Publications

CEO compensation is a highly controversial subject. While most company directors believe that CEO pay is not a problem, the majority of the American public believes that it is. The difficulties that boards face in justifying CEO pay levels in…

Prominent theories suggest that compulsive behaviors, characteristic of obsessive compulsive disorder and addiction, are driven by shared deficits in goal-directed control, which confers vulnerability for developing rigid habits. However, recent…

Compared to the predictions of complete market models, actual exchange rates are puzzlingly smooth and only weakly correlated with macro-economic fundamentals, suggesting that market incompleteness plays a key role in exchange rate dynamics.…

We construct a novel database containing the universe of financial advisers in the United States from 2005 to 2015, representing approximately 10% of employment of the finance and insurance sector. We provide the first large-scale study that…

We extend the CAPM to a setting where a firm reports earnings prior to selling shares to investors. We show that an entrepreneur, as representative of a firm’s initial owners, will choose to report earnings that asymmetrically reflect future cash…

CEO compensation is a highly controversial subject. While most company directors believe that CEO pay is not a problem, the majority of the American public believes that it is. The difficulties that boards face in justifying CEO pay levels in…

Facebook has become a significant part of daily life for nearly 1.4 billion people worldwide. While many researchers have explored Facebook’s influence on individuals and societies, its potential as a powerful research tool has been largely…

In this paper we introduce a new computationally tractable framework for Ericson and Pakes (1995)- style dynamic oligopoly models that overcomes the computational complexity involved in computing Markov perfect equilibrium (MPE). First, we define…

We show that firms’ individually optimal liquidity management results in socially inefficient boom-and-bust patterns. Financially constrained firms decide on the level of their liquid resources facing cash-flow shocks and time-varying investment…

Propensity score matching estimators (Rosenbaum and Rubin (1983)) are widely used in evaluation research to estimate average treatment effects. In this article, we derive the large sample distribution of propensity score matching estimators. Our…

I consider the monopolistic pricing of informational good. A buyer’s willingness to pay for information is from inferring the unknown payoffs of actions in decision-making. A monopolistic seller and the buyer each observes a private signal about…

Can innovation among micro-entrepreneurs in South Africa teach global corporations a lesson? Rajesh Chandy, Stephen Anderson-Macdonald and Bilal Zia reckon so.

The Legends in Consumer Behavior series captures the essence of the most important contributions made in the field of consumer behavior in the past several decades. It reproduces the seminal works of legends in the field, which are supplemented…

From 1980 to 2000, the rise in the US college/high school graduate wage gap coincided with increased geographic sorting as college graduates concentrated in high wage, high rent cities. This paper estimates a structural spatial equilibrium model…

Solar photovoltaic (PV) installations in the United States have been deployed at a rapid pace in recent years, a development that is attributed in significant part to the federal Investment Tax Credit (ITC). Yet, this credit is scheduled to step-…

Courts resolve individual disputes and create principles of law to justify their decisions and guide the resolution of future cases. Those tasks present informational challenges that affect the whole judicial process. Judges must simultaneously…

Polygeneration energy systems (PES) have the potential to provide a flexible, high-efficiency, and low-emissions alternative for power generation and chemical synthesis from fossil fuels. This study aims to assess the economic value of fossil-…

We evaluate the effects of the 2009 Home Affordable Modification Program (HAMP) that provided intermediaries with sizeable financial incentives to renegotiate mortgages. HAMP increased intensity of renegotiations and prevented substantial number…

We study a Bayesian persuasion game in the context of real options. The Sender (firm) chooses signals to reveal to the Receiver (regulator) each period but has no long-term commitment power. The Receiver chooses when to exercise the option,…