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.

David F. Larcker, Edward M. Watts
February 12, 2019

This study investigates whether investors are willing to trade-off wealth for societal benefits. We take advantage of unique institutional features of the municipal securities market to provide insight into this question. Since 2013, over $23...

David F. Larcker, Charles McClure, Christina Zhu
February 11, 2019

We examine the selection of peer groups that boards of directors use when setting the level of CEO compensation. This choice is controversial because it is difficult to ascertain whether peer groups are selected to...

Rebecca Lester
February 7, 2019

How do U.S. companies respond to incentives intended to encourage domestic manufacturing? I study the Domestic Production Activities Deduction (DPAD), which was enacted in the American Jobs Creation Act of 2004 and was the third...

Heitzman Shane, Rebecca Lester
February 6, 2019

We examine the relation between tax net operating loss (NOL) carryforwards and corporate cash holdings. Corporate taxation of passive income increases the cost of holding liquid assets (“cash”), but NOLs can shield that income from...

Rebecca Lester, Lisa De Simone, Aneesh Raghunandan
February 1, 2019

We examine the association between state and local firm-specific tax subsidies and business activity in the surrounding county, measured as the number of business establishments, number of employees, aggregate wages, per capita employment, and per...

Lisa De Simone, Rebecca Lester, Kevin Markle
February 1, 2019

We examine how U.S. individuals respond to regulation intended to reduce offshore tax evasion.   Specifically, we study investment responses to the Foreign Account Tax Compliance Act (FATCA), which requires foreign financial institutions to report information...

Ruihuan Du, Yu Zhong, Harikesh S. Nair, Bo Cui, Ruyang Shou
January 30, 2019

This paper describes a practical system for Multi Touch Attribution (MTA) for use by a publisher of digital ads. We developed this system for, an eCommerce company, which is also a publisher of digital...

Nikhil Agarwal, Itai Ashlagi, Michael Rees, Paulo Somaini, Daniel Waldinger
January 27, 2019

A transplant can improve a patient’s life while saving several hundreds of thousands of dollars in healthcare expenditures. Organs from deceased donors, like many other scarce public resources (e.g. public housing, child-care, publicly funded long-term...

Stephan Seiler, Anna Tuchman, Song Yao
January 22, 2019

We analyze the impact of a tax on sweetened beverages, often referred to as a “soda tax,” using a unique data-set of prices, quantities sold and nutritional information across several thousand taxed and untaxed beverages...

Anat R. Admati, Martin F. Hellwig
January 14, 2019

We take issue with claims that the funding mix of banks, which makes them fragile and crisis-prone, is efficient because it reflects special liquidity benefits of bank debt. Even aside from neglecting the systemic damage...

Juliane Begenau
January 14, 2019

Accepted at the Journal of Financial Economics

This paper develops a quantitative dynamic general equilibrium model in which households’ preferences for safe and liquid assets constitute a violation of Modigliani and Miller. I show that...

Katherine Casey, Rachel Glennerster, Edward Miguel, Maarten Voors
January 11, 2019

Where the state is weak, traditional authorities often control the local provision of land, justice, and public goods. These authorities are criticized for ruling in an undemocratic and unaccountable fashion, and are typically quite old...

Ian D. Gow, David F. Larcker, Anastasia A. Zakolyukina
January 3, 2019

We construct a novel measure of disclosure choice by firms. Our measure uses linguistic analysis of conference calls to flag a manager’s response as providing an explicit “non-answer” to an analyst’s question. Using our measure,...

Pedro M. Gardete, Megan H. Antill
January 2019

Previously titled “Avoiding Lemons in Search of Peaches: Designing Information Provision”

The increasing amount of data available to consumers has most likely aided in decision-making. However, it has also created an opportunity for sellers to...

Anat R. Admati
January 2019

A healthy and stable financial system enables efficient resource allocation and risk sharing. A reckless and distorted system, however, causes enormous harm. The cycles of boom, bust, and crisis that repeatedly plague banking and finance...

Melanie Rudd, Rhia Catapano, Jennifer Aaker

Forthcoming in Journal of Consumer Psychology 2019

In this conceptual paper, we review three decades of research on time and meaning in consumer research and psychology to identify key themes that have emerged, build frameworks...

Pedro M. Gardete, Liang Guo

Under Review.

Abstract not available.

Zhengyang Jiang, Arvind Krishnamurthy, Hanno Lustig
December 4, 2018

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,...

David F. Larcker, Brian Tayan
December 3, 2018

Companies are required to have a reliable system of corporate governance in place at the time of IPO in order to protect the interests of public company investors and stakeholders. Yet, relatively little is known...

Shai Bernstein, Abhishek Dev, Josh Lerner
December 2018

This paper explores the creation and evolution of new stock exchanges around the world geared towards entrepreneurial companies, known as second-tier exchanges. Using hand-collected novel data, we document the proliferation of these new stock exchanges...