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, Mark Mobius
January 11, 2017

A policy debate centers around the question whether news aggregators such as
Google News decrease or increase traffic to online news sites. One side of the debate, typically espoused by publishers, views aggregators as...

Lisa De Simone, Jordan Nickerson, Jeri K. Seidman, Bridget Stomberg
December 16, 2016

Can common empirical tests reliably identify tax avoidance? This is an important question because our understanding of the determinants of tax avoidance largely depends on results generated using such tests. We seed Compustat data...

Octavia "Dana" Foarta, Takuo Sugaya
December 15, 2016

Why might a country choose a decentralized rather than a centralized regulatory structure? And what might reverse this choice? We consider a core institutional relationship in regulation. A regulator exerts effort towards a final outcome,...

Lisa De Simone, Lillian F. Mills, Bridget Stomberg
December 15, 2016

We use confidential Internal Revenue Service data on the magnitude of U.S.-foreign intercompany transactions to develop a measure of the likelihood that U.S. multinational entities (MNEs) shift income out of the U.S. Results show...

Elizabeth Pontikes, William P. Barnett
December 8, 2016

A coevolutionary perspective on knowledge strategy is developed, where variant positions in knowledge space are predicted to result in differential advantages in product space.  In particular, advantages to being both consistent and specialized in knowledge...

Yuliy Sannikov, Andrzej Skrzypacz
December 7, 2016

We build a linear-quadratic model to analyze trading in a market with private information and heterogeneous agents. Agents receive private taste/inventory shocks and trade continuously. Agents differ in their need for trade as well as...

Martin Gaynor, Carol Propper, Stephan Seiler
December 2016

The impacts of choice in public services are controversial.  We exploit a reform in the English National Health Service to assess the impact of relaxing constraints on patient choice. We estimate a demand model that...

Kostas Bimpikis, Ozan Candogan, Daniela Saban
November 11, 2016

We explore spatial price discrimination in the context of a ride-sharing platform that serves a network of locations. Riders at different locations are heterogeneous in terms of their destination preferences, as captured by the demand pattern of the underlying network. Drivers decide whether,...

Elizabeth Blankespoor, Ed deHaan, Christina Zhu
November 7, 2016

In 2014, the Associated Press (AP) began using algorithms to write media articles about firms’ earnings announcements. These “robo-journalism” articles synthesize information from firms’ press releases, analyst reports, and stock performance, and are widely disseminated...

Katherine Casey
November 2, 2016

Voting, like hiring, is fundamentally a forecasting problem: voters try to predict the future performance in office by candidates, just as employers estimate the productivity of prospective workers. Forecast inputs combine observable resume criteria with...

Gabriel Doyle, Amir Goldberg, Sameer B. Srivastava, Michael C. Frank
October 24, 2016

Cultural fit is an elusive construct that is often assumed to play an important role in individual, group, and organizational success. Most existing approaches to measuring culture

...
Michal Kosinski, Yilun Wang, Himabindu Lakkaraju, Jure Leskovec
October 17, 2016

Over the past decade, online social media has had a tremendous impact on the way people engage in social activism. For instance, about 26M Facebook users expressed their support in upholding the cause of marriage...

Anat R. Admati, Peter M. DeMarzo, Martin F. Hellwig, Paul Pfleiderer
October 11, 2016

Firms’ inability to commit to future funding choices has profound consequences for capital structure dynamics. With debt in place, shareholders pervasively resist leverage reductions no matter how much such reductions may enhance firm value. Shareholders...

Susan Athey, Julie Tibshirani, Stefan Wager
October 2016

Forest-based methods are being used in an increasing variety of statistical tasks, including causal inference, survival analysis, and quantile regression. Extending forest-based methods to these new statistical settings requires specifying tree-growing algorithms that are targeted...

Darrell Duffie, Piotr Dworczak, Haoxiang Zhu
September 20, 2016

We analyze the role of benchmarks in over-the-counter markets subject to search frictions. The publication of a benchmark can, under conditions, raise total social surplus by (i) increasing the volume of beneficial trade, (ii) reducing...

Iván Marinovic, Andrzej Skrzypacz, Felipe Varas
September 15, 2016

We study firm’s incentives to build and maintain reputation for quality, when quality is persistent and can be certified at a cost. We characterize all Markov-perfect equilibria where the timing of certification and investment depend...

Lisa De Simone, Richard Sansing
September 1, 2016

This study investigates the use of a cost sharing arrangement (CSA) by multinational corporations (MNCs) to shift the income attributable to valuable intellectual property (IP) to low-tax foreign jurisdictions. Using a strategic tax compliance model,...

Yash Kanoria, Daniela Saban, Jay Sethuraman
September 2016

We consider a two-sided assignment market with agent types and a stochastic structure, similar to models used in empirical studies. We characterize the size of the core in such markets. Each agent has a randomly...

Stephen D. Comello, Stefan J. Reichelstein
September 2016

The policy of net metering allows operators of residential- and commercial solar PV systems to sell surplus electricity back to their utility at the going retail rate. This policy has recently been criticized on the...