Publications

Federal regulations define adverse drug events as those “associated with the use of a drug in humans whether or not considered drug related”. Health care professionals and consumers can voluntarily report adverse drug events directly to the US…

In a noisy rational expectations framework with costly information, some agents expend resources to become informed, and earn a return for their efforts by trading with the uninformed. Applying this insight, we examine the proposition that an…

Governments may extract rent from private citizens by inflating taxes and spending on projects which benefit special interests. Using a spatial equilibrium model, I show that less elastic housing supplies increase governments’ abilities to…

We present a theory of dynamic coalitions for a legislative bargaining game in which policies continue in effect in the absence of new legislation. We characterize Markov perfect equilibria with dynamic coalitions, which are decisive sets of…

Why do we like the music we do? Research has shown that musical preferences and personality are linked, yet little is known about other influences on preferences such as cognitive styles. To address this gap, we investigated how individual…

We examine the economic determinants of short-sale supply, and its consequences for future stock returns.  Lendable supply increases with expected borrowing costs and decreases with financial statement constructs that indicate overvaluation…

The regression discontinuity (RD) design is popular because it provides a design-based estimate of the incumbency advantage. However, the RD estimate is “local”: it only identifies the effect in hypothetical elections with a 50-50 tie between the…

Under revision for Econometrica

This paper studies U.S. banks’ exposure to interest rate and credit risk. We exploit the factor structure in interest rates to represent many bank positions in terms of simple factor portfolios.…

Nowadays, millions of people around the world use social networking sites to express everyday thoughts and feelings. Many researchers have tried to make use of social media to study users’ online behaviors and psychological states. However,…

We study a setting of non-atomic routing in a network of m parallel links with asymmetry of information. While a central entity (such as a GPS navigation system) — a mediator hereafter — knows the…

The current paper connects anxiety about disease contamination to that about cultural contamination and the exclusionary behavior toward ethnic outgroups that it incites. We suggest that when individuals are exposed to disease fears, an epistemic…

We examine a life-cycle cost concept that applies to both manufacturing and service industries in which upfront capacity investments are essential. Borrowing from the energy literature, we refer to this cost measure as the Levelized Product Cost…

Much of intellectual history is punctuated by the flaring of intellectual outliers, small groups of thinkers who briefly, but decisively, influence the development of ideas, technologies, policies, or worldviews. To understand the flaring of…

In recent years, companies have begun to voluntarily disclose alternative measures of CEO compensation. These figures differ — sometimes significantly — from those reported in the summary compensation tables of the annual proxy. The motivation to…

Motivated by polar extremes of monopartisanship and nonpartisanship in existing literature on parties in legislatures, we introduce and analyze a more moderate theory of competitive partisan lawmaking. The distinguishing feature of competitive…

Bloodletting — the practice of letting blood out to cure a patient — was for centuries one of the main therapies in the west. We lay out three potential explanations for bloodletting’s cultural success:

• it was efficient,
• it…

The present research investigated a novel account of how normative influence varies across culture — whether there exist cultural differences in the motivation to adhere to social norms even when similar norms are prevalent across cultures.…

We estimate the spillovers of properties financed by the Low Income Housing Tax Credit (LIHTC) onto surrounding neighborhood residents. We nonparametrically estimate the impact of LIHTC development on nearby house prices by developing a new…

U.S. CEOs hold a large amount of equity that is not explicitly constrained by ownership guidelines or vesting requirements. Although the average CEO receives a risk premium in his annual pay for holding unconstrained equity, most CEOs hold more…