Publications

This CEO succession study shows shortfalls in C-suite talent development and succession planning.

Rumors and speculation abound when it comes to discussions about CEO succession at high-profile companies such as Ford, Proctor…

This paper examines the impact of the conglomerate form on the scale and novelty of corporate Research and Development (R&D) activity. I exploit a quasi-experiment involving failed…

We argue that internal capital market imperatives of business groups i.e., reallocation of capital across group firms, influences an affiliated firm’s dividend policy. Intuition is developed in a model in which business group insiders distribute…

This paper develops a game-theoretic model based on a two-sided market framework to compare Internet service providers’ (ISPs) investment incentives, content providers’ (CPs) participation, and social welfare between neutral and non-neutral…

This article studies the full equilibrium dynamics of an economy with financial frictions. Due to highly nonlinear amplification effects, the economy is prone to instability and occasionally enters volatile crisis episodes. Endogenous risk,…

What explains the relative persistence of same-race romantic relationships? One possible explanation is structural – this phenomenon could reflect the fact that social interactions are already stratified along racial lines – while another…

We calculate increases in contributions required to achieve full funding of state and local pension systems in the United States over 30 years. Without policy changes, contributions would have to increase by 2.5 times, reaching 14.1 percent of…

We use an extensive data set of bilateral exposures on credit default swap (CDS) to estimate the impact on collateral demand of new margin and clearing practices and regulations. We decompose collateral demand for both customers and dealers into…

We reexamine the classic yet static information asymmetry model of Myers and Majluf (1984) in a fully dynamic market. A firm has access to an investment project and can finance it by debt or equity. The market learns the quality of the firm over…

This paper studies a dynamic communication game in which the seller of an asset, whose credibility is unknown to the market, reports changes in the asset value during multiple periods before selling the asset. We characterize the strategy by…

This paper analyzes how the audience for internet news varies with the source of the referral, comparing the audience when users navigate directly to news outlets to that when users are referred by social media. On average, the audience referred…

There is growing appreciation for the advantages of experimentation in the social sciences. Policy-relevant claims that in the past were backed by theoretical arguments and inconclusive correlations are now being investigated using more…

Motivated by India’s nationwide biometric program for social inclusion, we analyze verification (i.e., one-to-one matching) in the case where we possess similarity scores for 10 fingerprints and two irises between a resident’s biometric…

Facebook’s Gross National Happiness (FGNH) indexes the positive and negative words used in the millions of status updates submitted daily by Facebook users. FGNH has face validity: it shows a weekly cycle and increases on national holidays. Also…

We study how competition for talent affects CEO compensation, taking into consideration that CEO decisions and CEO skills or talent are not observable, and CEOs can manipulate performance as measured by outsiders. Firms compete by offering…

This paper explores consumers’ commitment to and conviction about their beliefs in the form of attitude certainty. Based on a review of past research, we present a new framework for understanding attitude certainty and how consumers’…

Demographic lexica have potential for widespread use in social science, economic, and business applications. We derive predictive lexica (words and weights) for age and gender using regression and classification models from word usage in Facebook…

We develop a model of information exchange through communication and investigate its implications for information aggregation in large societies. An underlying state determines payoffs from different actions. Agents decide which other agents to…