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.

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...

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...

Stephan Seiler, Anna Tuchman, Song Yao
January 9, 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...

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,...

Rebecca Lester
November 22, 2018

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...

Benjamin Hébert, Michael Woodford
November 14, 2018

Revise and Resubmit, Econometrica

We propose a new approach to modeling the cost of information structures in rational inattention problems: the “neighborhood-based” cost functions. These cost functions have two properties that we view as desirable:...

Peter A.E. Koudijs, Laura Salisbury
November 13, 2018

R&R at Journal of Financial Economics

We study the impact of marital property legislation passed in the U.S. South in the 1840s on household investment. These laws protected the assets of newly married women from creditors...

Hunt Allcott, Rebecca Diamond, Jean-Pierre Dubé, Jessie Handbury, Ilya A. Rahkovsky, Molly Schnell
November 9, 2018

We study the causes of “nutritional inequality”: why the wealthy eat more healthfully than the poor in the United States. Exploiting supermarket entry, household moves to healthier neighborhoods, and purchasing patterns among households with identical...

Shai Bernstein, Rebecca Diamond, Timothy James McQuade, Beatriz Pousada
November 6, 2018

We characterize the contribution of immigrants to US innovation, both through their direct productivity as well as through their indirect spillover effects on their native collaborators. To do so, we link patent records to a...

Erica Plambeck
November 2018
Kevin Smith
October 25, 2018

In this paper, I develop an option-pricing model that formally incorporates a disclosure event. Using the model, I first theoretically examine how two properties of the disclosure – its overall informativeness and its informativeness given...

Dana Foarta, Takuo Sugaya
October 16, 2018

We study when and how intervention to stop a project is optimally used in a repeated relationship between a principal and a policymaker. The policymaker is privately informed about his ability, where a higher ability...

Lisa De Simone, Rebecca Lester
October 15, 2018

Prior to 2018, U.S. repatriation taxes motivated companies to retain cash offshore.  Using confidential jurisdiction-specific data from the Bureau of Economic Analysis, we find that firms with high tax-induced foreign cash have approximately 3.3 percent...

Susan Athey, Zhengyuan Zhou, Stefan Wager
October 10, 2018

In many settings, a decision-maker wishes to learn a rule, or policy, that maps from observable characteristics of an individual to an action. Examples include selecting offers, prices, advertisements, or emails to send to consumers,...

David Broockman, Evan J. Soltas
October 9, 2018

We exploit a natural experiment to identify discrimination in elections. In Illinois Republican presidential primaries, voters vote for delegates bound to presidential candidates, but delegates’ names convey information about their race and gender. We identify...

Charles M. C. Lee, Edward M. Watts
October 9, 2018

This study examines how an increase in tick size affects algorithmic trading (AT), fundamental information acquisition (FIA), and the price discovery process around earnings announcements (EAs). Leveraging the SEC’s randomized “Tick Size Pilot” experiment, we...

Bar Light, Gabriel Weintraub
October 8, 2018

The standard solution concept for stochastic games is Markov perfect equilibrium (MPE); however, its computation becomes intractable as the number of players increases. Instead, we consider mean field equilibrium (MFE) that has been popularized in...

Ed deHaan, David F. Larcker, Charles McClure
October 3, 2018

We examine the long-term effects of interventions by activist hedge funds. Prior papers document positive equal-weighted long-term returns and operating performance improvements following activist interventions, and typically conclude that activism is beneficial. We extend prior...