Publications

Voters in U.S. elections receive markedly different representation depending on which candidate they elect, and because of incumbent advantages, the effects of this choice persist for many years. What are the long-term consequences of these two…

We show that financial knowledge is a key determinant of wealth inequality in a stochastic life cycle model with endogenous financial knowledge accumulation, where financial knowledge enables individuals to better allocate lifetime resources in a…

No abstract available

A basic tenet of microeconomics is that for a competitive industry in equilibrium the market price of a product will be equal to its marginal cost. This paper develops a model framework and a corresponding empirical inference procedure for…

Size discovery is the use of trade mechanisms by which large quantities of an asset can be exchanged at a price that does not respond to price pressure. Primary examples of size discovery include “workup” in Treasury markets, “matching sessions”…

The International Integrated Reporting Council’s Framework identifies two goals for integrated reporting: improved information for outside providers of financial capital and better internal decision making. We extend prior research that finds a…

Past research (along with our experience) suggests that a firm’s supply chain (i.e., value chain) plays an integral role in its ability to not only reduce cost via process innovation, but also in its ability to develop new products and services.…

Existing models of ambivalence suggest that as the number of conflicting reactions (e.g., attitude components) increases, so too does the experience of ambivalence. Interestingly, though, these models overwhelmingly assume that this relationship…

This research explores how the experience of a jilt — the anticipation and subsequent inaccessibility of a highly desirable, aspirant option — influences preference for incumbent and non-incumbent options. We conceptualize jilting as a multi-…

Many observers consider the most important responsibility of the board of directors its responsibility to hire and fire the CEO. To this end, an interesting situation arises when a CEO resigns and the board chooses neither an internal nor…

We propose a new measure of the economic importance of each innovation. Our measure uses newly collected data on patents issued to U.S. firms in the 1926 to 2010 period, combined with the stock market response to news about patents. Our patent-…

How can mortgages be redesigned to reduce housing market volatility, consumption volatility, and default? How does mortgage design interact with monetary policy? We answer these questions using a quantitative equilibrium life cycle model with…

We find the value relevance of accounting information has increased between 1962 and 2014. The information we consider comprises twelve accounting amounts plus ten industry indicators. Regarding individual accounting amounts, we find that…

Cultural fit is widely believed to affect the success of individuals and the groups to which they belong. Yet it remains an elusive, poorly measured construct. Recent research draws on computational linguistics to measure cultural fit but…

Salient successes and failures, such as spectacular venture capital investments or agonizing bankruptcies, affect collective beliefs about the viability of particular markets. We argue that collective sense-making in the wake of such vital events…

This study finds that greater asymmetric timeliness of earnings is associated with slower resolution of investor disagreement and uncertainty at earnings announcements. These findings indicate that a potential cost of asymmetric timeliness is…

The boards of all publicly traded companies are required to conduct a self-evaluation at least annually to determine whether they are functioning effectively. Research suggests that while many directors are satisfied with the job that they and…

This Research Spotlight provides a summary of the academic literature on CEO pay levels in the United States. It reviews the evidence of:

• Long-term trends in the CEO compensation
• The relation between CEO compensation and…

We study the rise of fintech and non-fintech shadow banks in the residential lending market. The market share of shadow banks in the mortgage market has nearly tripled from 2007-2015. Shadow banks gained a larger market share among less…