Working Papers

A solution concept that is a refinement of Nash equilibria selects for each finite game a nonempty collection of closed and connected subsets of Nash equilibria as solutions. We impose three axioms for such solution concepts. The axiom of…

Companies across industries face increasing pressure to assess the costs of decarbonizing their operations. This paper develops a generic model for constructing abatement cost curves in connection with carbon dioxide emissions. The resulting…

Artists and policy makers are concerned that Generative Artificial Intelligence (GenAI) may lead to disappearance of non-GenAI content. In this paper we study the implications of GenAI for the production and consumption of creative goods; such as…

Geoeconomics is the use of a country’s economic strength to exert influence on foreign entities to achieve geopolitical or economic goals. We discuss how concepts of power in the political science and economics literature can be used to guide…

Converting public information into stock picks is unlikely to be costless, yet the magnitude of public information processing costs is unknown. We quantify extra-marginal information costs for mutual fund managers by building an “AI analyst” that…

Individuals frequently perceive a tradeoff between health and taste, leading to poor dietary choices. This research identifies a novel pathway to healthier eating by harmonizing seemingly conflicting goals: seeking beauty in food. Across seven…

Empirical research in economics often examines the behavior of agents located in a geographic space. In such cases, statistical inference is complicated by the interdependence of economic outcomes across locations. A common approach to account…

In this overview piece, I review the literature and identify important directions for how developing societies can break out of such ethnic growth traps and instead leverage the gains that can often be had from ethnic diversity. To do this…

What can we learn from the high-frequency responses in bond and currency markets to the recent tariff announcement about the status of the U.S. dollar as the global reserve currency? The dollar depreciated by 3.4% after April 4 in spite of rising…

Allocating capital to investment projects is one of a manager’s most critical responsibilities. However, such decisions are shaped by managers’ own beliefs and risk preferences, which can differ from those of diversified shareholders. To study…

We develop a model of disclosure timing in which the firm can commit to disclose its revenues at a fixed date (a time-based disclosure policy) or after a certain number of transactions have occurred (a news arrival-based disclosure policy). We…

Hegemonic powers, like the United States and China, exert influence on other countries by threatening the suspension or alteration of financial and trade relationships. Mechanisms that generate gains from integration, such as external economies…

Motivated by the disconnect between regulatory discussions and industry reports on voluntary sustainability investments, we examine the market equilibrium for sustainable products in the absence of regulation, focusing on firms’ strategic…

We examine whether access to specialized business courts that are more proficient in resolving contractual disputes influences the design of firms’ supply contracts. We use the staggered creation of these courts in different states at different…

Using data from TransUnion, a large U.S. credit bureau, we analyze whether and how cuts in bank income taxation are passed through to the interest rates and size of consumer loans. Exploiting the change in bank corporate income taxation from the…

We document the growth of retail options trading and provide evidence that retail investors are drawn to options by anticipated spikes in volatility. Retail investors purchase options in a concentrated fashion before earnings announcements,…

We examine the spillover effects of public firm disclosures on patent licensing, a key mechanism for technology diffusion. An interquartile increase in public firm presence, our proxy for peer disclosures, is linked to a 20.7% higher likelihood…

Effective information sharing is critical for the success of organizations and governments. Because information that is easy to access is more likely to be adopted, leaders often minimize friction in information delivery. However, one type of…

Geoeconomic pressure—the use of existing economic relationships by governments to achieve geopolitical or economic goals—is a prominent feature of global power dynamics. This paper introduces a methodology using large language models (LLMs) to…

We study the impact of Generative Artificial Intelligence (GenAI) in Chile, focusing on opportunities for task acceleration-specifically, the reduction of execution time for tasks within the hundred most common jobs in the country, corresponding…