • "From Flexibility to Insecurity: How Outsourcing Amplifies Firm Level Uncertainty." Thesmar, David and Mathias Thoenig. Journal of the European Economic Association Vol. 5, No. 6 (2007): 1161-1202.
  • "Performance and Behavior of Family Firms: Evidence From the French Stock Market." Sraer, David and David Thesmar. Journal of the European Economic Association Vol. 5, No. 4 (2007): 709-751.
  • "Banking Deregulation and Industry Structure: Evidence from the 1985 French Banking Act." Bertrand, Marianne, Antoinette Schoar and David Thesmar. The Journal of Finance Vol. 62, No. 2 (2007): 597-628.
  • Le grand méchant marché: Décryptage d'un fantasme français. Landier, Augustin and David Thersmar. Paris, France: Flammarion, 2007.
  • "On the Relation between Organisational Practices and New Technologies: The Role of (Time Based) Competition." Askenazy, Philippe, David Thesmar and Mathias Thoenig. The Economic Journal Vol. 116, No. 508 (2006): 128-154.
  • "Changes in the Functional Structure of Firms and the Demand for Skill." Maurin, Eric and David Thesmar. Journal of Labor Economics Vol. 22, No. 3 (2004): 639-664.
  • "Evaluation d’une politique éducative: la montée de la scolarisation en France 1982-1993." Thesmar, David and T. Magnac. Annales d’Economie et de Statistiques (2002): 1-2.
  • "Identifying Dynamic Discrete Choice Models." Thesmar, David and Thierry Magnac. Econometrica Vol. 70, No. 2 (2002): 801-816.
  • "Creative Destruction and Organization Change." Thesmar, David and Mathias Thoenig. The Quarterly Journal of Economics Vol. 115, No. 4 (2000): 1201-1237.
  • "Choisir son Organisation dans un Environnement Instable : une Perspective Macro-économique." Thesmar, David and Mathias Thoenig. Revue Economique (1999): 1-2.