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.

Barney Hartman-Glaser, Benjamin Hébert
January 6, 2019

Revise and Re-submit, Journal of Finance

We model the widespread failure of contracts to share risk using available indices. A borrower and lender can share risk by conditioning repayments on an index. The lender has private...

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,...

Eduardo Davila, Benjamin Hébert
January 2019

We study optimal corporate taxation when firms are financially constrained. We describe a corporate taxation principle: taxes should be levied on unconstrained firms, which value resources inside the firm less than constrained firms. Under complete...

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...

David Broockman, Neil Malhotra
November 30, 2018

Influential theories indicate concern that campaign donors exert outsized political influence. However, little data documents what donors actually want from government; and existing research largely neglects donors’ views on individual issues. We argue there should...

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:...

Benjamin Hébert, Michael Woodford
November 14, 2018

Revise and Re-submit, Econometrica

We derive, from first principles, continuous time models of rational inattention. We begin by describing dynamic discrete time models, and stating conditions on the cost of information in such models. Using these...

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...

Piotr Dworczak, Scott Duke Kominers, Mohammad Akbarpour
November 11, 2018

When macroeconomic tools fail to respond to wealth inequality optimally, regulators can still seek to mitigate inequality within individual markets. A social planner with distributional preferences might distort allocative efficiency to achieve a more desirable...

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...

Kevin Smith
November 9, 2018

In this paper, I study the impact of a firm’s risk disclosure on investors’ desire to acquire information about the firm. I first show that risk disclosure complements private learning by enabling sophisticated investors to...

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...