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Photo of Lee, Chang

Chang Lee

Assistant Professor, Finance



2427 University Hall

Office Phone:

(312) 996-1458


My research interests lie in the field of theoretical and empirical asset pricing. My current research topics include consumption based asset pricing, market return predictablity, and municipal bond markets. I received my Ph.D. in finance from Kellogg School of Business, Northwestern University in 2013.

Selected Publications

Municipal Borrowing Costs and State Policies for Distressed Municipalities
(coauthored with Pengjie Gao from University of Notre Dame and Dermot Murphy from UIC)

  • Forthcoming at Journal of Financial Economics
  • Featured on the Harvard Law School Bankruptcy Roundtable
  • Presented at the Brookings Institute Municipal Finance Conference

This paper investigates the different state laws for dealing with distressed local governments and the effect of these laws on municipal defaults and borrowing costs. Recent high-profile municipal default cases in Detroit, Puerto Rico, and various cities in California have underscored the importance of default risk in municipal bond markets. Yet, the political and institutional details of municipal default proceedings and their effects on municipal borrowing costs have not been investigated in the literature. This paper fills this gap by examining differences in distress-related laws and statutes across states.