Publications

We show how users’ activity on Facebook relates to their personality, as measured by the standard Five Factor Model. Our dataset consists of the personality profiles and Facebook profile data of 180,000 users. We examine correlations between…

In this article, we introduce a new method to approximate Markov perfect equilibrium in large-scale Ericson and Pakes (1995)-style dynamic oligopoly models that are not amenable to exact solution due to the curse of dimensionality. The method is…

This study investigates the relation between corporate governance and CEO pay levels and the extent to which the higher pay found in firms using compensation consultants is related to governance differences. Using proxy statement disclosures from…

We show how the quality of decisions based on the aggregated opinions of the crowd can be conveniently studied using a sample of individual responses to a standard IQ questionnaire. We aggregated the responses to the IQ questionnaire using simple…

This article analyzes the dynamic coordination problem among creditors of a firm with a time-varying fundamental and a staggered debt structure. In deciding whether to roll over his debt, each maturing creditor is concerned about the rollover…

The public believes that “say on pay” reduces executive compensation and leads to improved compensation practices. The research evidence, however, shows this is not the case. Is it time to rethink say on pay? The Closer Look series is a…

Laws, regulations, and enforcement have controlled drug counterfeiting the United States, but there is growing evidence of organized groups profiting from drug counterfeiting. The practice of inference, using evidence rather than opening outer…

This article describes an optimization process used to schedule the First Division of Argentina’s professional volleyball league. The teams in the league are grouped into couples, and matches are held on Thursdays and Saturdays. In each pair of…

It is a standard practice in regression analyses to allow for clustering in the error covariance matrix if the explanatory variable of interest varies at a more aggregate level (e.g., the state level) than the units of observation (e.g.,…

Here we propose an account of the link between exchange structure and the emergence of solidarity capable of accounting for the conflicting evidence social scientists have found regarding the relationship between social exchange structures and…

We propose a redesign of sovereign Credit Default Swaps (CDS). Under our proposal, a notional CDS position of €100 can be settled by the delivery of whatever package of instruments a sovereign gives in exchange for legacy bonds with a face value…

We study rollover risk and collateral value in a dynamic asset pricing model with endogenous debt financing by extending the framework of Geanakoplos (2009) with a generic binomial tree and time-varying heterogeneous beliefs. Optimistic borrowers…

We estimate linguistic-based classification models of deceptive discussions during quarterly earnings conference calls. Using data on subsequent financial restatements and a set of criteria to identify severity of accounting problems, we label…

This article studies a dynamic agency problem in which a risk-averse agent can save privately. In the optimal contract, (i) cash compensations exhibit downward rigidity to failures; (ii) permanent pay raises occur when the agent’s historical…

Relying on comprehensive measures of financial knowledge, we provide evidence of a strong positive association between financial literacy and net worth, even after controlling for many determinants of wealth. We discuss two channels through which…

During the last quarter of 2008, financial losses in state pension funds varied from 12 percent to 68 percent of the revenue generated by the state government. We quantify a sovereign default channel in the state municipal market by examining how…

Hires occur for two reasons - to grow a business and to replace those who have left (churn). Churn is an important part of employment dynamics, allowing workers to move to their most productive use. We present evidence on churn from the Job…

Actions that do not have as their goal the advancement or protection of one’s material interests are often seen as illegitimate. Four studies suggested that moral values can legitimate action in the absence of material interest. The more…