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.

Brandon Gipper, Luzi Hail, Christian Leuz
October 2019

We provide the first partner tenure and mandatory rotation analysis for a large cross-section of U.S. publicly listed firms over an extended period. We analyze the effects on audit quality as well as on audit...

Anqi Li, Davin Raiha, Ken Shotts
October 2019

We develop a model of electoral accountability in the presence of mainstream and alternative media outlets. In addition to standard high and low competence types, the incumbent may be an aspiring autocrat, who controls the...

Eesha Sharma, Stephanie M. Tully, Cynthia Cryder
October 2019

The current research introduces the concept of psychological ownership of money, the notion that consumers perceive money in differing degrees as their own. We suggest that this concept is particularly important in the realm of...

Lisa De Simone, Marcel Olbert
October 2019

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We investigate the effects of mandatory private Country-by-Country (CbC) disclosure to European tax authorities on economic activity. Using rich data on the operations of multinational firms, we exploit the threshold-based application...

Sebastian Di Tella, Robert Hall
October 2019
Benjamin Hébert, Jennifer La'O...
September 26, 2019

This paper analyzes equilibria and efficiency in a class of economies (large games) that feature incomplete information, strategic interaction, and endogenous information acquisition, with beauty contests as a leading example. We adopt the rational inattention...

Navdeep S. Sahni, Charles Zhang
September 26, 2019

We analyze a large-scale field experiment conducted on a US search engine in which 3.3 million users were randomized into seeing more, or less advertising. Our data rejects that users are, overall, averse to search...

Zhengyang Jiang, Arvind Krishnamurthy, Hanno Lustig
September 24, 2019

US monetary policy has an outsized impact on the world economy, a phenomenon that Rey (2013) dubs the global financial cycle. Changes in the US dollar also have an outsized impact on the world economy,...

Min Lui, László Pólos, Michael T. Hannan
September 6, 2019

This paper deals with a central challenge in organizational sociology: to predict adaptive capabilities in changing environments. We address theoretical and methodological gaps in existing research. First, whereas researchers have long acknowledged that the evolution...

Li Chen, Hau L. Lee
September 4, 2019

Responsible supply chain is about ensuring that members of the supply chain are responsible for the well-being of the people and mother earth. There are both the environmental responsibility side and the social responsibility side....

Eduardo Davila, Benjamin Hébert
September 2019

We study optimal corporate taxation when firms are financially constrained. We describe a corporate taxation principle: taxes should be levied on unconstrained firms, which value resources inside the firm less than constrained firms. Under complete...

Jess Benhabib, Jesse Perla, Christopher Tonetti
September 2019

We study how innovation and technology diffusion interact to endogenously determine the shape of the productivity distribution and generate aggregate growth. We model firms that choose to innovate, adopt technology, or produce with their existing...

Lisa De Simone, Ken Klassen, Jeri Seidman
September 2019

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Do firms balance tax and operating considerations when making investment decisions? We investigate whether income-shifting aggressiveness affects new investments and predict firms that aggressively shift income will choose affiliate-level investments driven...

Susan Athey, Guido W. Imbens, Jonas Metzger, Evan Munro
September 2019

Researchers often use artificial data to assess the performance of new econometric methods. In many cases the data generating processes used in these Monte Carlo studies do not resemble real data sets and instead reflect...

Katherine Casey, Abou Bakarr Kamara, Niccolo Meriggi
August 29, 2019

Are ordinary citizens or political party leaders better positioned to select candidates?  While the direct vote primary system in the United States lets citizens choose, it is exceptional, as the vast majority of democracies rely...

Daniela Saban, Gabriel Weintraub
August 13, 2019

Part of thesis finalist of 2015 INFORMS George Dantzig Dissertation Award. Second place 2015 M&SOM Student Paper Competition

Problem definition: We consider the problem faced by a procurement agency that runs an auctiontype mechanism to...

Darrell Duffie, Samuel Antill
August 1, 2019

In our modeled setting, we show that the now-common practice of size discovery detracts from overall Financial market efficiency. A continually operating exchange uses double auctions to discover prices and clear markets. At each of...

Hanno Lustig, Arvind Krishnamurthy
August 1, 2019

Prepared for the 2019 Jackson Hole Symposium hosted by the Kansas City Federal Reserve Bank.


The U.S. dollar exchange rate clears the global market for dollar-denominated safe assets. We find that shifts in...

Charles M. C. Lee, Christina Zhu
August 2019

We use trade-level data to examine the role of actively managed funds (AMFs) in earnings news dissemination.   AMFs trade 170 percent more on earnings announcement (EA) days than on non-EA days.  Abnormal AMF participation is...

Charles A. O’Reilly, Bernadette Doerr
August 2019

Organizational researchers have become increasingly concerned with the potentially destructive consequences of narcissistic leadership. Evidence indicates that grandiose narcissists both aspire to and frequently achieve leadership roles in organizations. However, because narcissists are principally motivated...