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.

Darrell Duffie, Piotr Dworczak
March 2018

Recent scandals over the manipulation of LIBOR, foreign exchange benchmarks, and other financial benchmarks have spurred policy discussions over their appropriate design. We characterize the optimal fixing of a benchmark as an estimator of a...

Vladimir Asriyan, Dana Foarta, Victoria Vanasco
March 2018

Draft coming soon.

Dana Foarta, Takuo Sugaya
March 2018

Draft coming soon.

Stephen Comello, Stefan J. Reichelstein, Anshuman Sahoo
March 2018

Over the past decade, solar photovoltaic (PV) power has experienced dramatic deployment growth coupled with substantial decreases in system prices. This article examines how solar PV power is currently positioned in the electricity marketplace and...

Arvind Krishnamurthy, Viral V. Archarya
February 28, 2018

We examine theoretically the role of reserves management and macro-prudential capital controls as ex-post and ex-ante safeguards, respectively, against sudden stops, and argue that these measures are complements rather than substitutes. Absent capital controls, reserves...

Michael Ostrovsky, Michael Schwarz
February 12, 2018

We study the interplay between autonomous transportation, carpooling, and road pricing. We discuss how improvements in these technologies, and interactions among them, will affect transportation markets. Our main results show how to achieve socially efficient...

Aleksandar Andonov, Joshua D. Rauh
February 2018

Institutional investors rely on past performance in setting future return expectations, and these extrapolative expectations affect their target asset allocations. Drawing on newly-required disclosures for U.S. public pension funds, a group that manages approximately $4...

Katherine Casey
January 19, 2018

Classic arguments for decentralization, augmented by ideas about how participation empowers the poor, motivate the widely used approach in foreign aid called community-driven development.  CDD devolves control over the selection, implementation and financial management of...

Kostas Bimpikis, Ozan Candogan, Daniela Saban
January 11, 2018

We explore spatial price discrimination in the context of a ride-sharing platform that serves a network of locations. Riders are heterogeneous in terms of their destination preferences and their willingness to pay for receiving service....

Shai Bernstein, Josh Lerner, Filippo Mezzanotti
January 3, 2018

Does private equity (PE) contribute to financial fragility during economic crises? Academics and regulators have worried that the proliferation of poorly structured transactions during booms may increase the vulnerability of the economy to downturns. During...

Hunt Allcott, Rebecca Diamond, Jean-Pierre Dubé
January 2, 2018

We study the causes of “nutritional inequality”: why the wealthy tend to eat more healthfully than the poor in the U.S. Using two event study designs exploiting entry of new supermarkets and households’ moves to...

Jung Ho Choi
January 2018

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

Sarah K. Stein, Amir Goldberg, Sameer B. Srivastava
January 2018

This article examines how cultural matching relates to a job applicant’s likelihood of getting hired into an organization and identifies the components of cultural similarity that matter

Georg Schorpp, Feryao Erhun, Hau L. Lee
January 2018

We study contracting for a three-tier supply chain consisting of a buyer, a supplier, and a sub-supplier where disruptions of random length occur at the sub-supplier. As is common in supply chains, the buyer has...

Cody Cook, Rebecca Diamond, Jonathan Hall, John A. List, Paul Oyer
January 2018

The growth of the “gig” economy generates worker flexibility that, some have speculated, will favor women. We explore one facet of the gig economy by examining labor supply choices and earnings among more than a...

Mary E. Barth, wayne R. Landsman
January 2018

Whether fair value accounting should be used in financial reporting has been the subject of debate for many years. A key dimension to this debate is whether fair value earnings can provide information to financial...

Kostas Bimpikis, Kimon Drakopoulos, Shayan Ehsani

Abstract coming soon.

Kostas Bimpikis, Wedad J. Elmaghraby, Ken Moon, Wenchang Zhang

Platforms can obtain sizable returns by operationally managing their market thickness, i.e., the availability of supply-side inventory. Using data from a natural experiment on a major B2B auction platform specializing in the $424 billion secondary...

Omar Besbes, Yonatan Gur, Assaf Zeevi

In a multi-armed bandit (MAB) problem a gambler needs to choose at each round of play one of K arms, each characterized by an unknown reward distribution. Reward realizations are only observed when an arm...

Kostas Bimpikis, Ozan Candogan, Shayan Ehsani

This paper studies multi-tier supply chain networks in the presence of disruption risk. Firms decide how to source their inputs from upstream suppliers so as to maximize their expected profits, and prices of intermediate goods...