Economics
How best to incentivise prompt disclosure? We study this question in a general model in which a technological breakthrough occurs at an uncertain time and is privately observed by an agent, and a principal must incentivise disclosure via…
We study an infinite-horizon optimal investment, consumption and insurance problem for an economic agent who consumes a perishable and a durable good. The agent trades in a risk-free asset, a risky asset, and a durable good whose price…
This paper surveys and generalizes the main valuation formulas used in real estate valuation and presents unified proofs. The results are otherwise scattered in obscure journals and books while the proofs are rarely available to researchers…
The adoption of generative artificial intelligence (AI) is predicted to lead to fundamental shifts in the labour market, resulting in displacement or augmentation of AI-exposed roles. To investigate the impact of AI across a large…
How should taxes on externality-generating activities be adjusted if they are regressive? In our model, the government raises revenue using distortionary income and commodity taxes. If more or less productive people have identical tastes…
We analyze how an incumbent antibiotic monopolist responds to the threat of post-entry Bertrand competition by a vertically differentiated rival. In a two-period model where current production drives future resistance, Bertrand competition…
The divergence in globalization strategies between the US (retrenchment and polarization) and China (expansion) presents a puzzle that traditional distributional theories fail to fully explain. This paper offers a novel framework by…
This paper examines the relationship between trade and financial openness, as well as the operational efficiency and growth of Turkish banks, from 2010 to 2023. Utilizing CAMELG-DEA and dynamic panel data analysis, the study finds that…
We analyze a novel large-scale social-media-based measure of U.S. job satisfaction, constructed by applying a fine-tuned large language model to 2.6 billion georeferenced tweets, and link it to county-level labor market conditions…
We study the health consequences of redistributing political power through the 1975 extension of the Voting Rights Act, which eliminated barriers to voting for previously disenfranchised nonwhite populations. The intervention led to broad…
Traditional optimal commodity tax analysis, dating back to Ramsey (1927), prescribes that to maximize welfare one should impose higher taxes on goods with lower demand elasticities. Yet policy makers do not stress minimizing efficiency…
A common practice in evidence-based decision-making uses estimates of conditional probabilities P(y|x) obtained from research studies to predict outcomes y on the basis of observed covariates x. Given this information, decisions are then…
Large language models (LLMs) enable researchers to analyze text at unprecedented scale and minimal cost. Researchers can now revisit old questions and tackle novel ones with rich data. We provide an econometric framework for realizing this…
A panel dataset satisfies marginal homogeneity if the time-specific marginal distributions are homogeneous or time-invariant. Marginal homogeneity is relevant in many economic settings, including dynamic discrete games,…
Residential solar photovoltaic (PV) systems are a cornerstone of residential decarbonization and energy resilience. However, most existing systems are PV-only and cannot provide backup power during grid failures. Here, we present a…
Why do firms produce scientific research and make it available to the public, including their rivals? Prior literature has emphasized the tension between imitation risks from disclosure and scientists' preferences for publication. This…
We explore the challenges and opportunities of transitioning towards sustainable food systems through the lens of democratic food governance fostering inclusive and systemic transformation. Drawing on concepts of wicked problems and systems…
Precision matrix estimation is a cornerstone concept in statistics, economics, and finance. Despite advances in recent years, estimation methods that are simultaneously (i) dense, (ii) consistent, and (iii) model-free are lacking. While…
In democracies, major policy decisions typically require some form of majority or consensus, so elites must secure mass support to govern. Historically, elites could shape support only through limited instruments like schooling and mass…
Equilibrium predictions in games of incomplete information are sensitive to the assumed information structure. Monderer and Samet (1996) and Kajii and Morris (1998) define topological notions of proximity for common prior information…