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Itay Goldstein

Economics & Finance

Itay Goldstein

Joel S. Ehrenkranz Family Professor of Finance, The Wharton School, University of Pennsylvania

Itay Goldstein is the Joel S. Ehrenkranz Family Professor of Finance at the Wharton School of the University of Pennsylvania and Chair of the Finance Department. He is also Director of the Wharton Initiative on Financial Policy and Regulation and Executive Editor of the Review of Financial Studies.

Professor Goldstein’s research focuses on corporate finance, financial fragility and crises, financial institutions, and the feedback effects between financial markets and the real economy, with particular attention to how prices, investor behavior, and financial intermediaries shape firm outcomes and macroeconomic stability.

He has written extensively on topics including information dissemination in financial markets, asset price non-fundamentals, corporate takeovers, mutual fund flows and business cycles, and the transmission of financial crises through portfolio diversification, banking systems, and exchange rates.

His work has been published in leading academic journals such as the American Economic Review, the Journal of Finance, the Journal of Financial Economics, and the Review of Financial Studies, and has influenced both academic research and policy discussions on financial regulation and crisis management.

Doctoral Dissertation: Models of Self-Fulfilling Financial Crises.

Courses Taught: Financial Economics Under Imcomplete Information; International Banking; Corporate Finance; Advanced Corporate Finance; Corporate Finance & Financial Institutions; *Received the 2022 Provost’s Award for Distinguished PhD Teaching and Mentoring.

Education
Ph.D. in Economics, Tel-Aviv University · M.A. in Economics, Tel-Aviv University · B.A. in Economics & Accounting, Tel-Aviv University
Topics
Financial Economics · Financial Fragility & Crises · Financial Contagion · Corporate Finance · Financial Institutions · Feedback Effects Between Financial Markets & The Real Economy

In the Encyclopedia1

Selected publications47

  1. 2025Itay Goldstein, Yan Xiong, and Liyan Yang, “Information Sharing in Financial Markets,” Journal of Financial Economics, vol. 163, article 103967, January 2025
  2. 2024Itay Goldstein, Deeksha Gupta, and Ruslan Sverchkov, “Utility Tokens as a Commitment to Competition,” Journal of Finance, vol. 79(6), pp. 4197-4246, December 2024
  3. 2024Qi Chen, Itay Goldstein, Zeqiong Huang, and Rahul Vashishtha, “Liquidity Transformation and Fragility in the US Banking Sector,” Journal of Finance, vol. 79(6), pp. 3985-4036, December 2024
  4. 2024Itay Goldstein, Alexandr Kopytov, Lin Shen, and Haotian Xiang, “Bank Heterogeneity and Financial Stability,” Journal of Financial Economics, vol. 162, article 103934, December 2024
  5. 2024Richard Friberg, Itay Goldstein, and Kristine Hankins, “Corporate Responses to Stock Price Fragility,” Journal of Financial Economics, vol. 153, article 103795, March 2024
  6. 2023Itay Goldstein, Shijie Yang, and Luo Zuo, “The Real Effects of Modern Information Technologies: Evidence from the EDGAR Implementation,” Journal of Accounting Research, vol. 61(5), pp. 1699-1733, December 2023
  7. 2023Eduardo Davila and Itay Goldstein, “Optimal Deposit Insurance,” Journal of Political Economy, vol. 131(7), pp. 1676-1730, July 2023
  8. 2022Qi Chen, Itay Goldstein, Zeqiong Huang, and Rahul Vashishtha, “Bank Transparency and Deposit Flows,” Journal of Financial Economics, vol. 146(2), pp. 475-501, November 2022 4
  9. 2022Itay Goldstein and Liyan Yang, “Commodity Financialization and Information Transmission,” Journal of Finance, vol. 77(5), pp. 2613-2667, October 2022
  10. 2021Antonio Falato, Itay Goldstein, and Ali Hortacsu, “Financial Fragility in the COVID19 Crisis: The Case of Investment Funds in Corporate Bond Markets,” Journal of Monetary Economics, vol. 123, pp. 35-52, October 2021
  11. 2021Azi Ben-Rephael, Jaewon Choi, and Itay Goldstein, “Mutual Fund Flows and Fluctuations in Credit and Business Cycles,” Journal of Financial Economics, vol. 139(1), pp. 84-108, January 2021
  12. 2020Itay Goldstein and Chong Huang, “Credit Rating Inflation and Firms’ Investments,” Journal of Finance, vol. 75(6), pp. 2929-2972, December 2020
  13. 2020Indraneel Chakraborty, Itay Goldstein, and Andrew MacKinlay, “Monetary Stimulus and Bank Lending,” Journal of Financial Economics, vol. 136(1), pp. 189-218, April 2020
  14. 2019Itay Goldstein and Liyan Yang, “Good Disclosure, Bad Disclosure,” Journal of Financial Economics, vol. 131(1), pp. 118-138, January 2019
  15. 2018Franklin Allen, Elena Carletti, Itay Goldstein and Agnese Leonello, “Government Guarantees and Financial Stability,” Journal of Economic Theory, vol. 177, pp. 518- 557, September 2018
  16. 2018Itay Goldstein and Yaron Leitner, “Stress Tests and Information Disclosure,” Journal of Economic Theory, vol. 177, pp. 34-69, September 2018
  17. 2018Indraneel Chakraborty, Itay Goldstein and Andrew MacKinlay, “Housing Price Booms and Crowding-Out Effects in Bank Lending,” Review of Financial Studies, vol. 31(7), pp. 2806-2853, July 2018
  18. 2017Itay Goldstein, Hao Jiang and David Ng, “Investor Flows and Fragility in Corporate Bond Funds,” Journal of Financial Economics, vol. 126(3), pp. 592-613, December 2017
  19. 2017James Dow, Itay Goldstein and Alexander Guembel, “Incentives for Information Production in Markets where Prices Affect Real Investment,” Journal of the European Economic Association, vol. 15(4), pp. 877-909, August 2017
  20. 2016Douglas D. Evanoff Best Paper Award, Chicago Financial Institutions Conference, 2016
  21. 2015MIT Asia Conference in Accounting Best Paper Award, Runner-Up, 2015
  22. 2015Finalist for Cavalcade Best Paper in Corporate Finance in honor of Jerome A. Chazen, SFS Cavalcade 2015
  23. 2015Alex Edmans, Itay Goldstein and Wei Jiang, “Feedback Effects, Asymmetric Trading, and the Limits to Arbitrage,” American Economic Review, vol. 105(12), pp. 3766- 3797, December 2015
  24. 2015Philip Bond and Itay Goldstein, “Government Intervention and Information Aggregation by Prices,” Journal of Finance, vol. 70(6), pp. 2777-2811, December 2015
  25. 2015Itay Goldstein and Liyan Yang, “Information Diversity and Complementarities in Trading and Information Acquisition,” Journal of Finance, vol. 70(4), pp. 1723-1765, August 2015
  26. 2014Itay Goldstein, Yan Li and Liyan Yang, “Speculation and Hedging in Segmented Markets,” Review of Financial Studies, vol. 27(3), pp. 881-922, March 2014
  27. 2013Marshall Blume Prize in Financial Research (Rodney L. White Center), first prize, 2013
  28. 2013Itay Goldstein, Emre Ozdenoren and Kathy Yuan, “Trading Frenzies and Their Impact on Real Investment,” Journal of Financial Economics, vol. 109(2), pp. 566-582, August 2013
  29. 2012Alex Edmans, Itay Goldstein and Wei Jiang, “The Real Effects of Financial Markets: The Impact of Prices on Takeovers,” Journal of Finance, vol. 67(3), pp. 933-971, June 2012
  30. 2011Lucian Bebchuk and Itay Goldstein, “Self-Fulfilling Credit Market Freezes,” Review of Financial Studies, vol. 24(11), pp. 3519-3555, November 2011
  31. 2011Marshall Blume Prize in Financial Research (Rodney L. White Center), first prize, 2011
  32. 2011Itay Goldstein, Emre Ozdenoren and Kathy Yuan, “Learning and Complementarities in Speculative Attacks,” Review of Economic Studies, vol. 78(1), pp. 263-292, January 2011
  33. 2010Qi Chen, Itay Goldstein and Wei Jiang, “Payoff Complementarities and Financial Fragility: Evidence from Mutual Fund Outflows,” Journal of Financial Economics, vol. 97(2), pp. 239-262, August 2010
  34. 2010Philip Bond, Itay Goldstein and Edward Simpson Prescott, “Market-Based Corrective Actions,” Review of Financial Studies, vol. 23(2), pp. 781-820, February 2010
  35. 2010Michael Bradley, Alon Brav, Itay Goldstein and Wei Jiang, “Activist Arbitrage: A Study of Open-Ending Attempts of Closed-End Funds,” Journal of Financial Economics, vol. 95(1), pp. 1-19, January 2010
  36. 2010Itay Goldstein, “Strategic Complementarities and the Twin Crises,” Economic Journal, vol. 115, pp. 368-390, April 2005. Reprinted in Liquidity and Crises, Franklin Allen, Elena Carletti, Jan Pieter Krahnen, and Marcel Tyrell ed., 2010, Oxford University Press.
  37. 2009Terker Family Prize in Investment Research (Rodney L. White Center), honorable mention, 2009
  38. 2009Itay Goldstein and Ady Pauzner, “Demand Deposit Contracts and the Probability of Bank Runs,” Journal of Finance, vol. 60(3), pp. 1293-1328, June 2005. Reprinted in Financial Crises, the International Library of Critical Writings in Economics, Franklin Allen and Douglas Gale ed., 2009, Edward Elgar Publishing.
  39. 2008Qi Chen, Itay Goldstein and Wei Jiang, “Directors' Ownership in the U.S. Mutual Fund Industry,” Journal of Finance, vol. 63(6), pp. 2629-2677, December 2008
  40. 2008Itay Goldstein and Alexander Guembel, “Manipulation and the Allocational Role of Prices,” Review of Economic Studies, vol. 75(1), pp. 133-164, January 2008
  41. 2007Simon Gervais and Itay Goldstein, “The Positive Effects of Biased Self-Perceptions in Firms,” Review of Finance, vol. 11(3), pp. 453-496, September 2007
  42. 2007Qi Chen, Itay Goldstein and Wei Jiang, “Price Informativeness and Investment Sensitivity to Stock Price,” Review of Financial Studies, vol. 20(3), pp. 619-650, May 2007
  43. 2006Itay Goldstein and Assaf Razin, “An Information-Based Trade Off between Foreign Direct Investment and Foreign Portfolio Investment,” Journal of International Economics, vol. 70(1), pp. 271-295, September 2006
  44. 2005Nominated for Smith Breeden Prize for the best article published in the Journal of Finance, 2005
  45. 2004Alex Cukierman, Itay Goldstein and Yossi Spiegel, “The Choice of Exchange Rate Regime and Speculative Attacks,” Journal of the European Economic Association, vol. 2(6), pp. 1206-1241, December 2004.
  46. 2004Itay Goldstein and Ady Pauzner, “Contagion of Self-Fulfilling Financial Crises due to Diversification of Investment Portfolios,” Journal of Economic Theory, vol. 119(1), pp. 151-183, November 2004.
  47. Lead Article

Positions & affiliations9

  • University of Pennsylvania (2004 - Present)
  • Duke University (2001 - 2004)
  • Academic Advisor, Bank of Canada, 2015-
  • Visiting Scholar, Federal Reserve Bank of Richmond, 2013
  • Academic Consultant, Federal Reserve Bank of New York, 2011-
  • Academic Consultant, Committee on Capital Markets Regulation 2010-2012
  • Visiting Scholar, Federal Reserve Bank of Philadelphia, 2005-
  • Visiting Scholar, Princeton University, 2000-2001
  • Economist, Bank of Israel, 1998-2000.