Working Papers

Debt relief is unlikely to stimulate investment and growth in the worlds highly indebted poor countries (HIPCs). This is because the HIPCs do not suffer from debt overhang. The principal obstacle to investment and growth in the worlds poorest…

Supply chain security has become a major concern to the private and public sector, after the disastrous event of September 11, 2001. Prior to September 11, 2001, supply chain security concerns were related to controlling theft and reducing…

This paper uses daily fund flow data to examine the extent of late trading in the mutual fund industry. Using data from a 10-15 percent subsample of the industry, I find annual long-term shareholder losses due to late trading of about 5 basis…

This paper analyzes the determinants of the cross-national adoption of the international Environmental Management System standard ISO 14001 using a panel of 102 countries from 1996 to 2000. I use new institutional economics to develop hypotheses…

This paper analyzes the effects of business cycle volatility on measures of subjective well-being, including self-reported happiness and life satisfaction. I find robust evidence that high inflation and, to a greater extent, unemployment lower…

When Less Developed Countries (LDCs) announce debt relief agreements under the Brady Plan, their stock markets appreciate by an average of 60 percent in real dollar terms, a $42 billion increase in shareholder value. In contrast, there is no…

The use of modern microeconomics in policy is illustrated by the markets for spectrum, electricity, greenhouse-gas reductions, defense procurement, and Treasury bills. Further examples are antitrust divestiture rules, market-based redistribution…

We analyze a multiproduct duopoly and ask whether firms should offer general purpose products or tailor their offerings to fit specific consumer needs. There are two effects of offering a targeted product: (i) if a consumers favorite product is…

We develop a model in which firms set their salary levels before matching with workers. Wages fall relative to any competitive equilibrium while profits rise almost as much, implying little inefficiency. Furthermore, the best firms gain the most…

Consider a high-volume assemble-to-order system with multiple products and components in which component production can be expedited at some additional cost. The objective is to maximize expected discounted profit subject to assembling orders…

This study investigates the relation between share price and stock-based compensation expense that is disclosed but not recognized under SFAS 123, after controlling for net income, equity book value, and expected earnings growth. Our instrumental…

In an assemble-to-order system, a wide variety of products are rapidly assembled from component inventories, in response to customer orders. Orders must be filled within a product-specific target leadtime. In the event that some of the…

This paper proposes that strategy-making processes can be fruitfully integrated with evolutionary organization theory. An evolutionary research lens comprising three interrelated conceptual frameworks helps identify and analyze the role of…

This chapter explains the logic of structural econometric models and compares them to other types of econometric models. We provide a framework researchers can use to develop and evaluate structural econometric models. This framework pays…

Consider a firm that is developing a highly innovative product. Producing the product requires that an upstream supplier invest in production capacity well in advance. Because the product is ill-defined at the time when the supplier initiates his…

Providing explicit instructions to compare one option to other (reference) options is one of the most basic and commonly used promotional and persuasion tactics. Building on prior research on persuasion knowledge and the impact of suspicion, we…

Paragraph IV of the Hatch-Waxman Act provides a mechanism for the litigation of pharmaceutical patent infringement disputes. Many of these cases have been settled with reverse payments by the brand to the generic in return for delayed generic…

Motivated by a $2.2 billion inventory write-off by Cisco Systems, we investigate how duplicate orders can lead a manufacturer to err in estimating the demand rate and customers’ sensitivity to delay, and to make faulty decisions about capacity…

Over the past few years, customer relationship management and loyalty programs (LPs) have been widely adopted by companies and have received a great deal of attention from marketers, consultants, and, to a lesser degree, academics. In this…

Debt relief is unlikely to stimulate investment and growth in the nations being considered for debt relief under the highly indebted poor countries (HIPCs) initiative. This is because the HIPCs do not suffer from debt overhang. The principal…