Publications

Research indicates that, among women and ethnic minorities, perceived inequality reduces the association between self-esteem and academic outcomes. The present studies demonstrate that the perception of social inequality does not always induce…

This paper presents evidence that when an analyst makes an out-of-consensus forecast of a company’s quarterly earnings that turns out to be incorrect, she escalates her commitment to maintaining an out-of-consensus view on the company. Relative…

This article proposes an asset allocation policy that adapts to market movements by taking into account changes in the outstanding market values of major asset classes. Such a policy considers important information, reduces or avoids…

The governance structure of Berkshire Hathaway is remarkably different from that of other corporations, and most of its features do not conform to the “best practices” recommended by experts. Why is this an important exception, and what can it…

This study examines whether Chief Executive Officer (CEO) equity-based holdings and compensation provide incentives to manipulate accounting reports. While several prior studies have examined this important question, the empirical evidence is…

This article develops a rich class of discrete-time, nonlinear dynamic term structure models (DTSMs). Under the risk-neutral measure, the distribution of the state vector Xt resides within a family of discrete-time affine processes that…

This paper explores information disclosure in matching markets. A school may suppress some information about students in order to improve their average job placement. We consider a setting with many schools, students, and jobs, and show that if…

In recent years, RiskMetrics has played an influential role in the proxy voting process. Several companies, however, are critical of the methodology it uses to inform its recommendations, particularly with regards to equity compensation. Is it…

We use an innovative methodology to measure management practices in over 300 manufacturing firms in the UK. We then match this management data to production and energy usage information for establishments owned by these firms. We find that…

The past decade has seen the explosive emergence of online advertising as a major source of revenue for Internet publishers. Analyses of this phenomenon are mostly conducted in the sway of Google’s hugely successful search advertising program. In…

In this paper, we prove the optimality of disturbance-affine control policies in the context of one-dimensional, constrained, multistage robust optimization. Our results cover the finite-horizon case, with minimax (worst-case) objective,…

The likelihood that a bank loan will default is of interest to both regulators and investors. Under the Basel II regulatory guidelines, a bank must hold capital in proportion to the riskiness of its assets. The probability of default is a primary…

We investigate whether the removal of high-cost individuals from private insurance markets leads to greater coverage for individuals who are similar but not as high cost. Using data on insurance coverage from the Panel Study of Income Dynamics,…

In this paper, we explore the hypothesis that an important force behind the collapse in advertising revenue experienced by newspapers over the past decade is the greater consumer switching facilitated by online consumption of news.…

We show that in repeated interactions the avenues for effective provision of incentives depend crucially on the type of information players observe. We establish this conclusion for general repeated two-player games in which information arrives…

This article examines the possibilities for health care reform in the 111th Congress. It uses a simple model of policy making to analyze the failure of Congress to pass the Clinton health plan in 1993-1994. It concludes that the factors that…

This research explores the effect of source certainty—that is, the level of certainty expressed by a message source—on persuasion. The authors propose an incongruity hypothesis, suggesting that source certainty effects depend on perceived source…

Reprinted in Voprosy Economiki (in Russian), Volume 1, 2012.

The field of industrial organization has made dramatic advances over the last few decades in developing empirical methods for analyzing imperfect competition and the…

We construct a new data set of consumption and income data for the largest US metropolitan areas, and we show that the extent of risk-sharing between regions varies substantially over time. In times when US housing collateral is scarce nationally…