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.

Ilan Guttman, Iván Marinovic
January 20, 2017

Empirical and survey evidence suggest that firms often manipulate reported numbers to avoid debt covenant violations. The theoretical literature, by and large, has ignored the consequences of this phenomenon on debt contracting. Departing from a...

Susan Athey, Mark Mobius
January 11, 2017

A policy debate centers around the question whether news aggregators such as
Google News decrease or increase traffic to online news sites. One side of the debate, typically espoused by publishers, views aggregators as...

Peter C. Psarras, Praveen Bains, Panuya Charoensawadpong, Mark Carrington, Stephen Comello, Stefan J. Reichelstein, Jennifer Wilcox
January 2017

It is well documented that a concerted effort is required to reduce the threat of climate change. One vital component in this portfolio of solutions — carbon capture and utilization — has been stalled by...

Jess Benhabib, Jesse Perla, Christopher Tonetti
January 2017

We study how innovation and technology diffusion interact to endogenously determine the productivity distribution and generate aggregate growth. We model firms that choose to innovate, adopt technology, or produce with their existing technology. Costly adoption...

Susan Athey, Julie Tibshirani, Stefan Wager
January 2017

We propose a method for non-parametric statistical estimation, based on random forests (Breiman, 2001), that can be used to fit any heterogeneous parameter of interest identified as the solution to a set of local estimating...

Sebastian Di Tella, Pablo Kurlat
January 2017

We propose a model of banks’ exposure to movements in interest rates and their role in the transmission of monetary shocks. Since bank deposits provide liquidity, higher interest rates allow banks to earn larger spreads...

Jonathan B. Berk, Jules H. van Binsbergen
Adina Sterling, J. Perry-Smith

Preparing for submission

Santiago Balseiro, Yonatan Gur

In display advertising markets, advertisers often purchase ad placements through bidding in repeated auctions based on realized viewer information. We study how budget-constrained advertisers may compete in such sequential auctions in the presence of uncertainty...

Adina Sterling, C. Rider

Preparing for submission

Stephan Seiler, Song Yao

We assemble a unique dataset which combines information on supermarket feature advertising with path-tracking data on consumers’ movement within the store as well as purchase information. Using this novel data, we trace out how advertising...

Adina Sterling, R. Galperin, O. Hahl, J. Guo

Under Review, American Sociological Review

Elizabeth Blankespoor, Ed deHaan, John Wertz, Christina Zhu
Lisa De Simone, Jordan Nickerson, Jeri K. Seidman, Bridget Stomberg
December 16, 2016

Can common empirical tests reliably identify tax avoidance? This is an important question because our understanding of the determinants of tax avoidance largely depends on results generated using such tests. We seed Compustat data...

Dana Foarta, Takuo Sugaya
December 15, 2016

Why might a country choose a decentralized rather than a centralized regulatory structure? And what might reverse this choice? We consider a core institutional relationship in regulation. A regulator exerts effort towards a final outcome,...

Lisa De Simone, Lillian F. Mills, Bridget Stomberg
December 15, 2016

We use confidential Internal Revenue Service data on the magnitude of U.S.-foreign intercompany transactions to develop a measure of the likelihood that U.S. multinational entities (MNEs) shift income out of the U.S. Results show...

Elizabeth Pontikes, William P. Barnett
December 8, 2016

A coevolutionary perspective on knowledge strategy is developed, where variant positions in knowledge space are predicted to result in differential advantages in product space.  In particular, advantages to being both consistent and specialized in knowledge...

Yuliy Sannikov, Andrzej Skrzypacz
December 7, 2016

We build a linear-quadratic model to analyze trading in a market with private information and heterogeneous agents. Agents receive private taste/inventory shocks and trade continuously. Agents differ in their need for trade as well as...