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.

SSRN Research Paper Series

The Social Science Research Network’s Research Paper Series includes working papers produced by Stanford GSB the Rock Center.

You may search for authors and topics and download copies of the work there.

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Financial Flexibility and Corporate Employment

Rebecca Lester, Ethan Rouen, Braden Williams
April2021

We study the role of financial flexibility on COVID-19 employment actions. Using daily data from March through May 2020 for 354 of the largest U.S. employers, we find that firms facing a negative demand shock were 28.8 percentage points more…

Interference, Bias, and Variance in Two-Sided Marketplace Experimentation: Guidance for Practitioners

Hannah Li, Geng Zhao, Ramesh Johari, Gabriel Weintraub
April2021

Two-sided marketplace platforms often run experiments to test the effect of an intervention before launching it platform-wide. A typical approach is to randomize individuals into the treatment group, which receives the intervention, and the…

Redrawing the Map of Global Capital Flows: The Role of Cross-Border Financing and Tax Havens

Antonio Coppola, Matteo Maggiori, Brent Neiman, Jesse Schreger
April2021

Cross-border capital flows are often opaque. Global firms commonly finance themselves through foreign subsidiaries, including shell companies in tax havens, making it difficult to observe the true economic linkages between investors and borrowers…

The Effects of the Affordable Care Act on Agricultural Workers

Kwabena Baah Donkor, Jeffrey M. Perlof, Susan Gabbard
March192021

The Affordable Care Act substantially increased the share of farmworkers with medical insurance, but it had little effect on employer-provided benefits, including health care insurance. Eligible workers with pre-existing health conditions…

Financial and Total Wealth Inequality with Declining Interest Rates

Daniel Greenwald, Matteo Leombroni, Hanno Lustig, Stijn Van Nieuwerburgh
March2021

Financial wealth inequality and long-term real interest rates track each other closely over the post-war period. Faced with lower returns on financial wealth, households with high levels of financial wealth must increase savings to afford the…

Fraudulent Financial Reporting and the Consequences for Employees

Jung Ho Choi, Brandon Gipper
March2021

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…

Informative Activism vs. Lobbying

Georgy Egorov, Bård Harstad
March2021

Both the market and the regulator have incomplete information regarding the products’ characteristics, but non-governmental organizations or activists often have expertise or motivation to investigate and acquire more information. Negative…

A Kinky Consistency: Experimental Evidence of Behavior Under Linear and Non-Linear Budget Sets

Emiliano Huet-Vaughn, Ethan M. L. McClure, Juan Carlos Suárez Serrato
March2021

Individuals face non-linear budget constraints in myriad situations. We test a fundamental assumption of economic analysis in such settings: that individuals display stable preferences when facing linear and non-linear incentives. We use a…

Margin Trading and Leverage Management

Jiangze Bian, Zhi Da, Zhiguo He, Dong Lou, Kelly Shue, Hao Zhou
March2021

We use granular data covering regulated (brokerage-financed) and unregulated (shadow-financed) margin trading during the 2015 market turmoil in China to provide the first systematic analysis of margin investors’ characteristics, leverage…

Platform Annexation

Susan Athey, Fiona Scott Morton
March2021

The article offers information about the platform annexation, and the logic using basic principles from platform economics. It analyzes the platform annexation to the traditional antitrust categories in the market. It mentions that a platform…

What Determines the Government’s Funding Costs when r=g? Unpleasant Fiscal Asset Pricing Arithmetic

Zhengyang Jiang, Hanno Lustig, Stijn Van Nieuwerburgh, Mindy Z. Xiaolan
March2021

Using MBA textbook finance, we look at three simple examples to illustrate why the r-g measure of the fiscal cost of deficits is incomplete. We start by considering the case of risky government debt. Second, we consider the case of risk-free debt…

Adapting to Misspecification in Contextual Bandits with Offline Regression Oracles

Sanath Kumar Krishnamurthy, Vitor Hadad, Susan Athey
February262021

Computationally efficient contextual bandits are often based on estimating a predictive model of rewards given contexts and arms using past data. However, when the reward model is not well-specified, the bandit algorithm may incur unexpected…

Uncovering Interpretable Potential Confounders in Electronic Medical Records

Jiaming Zeng, Michael F. Gensheimer, Daniel L. Rubin, Susan Athey, Ross D. Shachter
February172021

In medicine, randomized clinical trials are the gold standard for informing treatment decisions. Observational comparative effectiveness research is often plagued by selection bias, and expert-selected covariates may not be sufficient to adjust…

Trading Stocks Builds Financial Confidence and Compresses the Gender Gap

Saumitra Jha, Moses Shayo
February92021

Many studies document low rates of financial literacy and suboptimal levels of participation in financial markets. These issues are particularly acute among women. Does this reflect a self-reinforcing trap? If so, can a nudge to participate in…

Preparing for a Pandemic: Accelerating Vaccine Availability

Amrita Ahuja, Susan Athey, Arthur Baker, Eric Budish, Juan Camilo Castillo, Rachel Glennerster, Scott Duke Kominers, Michael Kremer, Jean Lee, Canice Prendergast, Christopher M. Snyder, Alex Tabarrok, Brandon Joel Tan, Witold Wiecek
January302021

Vaccinating the world’s population quickly in a pandemic has enormous health and economic benefits. We analyze the problem faced by governments in determining the scale and structure of procurement for vaccines. We analyze alternative approaches…

When Dad Can Stay Home: Fathers’ Workplace Flexibility and Maternal Health

Petra Persson, Maya Rossin-Slater
January222021

We study how fathers’ access to workplace flexibility affects maternal postpartum health. We use variation from a Swedish reform that granted new fathers more flexibility to take intermittent parental leave during the postpartum period and…

Government and Private Household Debt Relief During Covid-19

Susan Cherry, Erica Xuewei Jiang, Gregor Matvos, Tomasz Piskorski, Amit Seru
January192021

We follow a representative panel of US borrowers to study the suspension of household debt payments (debt forbearance) during the COVID-19 pandemic. Between March and October of 2020, loans worth $2 trillion entered forbearance. On average,…

Quantifying U.S. Treasury Investor Optimism

Zhengyang Jiang, Hanno Lustig, Stijn Van Nieuwerburgh, Mindy Z. Xiaolan
January192021

When the government commits to a debt policy, the future value of government primary surpluses at all horizons is dictated by the debt dynamics under the risk-neutral measure. We compare the present discounted value of future surpluses implied by…

Family Spillover Effects of Marginal Diagnoses: The Case of ADHD

Petra Persson, Xinyao Qiu, Maya Rossin-Slater
January52021

The health care system commonly relies on information about family medical history in the allocation of screenings and in diagnostic processes. At the same time, an emerging literature documents that treatment for “marginally diagnosed”…

Analyst Forecast Revision Consistency and Bias in Earnings Forecast Revisions

Mary E. Barth, Wayne R. Landsman, Vivek Raval, Sean Wang
January2021

We address whether analysts bias earnings forecast revisions and convey the bias using forecast revision consistency, i.e., the extent to which analyst reports with earnings forecast revisions include stock recommendation and target price…