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.

SSRN Research Paper Series

The Social Science Research Network’s Research Paper Series includes working papers produced by Stanford GSB the Rock Center.

You may search for authors and topics and download copies of the work there.

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The Emergence of Cost Effective Battery Storage

Stephen D. Comello, Stefan J. Reichelstein
July2018

Energy storage will be key to overcoming the intermittency and variability of renewable energy sources, like wind and solar power. This paper proposes a cost metric for measuring the cost of energy storage and for identifying optimally sized…

Disruptions, Resilience and Performance of Emerging Market Entrepreneurs: Evidence from Uganda

Stephen J. Anderson, Amrita Kundu, Kamalini Ramdas
June272018

We examine the effect of firm-specific business disruptions on the performance of small firms in emerging markets. We study the impact of both managerial disruptions (which result in the absence of the entrepreneur-owner or more broadly a key…

When Losses Turn Into Loans: The Cost of Weak Banks

Laura Blattner, Luísa Farinha, Francisco Rebelo
June262018

Winner 2017 BlackRock Applied Research Award

AQR Top Finance Graduate Award 2018

We provide evidence that a weak banking sector contributed to low productivity following the European debt crisis. An…

How Often Do Firms Rebalance Their Capital Structures? Evidence from Corporate Filings

Arthur Kortwewg, Michael Schwert, Ilya A. Strebulaev
June212018

This paper shows that the frequency of capital structure adjustment varies significantly across firms. The most active 25% of firms account for 51% of leverage adjustments, while the least active 50% of firms account for only 19% of such events.…

Stable Predictions across Unknown Environments

Kun Kuang, Ruoxuan Xiong, Peng Cui, Susan Athey, Bo Li
June162018

In many important machine learning applications, the training distribution used to learn a probabilistic classifier differs from the testing distribution on which the classifier will be used to make predictions. Traditional methods correct the…

Going Green: Environment Protest, Policy and CO2 Emissions, in U.S. States, 1990-2007

John Munoz, Susan Olzak, Sarah A. Soule
June142018

A major goal of the environmental movement is to conserve or improve the natural environment, but evidence showing that environmental mobilization produces positive environmental outcomes is mixed. This paper addresses a fundamental question…

The Gender Earnings Gap in the Gig Economy: Evidence from over a Million Rideshare Drivers

Cody Cook, Rebecca Diamond, Jonathan Hall, John A. List, Paul Oyer
June72018

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 million rideshare drivers on Uber…

Sustaining Rainforests and Smallholders by Eliminating Payment Delay in a Commodity Supply Chain—It takes a Village

Joann F. de Zegher, Dan A. Iancu, Erica Plambeck
June2018

Millions of poor smallholder farmers produce global commodities, often through illegal deforestation. Multinational commodity buyers have committed to halt illegal deforestation and improve farmers’ livelihoods in their supply chains. We propose…

The Long-Term-Care Insurance Puzzle: Modeling and Measurement

John Ameriks, Joseph Briggs, Andrew Caplin, Matthew D. Shapiro, Christopher Tonetti
June2018

Individuals face significant late-in-life risks, including needing long-term care (LTC). Yet, they hold little long-term care insurance (LTCI). Using both “strategic survey questions,” which identify preferences, and stated demand questions, this…

The Big Thumb on the Scale: An Overview of the Proxy Advisory Industry

James Copland, David F. Larcker, Brian Tayan
May302018

Proxy advisory firms have significant influence over the voting decisions of institutional investors and the governance choices of publicly traded companies. However, it is not clear that the recommendations of these firms are correct and…

Promoting Consumption Experiences by Positive Incidental Affect: The Interplay of Valence and Arousal in Incidental Affect Infusion Processes

Aiqing Ling, Nathalie George, Baba Shiv, Hilke Plassmann
May252018

Much research in consumer psychology has investigated how affective reactions unrelated to a decision at hand (i.e., incidental affect) influence consumers’ preconsumption preferences. Most of this research has approximated the incidental affect…

Valuing Peace: The Effects of Financial Market Exposure on Votes and Political Attitudes

Saumitra Jha, Moses Shayo
May252018

Can participation in financial markets lead individuals to re-evaluate the costs of conflict, change their political attitudes and even their votes? Prior to the 2015 Israeli elections, we randomly assigned Palestinian and Israeli financial…

Inducing Exploration in Service Platforms

Kostas Bimpikis, Yiangos Papanastasiou
May222018

Crowd-sourced content in the form of online product reviews or recommendations is an integral feature of most Internet-based service platforms and marketplaces, including Yelp, TripAdvisor, Netflix, and Amazon. Customers may find such information…

Learning by Trading

Saumitra Jha, Moses Shayo
May222018

How can we help individuals handle financial decisions in an increasingly complex environment? We explore an easily scalable avenue for improving financial understanding: learning by online trading in stocks. We randomly assign 1345 adults…

Learning and Risk Premiums in an Arbitrage-free Term Structure Model

Marco Giacoletti, Kristoffer T. Laursen, Kenneth J. Singleton
May202018

We study the evolution of risk premiums on US Treasury bonds from the perspective of a real-time Bayesian learner RA who updates her beliefs using a dynamic term structure model. Learning about the historical dynamics of yields led to…

Netflix Approach to Governance: Genuine Transparency with the Board

David F. Larcker, Brian Tayan
May12018

The hallmark of good corporate governance is an independent board of directors to oversee management. However, it is not clear that independent directors receive the information they need to make fully informed decisions on all key matters.…

Do Banks have an Edge?

Juliane Begenau, Erik Strafford
May2018

We decompose bank activities into passive and active components and evaluate the performance of the active components of the bank business model by controlling for passive maturity transformation strategies that can be executed in the capital…

Making the Right Assignment: Optimal Contracting for Post-Hire Selection

Dana Foarta, Takuo Sugaya
April262018

We study the contracting problem of a principal who chooses between motivating an agent to exert effort or taking her outside option. The agent is privately informed about his ability, where a higher-ability agent faces a lower cost of exerting…

Local News and National Politics

Gregory J. Martin, Josh McCrain
April192018

The level of journalistic resources dedicated to coverage of local politics is in a long term decline in the US news media, with readership shifting to national outlets. We investigate whether this trend is demand- or supply-driven, exploiting a…

Estimating the Net Value of Treating Hepatitis C Virus Using a Newly Available Direct-Acting Antiviral in India

V. “Seenu” Srinivasan, David E. Bloom, Alexander Khoury
April182018