A Tough Act to Follow: Contrast Effects In Financial Markets -- by Samuel M....
A contrast effect occurs when the value of a previously-observed signal inversely biases perception of the next signal. We present the first evidence that contrast effects can distort prices in...
View ArticleThe Distribution of Environmental Damages -- by Solomon Hsiang, Paulina...
Most regulations designed to reduce environmental externalities impose costs on individuals and firms. An active body of research has explored how these costs are disproportionately born by different...
View ArticleDemystifying the Destination-Based Cash-Flow Tax -- by Alan J. Auerbach
This paper describes the Destination-Based Cash-Flow Tax (DBCFT), as proposed in 2016 by Republicans in the US House of Representatives, and its potential economic effects. As a new approach and a...
View ArticleHealthy Business? Managerial Education and Management in Healthcare -- by...
We investigate the link between hospital performance and managerial education by collecting a large database of management practices and skills in hospitals across nine countries. We find that...
View ArticleThe Loan Covenant Channel: How Bank Health Transmits to the Real Economy --...
We document the importance of covenant violations in transmitting bank health to nonfinancial firms using a new supervisory data set of bank loans. More than one-third of loans in our data breach a...
View ArticleThe Impact of Trade on Inequality in Developing Countries -- by Nina Pavcnik
This paper assesses the current state of evidence on how international trade shapes inequality and poverty through its influence on earnings and employment opportunities. While the focus is mainly on...
View ArticleThe Effects of Cognitive and Noncognitive Skills on Migration Decisions -- by...
There is growing evidence that cognitive and noncognitive skills affect the economic and social outcomes of individuals. In this paper, we analyze how they affect the migration decisions of individuals...
View ArticleSelection in Health Insurance Markets and Its Policy Remedies -- by Michael...
In this essay, we review the theory and evidence concerning selection in competitive health insurance markets and discuss the common policy tools used to address the problems it creates. We begin by...
View ArticleOlder and Slower: The Startup Deficit's Lasting Effects on Aggregate...
We investigate the link between declining firm entry, aging incumbent firms and sluggish U.S. productivity growth. We provide a dynamic decomposition framework to characterize the contributions to...
View ArticleLearning from Feedback: Evidence from New Ventures -- by Sabrina T. Howell
This paper studies how early stage entrepreneurs learn about the quality of their ventures. I assess the effect of negative feedback on venture abandonment using application and judging data from 87...
View ArticleCivil Asset Forfeiture, Crime, and Police Incentives: Evidence from the...
The 1984 federal Comprehensive Crime Control Act (CCCA) included a provision that permitted local law enforcement agencies to share up to 80 percent of the proceeds derived from civil asset forfeitures...
View ArticleDoes Multispecialty Practice Enhance Physician Market Power? -- by Laurence...
In markets for health services, vertical integration - common ownership of producers of complementary services - may have both pro- and anti-competitive effects. Despite this, no empirical research has...
View ArticleDelivering Education to the Underserved Through a Public-Private Partnership...
We contribute to the school-competition literature by evaluating a program that randomly assigned private schools to underserved villages in Pakistan. Program schools were provided a per-student...
View ArticleBankruptcy and the Cost of Organized Labor: Evidence from Union Elections --...
Unionized workers are entitled to special treatment in bankruptcy court. This can be detrimental to other corporate stakeholders in default states, with unsecured creditors standing to lose the most....
View ArticleReal Exchange Rate Policies for Economic Development -- by Martin Guzman,...
This paper analyzes the role of real exchange rate (RER) policies in promoting economic development. Markets provide a suboptimal amount of investment in sectors characterized by learning spillovers....
View ArticleA Theory of Experimenters -- by Abhijit Banerjee, Sylvain Chassang, Sergio...
This paper proposes a decision-theoretic framework for experiment design. We model experimenters as ambiguity-averse decision-makers, who make trade-offs between subjective expected performance and...
View ArticleIs Pollution Value-Maximizing? The DuPont Case -- by Roy Shapira, Luigi Zingales
DuPont, one of the most respectable U.S. companies, caused environmental damage that ended up costing the company around a billion dollars. By using internal company documents disclosed in trials we...
View ArticleShould Flavors be Banned in E-cigarettes? Evidence on Adult Smokers and...
E-cigarettes are available in over 7,000 flavors, whereas all flavors but menthol are banned in combustible cigarettes. The FDA recently requested a ban on e-cigarette flavors, but was rejected. The...
View ArticleSovereign Bond Prices, Haircuts and Maturity -- by Tamon Asonuma, Dirk...
Rejecting a common assumption in the sovereign debt literature, we document that creditor losses ("haircuts") during sovereign restructuring episodes are asymmetric across debt instruments. We code a...
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Marathon Complete!
I completed one of my sabbatical goals yesterday - running the Twin Cities Marathon. I'm so grateful to my family for all their support, and to many friends, family, colleagues, and former students...
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