New: Discrete Homotopy Analysis for Optimal Trading Execution with Nonlinear...
Optimal execution in financial markets is the problem of how to trade a large quantity of shares incrementally in time in order to minimise the expected cost. In this paper we study the problem of the...
View ArticleLearning from Potentially-Biased Statistics: Household Inflation Perceptions...
When forming expectations, households may be influenced by the possibility that the information they receive is biased. In this paper, we study how individuals learn from potentially-biased statistics...
View ArticleThe Labor Supply of Undocumented Immigrants -- by George J. Borjas
The Department of Homeland Security estimates that 11.4 million undocumented persons reside in the United States. Congress and President Obama are considering a number of proposals to regularize the...
View ArticleManagement Practices, Workforce Selection and Productivity -- by Stefan...
Recent research suggests that much of the cross-firm variation in measured productivity is due to differences in use of advanced management practices. Many of these practices - including monitoring,...
View ArticleMoney and Velocity During Financial Crises: From the Great Depression to the...
This study offers a single, consistent model that tracks the velocity of broad money (M2) since 1929, including the Great Depression, the global financial crisis, and the Great Recession. The model...
View ArticleA Glimpse into the World of High Capacity Givers: Experimental Evidence from...
The wealthiest 10% of donors now give 90% of charitable dollars in the U.S., but little is known about what motivates them. Using a natural field experiment on over 5,000 high capacity donors, we find...
View ArticleIdentification and Efficiency Bounds for the Average Match Function under...
Consider two heterogenous populations of agents who, when matched, jointly produce an output, Y. For example, teachers and classrooms of students together produce achievement, parents raise children,...
View ArticleOptimal Currency Area: A 20th Century Idea For the 21st Century? -- by Joshua...
This paper takes stock of the history of the European Monetary Union (EMU) and pegged exchange-rate regimes in recent decades, pointing out the need to reshape the optimal currency area (OCA) criteria...
View ArticleMacroeconomic-Driven Prepayment Risk and the Valuation of Mortgage-Backed...
We introduce a reduced-form modeling framework for mortgage-backed securities in which we solve for the implied prepayment function from the cross section of market prices. From the implied prepayment...
View ArticleThe State of American Entrepreneurship: New Estimates of the Quantity and...
While official measures of business dynamism have seen a long-term decline, early-stage venture financing of new companies has reached levels not observed since the late 1990s, resulting in a sharp...
View ArticleThree-generation Mobility in the United States, 1850-1940: The Role of...
This paper estimates intergenerational elasticities across three generations in the United States in the late 19th and early 20th centuries. We extend the methodology in Olivetti and Paserman (2015) to...
View ArticleOrganized Crime, Violence, and Politics -- by Alberto Alesina, Salvatore...
We investigate how criminal organizations strategically use violence to influence elections in order to get captured politicians elected. The model offers novel testable implications about the use of...
View ArticleAn Input-Output Model of the U.S. Economy with Pollution Externality -- by...
Input-output (I-O) analysis represents the flows of goods and services within the market. Environmentally-extended I-O (EEIO) models include flows of both pollution and consumption of resources and...
View ArticleHow Management Risk Affects Corporate Debt -- by Yihui Pan, Tracy Yue Wang,...
Management risk occurs when uncertainty about future managerial decisions increases a firm's overall risk. This paper argues that management risk is an important yet unexplored determinant of a firm's...
View ArticleRevenue and Incentive Effects of Basis Step-Up at Death: Lessons from the...
In 2010, the U.S. estate tax expired and executors of wealthy decedents were not required to file estate tax returns. In the absence of the estate tax, beneficiaries received assets with carryover...
View ArticleWhy Does Fast Loan Growth Predict Poor Performance for Banks? -- by Ruediger...
From 1973 to 2014, the common stock of U.S. banks with loan growth in the top quartile of banks over a three-year period significantly underperforms the common stock of banks with loan growth in the...
View ArticleEfficient Local Government Service Provision: The Role of Privatization and...
Local governments spend roughly $1.6 trillion per year to provide a variety of public services ranging from police and fire protection to public schools and public transit. However, we know little...
View ArticleThe Design of Trade Agreements -- by Kyle Bagwell, Robert W. Staiger
What does economics have to say about the design of international trade agreements? We review a literature on this question, providing detailed coverage on three key design features of the GATT/WTO:...
View ArticleAccounting for the New Gains from Trade Liberalization -- by Chang-Tai Hsieh,...
We measure the "new" gains from trade reaped by Canada as a result of the Canada-US Free Trade Agreement (CUSFTA). We think of the "new" gains from trade of a country as all welfare effects pertaining...
View ArticleNasdaq Agrees To Acquire Boardvantage
Nasdaq, Inc. (Nasdaq:NDAQ) today announced that it has entered into a definitive agreement to acquire Boardvantage, a leading board portal solution provider which also specializes in leadership...
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