Economics
We develop a continuous-time peer-effect discrete choice model where peers that affect the preferences of a given agent are randomly selected based on their previous choices. We characterize the equilibrium behavior and study the empirical…
Electric power systems are increasingly turning to energy storage systems to balance supply and demand. But how much storage is required? What is the optimal volume of storage in a power system and on what does it depend? In addition, what…
Post-Double-Lasso is becoming the most popular method for estimating linear regression models with many covariates when the purpose is to obtain an accurate estimate of a parameter of interest, such as an average treatment effect. However,…
This paper provides a unified approach to characterize the set of all feasible signals subject to privacy constraints. The Blackwell frontier of feasible signals can be decomposed into minimum informative signals achieving the Blackwell…
We analyze the problem of matching asylum seekers to member states, incorporating wait times, preferences of asylum seekers, and the priorities, capacities, and burden-sharing commitments of member states. We identify a unique choice rule…
Contest participants often have strong incentives to engage in cheating. Sanctions serve as a common deterrent against such conduct. Often, other agents on the contestant's team (e.g., a coach of an athlete) or a company (a manager of an…
In auction markets that are prone to market power abuse, preventive mitigation of bid prices can be applied through automated mitigation procedures (AMP). Despite the widespread application of AMP in US electricity markets, there exists…
This study evaluates large language models as estimable classifiers and clarifies how modeling choices shape downstream measurement error. Revisiting the Economic Policy Uncertainty index, we show that contemporary classifiers substantially…
Financial markets are interconnected, with micro-currents propagating across global markets and shaping economic trends. This paper moves beyond traditional stock market indices to examine cross-sectional return distributions-15 in our…
As predictive algorithms grow in popularity, using the same dataset to both train and test a new model has become routine across research, policy, and industry. Sample-splitting attains valid inference on model properties by using separate…
Using monthly Patreon earnings, we quantify how platform attention algorithms shape earnings concentration across creator economies. Patreon is a tool for creators to monetize additional content from loyal subscribers but offers little…
Standard models of asset price dynamics, such as geometric Brownian motion (see, for example, Osborne, 1959, Samuelson, 2016), do not formally incorporate investor inertia. This paper presents a two-stage framework for modelling this…
Double Machine Learning is widely used to estimate causal treatment effects in large-scale observational data. The ``residuals-on-residuals'' regression estimator (RORR) is especially popular for its simplicity and computational…
This paper proposes a novel school choice system where schools are grouped into hierarchical bundles and offered to students as options for preference reports. By listing a bundle, a student seeks admission to any school within it without…
A researcher allocates a budget of informative tests across multiple unknown attributes to influence a decision-maker. We derive the researcher's equilibrium learning strategy by solving an auxiliary single-player problem. The attribute…
This study assesses how the growing availability of working from home (WFH) shapes office employees' preferences to move to the suburbs and pinpoints the socio-economic factors that drive those intentions. We focus on Poland, where the…
In many supply chains, the current efforts at digitalization have led to improved information exchanges between manufacturers and their customers. Specifically, demand forecasts are often provided by the customers and regularly updated as…
In this paper we examine non-convex dynamic optimization problems with forward looking constraints. We prove that the recursive multiplier formulation in \cite{marcet2019recursive} gives the optimal value if one assumes that the planner has…
Understanding household behaviour is essential for modelling macroeconomic dynamics and designing effective policy. While heterogeneous agent models offer a more realistic alternative to representative agent frameworks, their implementation…
We study allocation problems with reserve systems under minimum beneficiary-share guarantees, requirements that targeted matches constitute at least a specified percentage of total matches. While such mandates promote targeted matches, they…