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.

Susan Athey, Guido W. Imbens
March 24, 2019

We discuss the relevance of the recent Machine Learning (ML) literature for economics and econometrics. First we discuss the differences in goals, methods and settings between the ML literature and the traditional econometrics and statistics...

Zhengyang Jiang, Arvind Krishnamurthy, Hanno Lustig
March 19, 2019

We develop a theory that links the U.S. dollar’s valuation in FX markets to foreign investors’ demand for U.S. safe assets. When the convenience yield that foreign investors derive from holding U.S. safe assets increases,...

Julian Runge, Harikesh S. Nair, Jonathan Levav
March 18, 2019

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The “freemium” model for digital goods involves selling a base version of the product for free, and making premium product features available to users only on payment. The success of the model...

Katherine Casey, Rachel Glennerster, Kelly Bidwell
March 15, 2019

Candidate debates have a rich history and remain integral to contemporary campaign strategy. There is, however, little evidence that they affect the behavior of voters or politicians. The scarcity of political information in the developing...

Wenxin Du, Benjamin Hébert, Amy Wang
March 14, 2019

Violations of no-arbitrage conditions measure the shadow cost of constraints on intermediaries, and the risk that these constraints tighten is priced. We demonstrate in an intermediary-based asset pricing model that violations of no-arbitrage such as...

Philip G. Berger, Jung Ho Choi, Sorabh Tomar
March 14, 2019

Does decomposing cost of goods sold entail significant competitive costs? We examine this question using a relaxation of disaggregated manufacturing cost disclosure requirements in Korea. Our survey evidence indicates managers perceive these disclosures to provide...

Stephan Seiler, Anna Tuchman, Song Yao
March 12, 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...

Richard Lu, Jennifer A. Chatman, Amir Goldberg, Sameer B. Srivastava
March 3, 2019

Why are some people more successful than others at fitting in culturally over time? Prior research has offered divergent and seemingly inconsistent answers to this question. One perspective has highlighted the importance of shared values...

Katharina Lix, Amir Goldberg, Sameer B. Srivastava, Melissa A. Valentine
March 2019

How does diversity among members of a team affect their performance? Prior research has found diversity to be a double-edged sword that sometimes boosts and in other

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Jung Ho Choi, Brandon Gipper
March 2019

We examine employment effects, such as wages and employee turnover, before, during, and after periods of fraudulent financial reporting. To analyze these effects, we combine U.S. Census data with SEC enforcement actions against firms with...

Pedro M. Gardete, Megan H. Antill
March 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...

David F. Larcker, Edward M. Watts
February 22, 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 JD.com, 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...

Anat R. Admati, Martin F. Hellwig
January 23, 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...