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Working Papers

These papers are working drafts of research which often appear in final form in academic journals. The published versions may differ from the working versions provided here.

Martin Gaynor, Carol Propper, Stephan Seiler
December 2016

The impacts of choice in public services are controversial.  We exploit a reform in the English National Health Service to assess the impact of relaxing constraints on patient choice. We estimate a demand model that...

Darrell Duffie, Piotr Dworczak, Haoxiang Zhu
September 20, 2016

We analyze the role of benchmarks in over-the-counter markets subject to search frictions. The publication of a benchmark can, under conditions, raise total social surplus by (i) increasing the volume of beneficial trade, (ii) reducing...

Iván Marinovic, Andrzej Skrzypacz, Felipe Varas
September 15, 2016

We study firm’s incentives to build and maintain reputation for quality, when quality is persistent and can be certified at a cost. We characterize all Markov-perfect equilibria where the timing of certification and investment depend...

Lisa De Simone, Richard Sansing
September 1, 2016

This study investigates the use of a cost sharing arrangement (CSA) by multinational corporations (MNCs) to shift the income attributable to valuable intellectual property (IP) to low-tax foreign jurisdictions. Using a strategic tax compliance model,...

Stephen D. Comello, Stefan J. Reichelstein
September 2016

The policy of net metering allows operators of residential- and commercial solar PV systems to sell surplus electricity back to their utility at the going retail rate. This policy has recently been criticized on the...

Alan D. Jagolinzer, David F. Larcker, Gaizka Ormazabal, Daniel J. Taylor
September 2016

This paper examines the relation between political connections and informed trading by corporate insiders in the context of the Financial Crisis. The unprecedented magnitude of government intervention, the substantial impact of this intervention on firm...

Stefan J. Reichelstein, Ansu Sahoo
September 2016

A basic tenet of microeconomics is that for a competitive industry in equilibrium the market price of a product will be equal to its marginal cost. This paper develops a model framework and a corresponding...

Rebecca Lester, Dominika Langenmayr
August 26, 2016
Saumitra Jha, Moses Shayo
August 26, 2016

Financial markets expose individuals to the broader economy. Does participation in financial markets also lead citizens to re-evaluate the costs of conflict, their views on politics and even their voting decisions? Prior to the 2015...

Anna Tuchman, Harikesh S. Nair, Pedro M. Gardete
August 19, 2016

We use a new dataset that links the TV ad consumption behavior of a panel of consumers with their product choice behavior to measure the co-determination of demand for products and advertising. Leveraging the variation...

Yonatan Gur, Lijian Lu, Gabriel Weintraub
August 11, 2016

Framework agreements (FAs) are procurement mechanisms commonly used by buying agencies around the world to satisfy demand that arises over a certain time horizon. This paper is one of the first in the literature that...

Susan Athey, Emilio Calvano, Saumitra Jha
August 6, 2016

We analyze the classic problem of sustaining trust when cheating and leaving trading partners is easy, and outside enforcement is difficult. We construct equilibria where individuals are loyal to smaller groups– communities– that allow repeated...

Fabio Pinna, Stephan Seiler
August 3, 2016

We study consumer search behavior in a brick-and-mortar store environment, using a unique data set obtained from radio frequency identification tags, which are attached to supermarket shopping carts. This technology allows us to record consumers’...

Susan Athey, Iva Parashkevov, Vishnu Sarukkai, Jing Xia
August 2016

This paper develops a model of user adoption and use of virtual currency (such as Bitcoin), and focusing on the dynamics of adoption in the presence of frictions arising from exchange rate uncertainty. The theoretical model can...

Lisa De Simone, Jordan Nickerson, Jeri K. Seidman, Bridget Stomberg
July 26, 2016

Can financial statement proxies reliably identify tax avoidance? This is an important question because our understanding of the determinants of tax avoidance largely depends on results generated using such proxies. We seed Compustat data with three...

Lisa De Simone, Jing Huang, Linda Krull
July 26, 2016

We investigate how R&D contributes to foreign profit margins in U.S. multinational corporations (MNCs) through wage savings and income shifting. Our research question is timely and important given rising foreign R&D investments and recent scrutiny by...

Lisa De Simone, Rebecca Lester
July 25, 2016

We study whether innovation box tax incentives, which reduce tax rates on innovation-related income, are associated with tax-motivated income shifting, investment, and employment in the countries that implement these regimes. Using a sample of...

Shannon Chen, Lisa De Simone, Michelle Hanlon, Rebecca Lester
July 25, 2016

We study whether innovation box tax incentives, which reduce tax rates on innovation-related income, are associated with tax-motivated income shifting, investment, and employment in the countries that implement these regimes. Using a sample of...

Ian D. Gow, Steven N. Kaplan, David F. Larcker, Anastasia A. Zakolyukina
July 6, 2016

Based on two samples of high quality personality data for chief executive officers (CEOs), we use linguistic features extracted from conferences calls and statistical learning techniques to develop a measure of CEO personality in terms...