About

Lars-Alexander Kuehn is a Professor of Finance at the Tepper School of Business at Carnegie Mellon University. The page provides contact information including his email (kuehn@cmu.edu) and his affiliation with the Tepper School of Business. The content emphasizes the school's focus on business, technology, and analytics, as well as its strategic plan to lead at the intersection of these fields. However, the page does not include specific details about Professor Kuehn's research focus, background, or key contributions.

Research topics

• Artificial Intelligence
• Economics
• Sociology
• Computer Science
• Business
• Financial economics
• Monetary economics
• Econometrics
• Psychology

Selected publications

• CDX Markets, Time-Varying Fear, and Corporate Leverage

  SSRN Electronic Journal · 2026-01-01

  preprintOpen accessSenior author
  PublisherDOI

• Leverage Dynamics and Learning about Economic Crises

  SSRN Electronic Journal · 2024 · 4 citations

  Senior authorCorresponding
  • Computer Science
  • Artificial Intelligence
  • Economics
  PublisherDOI

• Learning about the consumption risk exposure of firms

  Journal of Financial Economics · 2023-11-27 · 2 citations

  articleOpen accessCorresponding

  We structurally estimate an investment-based asset pricing model, in which firms' exposure to macroeconomic risk is unknown. Bayesian beliefs about this parameter are updated from firms' and industry peers' comovement between their productivity and consumption growth. The model implies that discount rates rise endogenously with the perceived risk exposure of firms, thereby depressing investment and valuation ratios. We test these predictions in the data and find strong support for them. We also confirm that cross-sectional learning from peers is crucial and that alternative Bayesian risk estimates, which ignore peer observations, do not predict firm variables.

  PublisherDOI

• Persistent Crises and Levered Asset Prices

  Review of Financial Studies · 2022 · 6 citations

  1st authorCorresponding
  • Economics
  • Econometrics
  • Monetary economics

  Abstract This paper shows that standard disaster risk models are inconsistent with movements in stock market volatility and credit spreads during disasters. We resolve this shortcoming by incorporating persistent macroeconomic crises into a structural credit risk model. The model successfully captures the joint dynamics of aggregate consumption, financial leverage, and asset market risks, both unconditionally and during crises. Leverage strongly amplifies fundamental shocks by continuing to rise while crises endure. We structurally estimate the model and show that it replicates the firm-level implied volatility curve and its cross-sectional relation with observable proxies of default risk.

  PublisherDOI

• Learning about the Consumption Risk Exposure of Firms

  SSRN Electronic Journal · 2021 · 3 citations

  • Sociology
  • Business
  • Sociology
  PublisherDOI

• Persistent Crises and Levered Asset Prices

  SSRN Electronic Journal · 2020-01-01 · 1 citations

  articleOpen access1st authorCorresponding
  PublisherDOI

• Replication data for: Endogenous Disasters

  ICPSR Data Holdings · 2018-01-01

  datasetOpen accessSenior author

  Market economies are intrinsically unstable. The standard search model of equilibrium unemployment, once solved accurately with a globally nonlinear algorithm, gives rise endogenously to rare disasters. Intuitively, in the presence of cumulatively large negative shocks, inertial wages remain relatively high, and reduce profits. The marginal costs of hiring run into downward rigidity, which stems from the trading externality of the matching process, and fail to decline relative to profits. Inertial wages and rigid hiring costs combine to stifle job creation flows, depressing the economy into disasters. The disaster dynamics are robust to extensions to home production, capital accumulation, and recursive utility.

  PublisherDOI

• Endogenous Disasters

  American Economic Review · 2018-07-25 · 109 citations

  articleSenior author

  Market economies are intrinsically unstable. The standard search model of equilibrium unemployment, once solved accurately with a globally nonlinear algorithm, gives rise endogenously to rare disasters. Intuitively, in the presence of cumulatively large negative shocks, inertial wages remain relatively high, and reduce profits. The marginal costs of hiring run into downward rigidity, which stems from the trading externality of the matching process, and fail to decline relative to profits. Inertial wages and rigid hiring costs combine to stifle job creation flows, depressing the economy into disasters. The disaster dynamics are robust to extensions to home production, capital accumulation, and recursive utility. (JEL E22, E23, E24, E32, J41, J63, N12)

  PublisherDOI

• A Labor Capital Asset Pricing Model

  The Journal of Finance · 2017-03-19 · 116 citations

  articleOpen access1st authorCorresponding

  ABSTRACT We show that labor search frictions are an important determinant of the cross‐section of equity returns. Empirically, we find that firms with low loadings on labor market tightness outperform firms with high loadings by 6% annually. We propose a partial equilibrium labor market model in which heterogeneous firms make dynamic employment decisions under labor search frictions. In the model, loadings on labor market tightness proxy for priced time‐variation in the efficiency of the aggregate matching technology. Firms with low loadings are more exposed to adverse matching efficiency shocks and require higher expected stock returns.

  PublisherOA PDFDOI

• Endogenous Economic Disasters and Asset Prices

  RePEc: Research Papers in Economics · 2014-01-01 · 7 citations

  preprint

  Frictions in the labor market are important for understanding the equity premium in the financial market. We embed the Diamond-Mortensen-Pissarides search framework into a dynamic stochastic general equilibrium model with recursive preferences. The model produces realistic equity premium and stock market volatility, as well as a low and stable interest rate. The equity premium is countercyclical, and forecastable with labor market tightness, a pattern we confirm in the data. Intriguingly, three key ingredients (small profits, large job flows, and matching frictions) in the model combine to give rise endogenously to rare disasters a la Rietz (1988) and Barro (2006).

  Publisher

Frequent coauthors

• Nicolas Petrosky-Nadeau

  Federal Reserve Bank of San Francisco

  24 shared

• Lu Zhang

  University of Cambridge

  19 shared

• Harjoat Singh Bhamra

  9 shared

• Jessie Jiaxu Wang

  Federal Reserve

  9 shared

• Ilya A. Strebulaev

  National Bureau of Economic Research

  9 shared

• Lu Zhang

  Obstetrics and Gynecology Hospital of Fudan University

  5 shared

• Mikhail Simutin

  3 shared

• Kai Li

  Institute of Quantitative and Technical Economics

  3 shared