Publications

Using granular data covering both regulated (brokerage-financed) and unregulated (shadowfinanced) margin accounts in China, we provide novel evidence on retail investors’ margin trading behavior and its price implications. First, we show that…

Companies in various industries are under growing pressure to assess the costs of decarbonizing their operations. This paper develops a generic abatement cost concept to identify the cost-efficient combination of technological and operational…

The CBO cost releases of legislative proposals contain valuable news about surpluses priced in by Treasury investors. Using daily event windows, we find that cost releases with large negative cash flows lowered Treasury valuations by more than 20…

We explore the consequences of global capital market segmentation by currency for the optimal currency composition of borrowing by firms. Global bond portfolios are driven by the currency of denomination of assets as investors prefer to lend in…

We examine whether investors value workforce gender diversity. Consistent with the view that investors believe workforce gender diversity can be valuable in major firms, we use event studies to demonstrate that U.S. technology firms and financial…

Our field study of new business development in a German-based global pharmaceutical company reveals that the emergence of co-selection bias in project-level state-gate resource allocation engendered a corporate-level innovation portfolio…

The rapidly growing number of lithium-ion battery packs deployed in electric vehicles (EVs) entails enormous economic potential for used EV batteries to be redeployed in a second life application, e.g., for behind-the-meter stationary energy…

Unfunded fiscal shocks are a significant source of risk premia in Treasury markets when central banks and governments decide to insulate taxpayers and expose bondholders’ wealth to government funding needs. We illustrate this bond risk premium…

We combine U.S. Census data with SEC enforcement actions to examine employees’ outcomes, such as wages and turnover, before, during, and after periods of fraudulent financial reporting. We find that fraud firms’ employees lose about 50% of…

The growing popularity of generative AI tools presents new challenges for data quality in online surveys and experiments. This study examines participants’ use of large language models to answer open-ended survey questions and describes empirical…

We survey the literature on global capital allocation. We begin by reviewing the rise of cross-border investment, the shift toward portfolio investment, and the literature focusing on aggregate patterns in multilateral and bilateral positions. We…

Governments and central banks can protect either taxpayers or bondholders from government spending shocks. When they choose to insulate taxpayers, government bond yields need to increase in response to unfunded fiscal expansions as the government…

Emerging evidence suggests that gender is a defining feature of personhood. Studies show that gender is the primary social category individuals use to perceive humanness and the social category most strongly related to seeing someone — or…

Individuals face nonlinear incentives in myriad situations. We test a fundamental assumption in such settings: that individuals display stable preferences when facing linear and nonlinear incentives. We use a laboratory experiment to characterize…

Individuals who have more ambition — a persistent striving for success, attainment, and accomplishment — are more likely to become leaders. But are these ambitious individuals also more effective in leadership roles? We hypothesize that…

Sharing experiences with racism (racial discrimination disclosure) has the power to raise awareness of discrimination and spur meaningful conversations about race. Sharing these experiences with racism on social media may prompt a range…

How does the extent of policy benefits — not simply their presence — affect political engagement? While fundamental to understanding the electoral implications of economic policymaking, addressing this question is challenging due to the…

In a wide variety of applications, including healthcare, bidding in first price auctions, digital recommendations, and online education, it can be beneficial to learn a policy that assigns treatments to individuals based on their characteristics…

We study how international agreements can take advantage of domestic time-inconsistency problems in the context of environmental policies. For example, policymakers will prefer future policies to be sustainable, but find it tempting to raise…

Why are there few debates in low-information elections where they have the greatest potential to inform vote choices? Consistent with weak incentives to reveal qualifications or make policy commitments, we find only a quarter of Parliamentary…