Publications

This paper explores the implications of filtering and no-arbitrage for the maximum likelihood estimates of the entire conditional distribution of the risk factors and bond yields in Gaussian macro-finance term structure model (…

Often, a goal of renewable energy policies is the development of domestic renewable energy technology manufacturing capacity. The Jawaharlal Nehru National Solar Mission (NSM) in India is an example; besides targeting an installation of 20 GW of…

Nearly two-thirds of CEOs do not receive outside leadership advice, but nearly all want it. “Lonely at the top” resonates for most CEOs.

“It’s lonely at the top” appears to be truer than ever, according to a new study conducted by the…

Presidential candidates purchase advertising based on each state’s potential to tip the election. The structure of the Electoral College concentrates spending in battleground states, such that a majority of voters are ignored. We estimate an…

To better understand how a cap-and-trade market might function under high-carbon-price conditions, the authors ran a simulation called the ‘Electricity Strategy Game’ created by Severin Borenstein and James Bushnell. Among its most startling…

This paper presents a tractable model of dynamic moral hazard with purely pecuniary private benefits. To obtain a tractable but binding moral hazard problem, I introduce recontracting: the agent can offer a new continuation contract to the…

This paper examines 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…

This paper explores the application of oblivious equilibrium to concentrated industries. We define an extended notion of oblivious equilibrium that we call partially oblivious equilibrium (POE) that allows for there to be a set of “dominant firms…

The financial shock of September 2008 occurred five years ago. The effects are still with us. In this essay we draw on our experiences 2 in the Bush White House and our work and teaching since then to offer views on recent economic history. We…

We propose that power increases how severely people punish transgressors. Further, we argue that this greater severity stems from an increased sense of moral clarity instilled by the psychological experience of power. We investigate the linkages…

No abstract available.

Prior research argues that a manager whose wealth is more sensitive to changes in the firm’s stock price has a greater incentive to misreport. However, if the manager is risk-averse and misreporting increases both equity values and equity risk,…

We survey the theoretical and empirical literature on decentralization within firms. We first discuss how the concept of incomplete contracts shapes our views about the organization of decision-making. We then overview the empirical evidence on…

The once mutual relationship between social movement and organizational studies has recently become lopsided. Organizational studies scholars have increasingly drawn on insights from the social movements literature, at the same time social…

We study the nature of deflation risk by extracting the objective distribution of inflation from the market prices of inflation swaps and options. We find that the market expects inflation to average about 2.5 percent over the next 30 years.…

Many have argued that financial statements created under an accounting model that measures financial instruments at fair value would not fairly represent a bank’s business model. In this study we examine whether financial statements using fair…

This paper considers a particular class of dynamic robust optimization problems, where a large number of decisions must be made in the first stage, which consequently fix the constraints and cost structure underlying a one-dimensional,…

High-trust organizations are characterized by lower bureaucracy, simpler procedures, and higher productivity. Would shareholders be better off if companies had fewer controls and instead spent more time fostering trust?

We thank Luke Stein for excellent research assistance, Will Adams for his contributions to this project, and two anonymous referees, the editor, Chris Knittel, Ulrike Malmendier, Vikrant Vig, and seminar participants at IO Fest 2008 at Stanford,…