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.

David F. Larcker, Edward M. Watts
February 22, 2019

This study investigates whether investors are willing to trade-off wealth for societal benefits. We take advantage of unique institutional features of the municipal securities market to provide insight into this question. Since 2013, over $23...

Susan Athey, Stefan Wager
February 20, 2019

We apply causal forests to a dataset derived from the National Study of Learning Mindsets, and consider resulting practical and conceptual challenges. In particular, we discuss how causal forests use estimated propensity scores to be...

David F. Larcker, Charles McClure, Christina Zhu
February 11, 2019

We examine the selection of peer groups that boards of directors use when setting the level of CEO compensation. This choice is controversial because it is difficult to ascertain whether peer groups are selected to...

Rebecca Lester
February 7, 2019

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...

Heitzman Shane, Rebecca Lester
February 6, 2019

We examine the relation between tax net operating loss (NOL) carryforwards and corporate cash holdings. Corporate taxation of passive income increases the cost of holding liquid assets (“cash”), but NOLs can shield that income from...

Rebecca Lester, Lisa De Simone, Aneesh Raghunandan
February 1, 2019

We examine the association between state and local firm-specific tax subsidies and business activity in the surrounding county, measured as the number of business establishments, number of employees, aggregate wages, per capita employment, and per...

Dmitry Arkhangelsky, Susan Athey, David A. Hirshberg, Guido W. Imbens, Stefan Wager
February 1, 2019

We present a new perspective on the Synthetic Control (SC) method as a weighted least squares regression estimator with time fixed effects and unit weights. This perspective suggests a generalization with two way (both unit...

Lisa De Simone, Rebecca Lester, Kevin Markle
February 1, 2019

We examine how U.S. individuals respond to regulation intended to reduce offshore tax evasion.   Specifically, we study investment responses to the Foreign Account Tax Compliance Act (FATCA), which requires foreign financial institutions to report information...

Susan Athey, Billy Ferguson, Mathew Gentzkow, Tobias Schmidt
February 2019

We introduce a novel measure of segregation, experienced isolation, that captures individuals’ exposure to diverse others in the places they visit over the course of their days. Using novel Global Positioning System (GPS) data collected...

Ruihuan Du, Yu Zhong, Harikesh S. Nair, Bo Cui, Ruyang Shou
January 30, 2019

This paper describes a practical system for Multi Touch Attribution (MTA) for use by a publisher of digital ads. We developed this system for JD.com, an eCommerce company, which is also a publisher of digital...

Nikhil Agarwal, Itai Ashlagi, Michael Rees, Paulo Somaini, Daniel Waldinger
January 27, 2019

A transplant can improve a patient’s life while saving several hundreds of thousands of dollars in healthcare expenditures. Organs from deceased donors, like many other scarce public resources (e.g. public housing, child-care, publicly funded long-term...

Zhiyao Chen, Dirk Hackbarth, Ilya A. Strebulaev
January 19, 2019

We build a dynamic model to link two empirical patterns: the negative failure probability-return relation (Campbell, Hilscher, and Szilagyi, JF, 2008) and the positive distress risk premium-return relation (Friewald, Wagner, and Zechner, JF, 2014). We...

Juliane Begenau
January 14, 2019

Accepted at the Journal of Financial Economics

This paper develops a quantitative dynamic general equilibrium model in which households’ preferences for safe and liquid assets constitute a violation of Modigliani and Miller. I show that...

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...

Eesha Sharma, Stephanie M. Tully, Xiang Wang
2019

Abstract coming soon.

Melanie Rudd, Rhia Catapano, Jennifer Aaker
2019

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...

Sharma Eesha, Stephanie M. Tully, Cynthia Cryder
2019

Abstract coming soon.