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.

John E. Bistline, Stephen D. Comello, Anshuman Sahoo
August 5, 2017

Many irreversible long-run capital investments entail opportunities for managers to respond flexibly to changes in the economic environment. However, common levelized cost measures used to guide decision-making, such as the levelized cost of electricity, implicitly...

Darrell Duffie, Leif Andersen, Yang Song
August 1, 2017

We demonstrate that the funding value adjustments (FVAs) of major dealers are debt-overhang costs to their shareholders. In order to maximize shareholder value, dealer quotations therefore adjust for FVAs. Contrary to current valuation practice, FVAs...

Benjamin Hébert, Michael Woodford
July 26, 2017

We propose a new principle for measuring the cost of information structures in rational inattention problems, based on the cost of generating the information used to make a decision through a dynamic evidence accumulation process....

Lisa De Simone, Richard Sansing
July 18, 2017

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

Shai Bernstein, Josh Lerner, Filippo Mezzanotti
July 18, 2017

Do private equity firms contribute to financial fragility during economic crises? We find that during the 2008 financial crisis, PE-backed companies increased investments relative to their peers, while also experiencing greater equity and debt inflows....

David J. Lowsky, Donald K.K. Lee, Stefanos Zenios
July 16, 2017

A Health Savings Account (HSA) is a tax-advantaged savings account available only to households with high-deductible health insurance. This paper provides initial answers to two questions related to HSAs: 1) How should a household determine...

Shannon Chen, Lisa De Simone, Michelle Hanlon, Rebecca Lester
July 10, 2017

We study whether innovation box tax incentives, which reduce tax rates on innovation-related income, are associated with tax-motivated income shifting and local investment in the countries that implement these regimes. Using a matched sample...

Shai Bernstein, Timothy James McQuade, Richard R. Townsend
July 7, 2017

Do household wealth shocks affect employee output? We examine this question through the lens of technological innovation, by comparing employees that worked at the same firm and lived in the same metropolitan area, but experienced...

Yash Kanoria, Daniela Saban
July 5, 2017

Two-sided matching platforms, such as those for labor, accommodation, dating, and taxi hailing, can control and optimize over many aspects of the search for partners. To understand how the search for partners should be designed,...

Jung Ho Choi
July 2017

I evaluate the role of accrual accounting in improving firms’ production decisions and resource allocation across firms. I introduce both cash flow and accounting earnings as imperfect measures of performance into a general equilibrium model...

Matthew Corritore, Amir Goldberg, Sameer B. Srivastava
July 2017

This article deepens our understanding of how the culture of an organization can reflect its underlying capacity for execution and creative exploration and thereby foreshadow how it

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Lisa De Simone, Jordan Nickerson, Jeri K. Seidman, Bridget Stomberg
June 27, 2017

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 address this question...

Anat R. Admati
June 26, 2017

Financialized corporate governance as commonly practiced causes significant inefficiencies and harm. Corporations and governments routinely fail to design and enforce rules that reduce the opacity of corporations, create effective commitments that prevent harm, and ensure...

John-Paul Ferguson, Rembrand Koning
June 18, 2017

Racial segregation between American workplaces is greater today than it was a generation ago. This increase has happened alongside the declines in within-establishment occupational segregation on which most prior research has focused. We examine more...

Baris Ata, Yinchuan Ding, Stefanos Zenios
June 7, 2017

The deceased-donor kidney transplant candidates in the US are ranked according to characteristics of both the donor and the recipient. We seek the ranking policy that achieves the best efficiency-equity tradeoff, taking into account patients’...

Charles M. C. Lee, Eric C. So, Charles C. Y. Wang
June 3, 2017

We argue, from an extensive literature review, that in the vast majority of research settings, biases in alternative expected-return proxies (ERPs) are irrelevant. Therefore, in most settings, the choice between alternative ERPs should be based...

Jonathan B. Berk, Jules H. van Binsbergen
June 1, 2017

We study a market for a skill that is in short supply and high demand, where the presence of charlatans (professionals who sell a service that they do not deliver on) is an equilibrium outcome....

Donnel A. Briley, Melanie Rudd, Jennifer Aaker
June 2017

Research shows that optimism can positively impact health, but when and why people feel optimistic when confronting health challenges is less clear. Findings from six studies show that the frames people adopt when thinking about...

Andres Elberg, Pedro M. Gardete, Rosario Macera, Carlos Noton
June 2017

This paper investigates the dynamic effects of price promotions in a retail setting through the use of a large-scale field experiment which involved varying the promotion depths of 170 products across 17 categories in 10...

Alberto Abadie, Susan Athey, Guido W. Imbens, Jeffrey M. Wooldridge
June 2017

Previously titled: Finite Population Causal Standard Errors

Consider a researcher estimating the parameters of a regression function based on data for all 50 states in the United States or on data for all visits to...