Economics
This paper studies the macroeconomic impact of economic freedom on foreign direct investments inflows in both global and regional panel analyses involving 156 countries through the period of 1995-2016. Unlike to prior literature, it…
This paper examines the fiscal and macroeconomic strategies essential for transition of India to a high income economy by 2047, aligning with the vision of Viksit Bharat. A sustainable annual GDP growth rate of 7 to 8 percent is projected…
When players make sequential decisions that are unobservable to one another, their behavior can nonetheless be influenced by knowing who moves first. This sequential structure, often referred to as "virtual observability," suggests that…
We examine the role of cybercrime legislation around the world in shaping the stability of the banking system. We compile a novel dataset covering the enactment of cybercrime legislation in 132 developed and developing countries to…
This paper studies how shocks to global banks' net worth transmit to Emerging Market Economies. Using the identification strategy of Ottonello and Song (2022), which isolates high-frequency surprises to banks' credit supply capacity, we…
We study misspecified Bayesian learning in principal-agent relationships, where an agent is assessed by an evaluator and rewarded by the market. The agent's outcome depends on their innate ability, costly effort -- whose effectiveness is…
The rapid expansion of digital commerce platforms has amplified the strategic importance of coordinated pricing and inventory management decisions among competing retailers. Motivated by practices on leading e-commerce platforms, we analyze…
This paper provides a novel summary measure of ideological polarization in the American public based on the joint distribution of survey responses. Intuitively, polarization is maximized when views are concentrated at opposing extremes with…
A profit-maximizing monopolist curates a database for users seeking to learn a parameter. There are two user types: "Nowcasters" wish to learn the parameter's current value, while "forecasters" target its long-run value. Data storage…
The Millennium Challenge Corporation (MCC), started in 2004 by the United States Congress, focuses on development initiatives involving good governance, sustainable economic growth, and poverty reduction. Since its inception, it has…
Macroeconomic nowcasting sits at the intersection of traditional econometrics, data-rich information systems, and AI applications in business, economics, and policy. Machine learning (ML) methods are increasingly used to nowcast quarterly…
This paper is an exposition of how BRIDGE and adaptive LASSO can be used in a two-stage least squares problem, to estimate the second-stage coefficients when the number of parameters p in both stages is growing with the sample size n.…
Our work investigates the economic efficiency of the prevailing "ladder-step" investment strategy in oil and gas exploration, which advocates for the incremental acquisition of geological information throughout the project lifecycle. By…
We investigate the extent to which groups with elevated mortality rates ex ante might opt out of guaranteed national pensions in favour of demographically aligned plans, which we label equitable longevity risk sharing (ELRiS) pools, even if…
This study investigates how the layout and seat density in aircraft cabins influence the pricing of airline tickets on domestic flights. The analysis is based on microdata from boarding passes linked to face-to-face interviews with…
This study introduces a novel framework for estimating industrial heterogeneity by integrating maximum entropy (ME) estimation of production functions with Zonotope-based measures. Traditional production function estimations often rely on…
Does government transparency affect innovation? I evaluate the launch of a government database with detailed technical information on the universe of wireless-enabled products on the U.S. market (N 347 thousand). The results show the launch…
A decision-maker periodically acquires information about a changing state, controlling both the timing and content of updates. I characterize optimal policies using a decomposition of the dynamic problem into optimal stopping and static…
This paper revisits the Arrow-Debreu general equilibrium framework through the lens of effective trade, emphasizing the distinction between theoretical and realizable market interactions. We develop the Effective Trade Model (ETM), where…
Collusion and capacity withholding in electricity wholesale markets are important mechanisms of market manipulation. This study applies a refined machine learning-based cartel detection algorithm to two cartel cases in the Italian…