Economics

Approximating time-varying unobserved heterogeneity by discrete types has become increasingly popular in economics. Yet, provably valid post-clustering inference for target parameters in models that do not impose an exact group structure is…

In this paper, we investigate the optimal strategies in the Werewolf Game-a widely played strategic social deduction game involving two opposing factions-from a game-theoretic perspective. We consider two scenarios: the game without a…

In multi-item screening, optimal selling mechanisms are challenging to characterize and implement, even with full knowledge of valuation distributions. In this paper, we aim to develop tractable, interpretable, and implementable mechanisms…

In this paper, we study third-degree price discrimination in a model first presented by Bergemann, Brooks, and Morris [2015]. Since such price discrimination might create market segments with vastly different posted prices, we consider…

Duflo (2001) exploits a 1970s schooling expansion in Indonesia to estimate impacts on schooling and labor outcomes, as well as the returns to schooling. I correct data errors, adjust for potential sources of bias, follow up later in life,…

The Oregon Health Insurance Experiment (OHIE) offers a unique opportunity to examine the causal relationship between Medicaid coverage and happiness among low-income adults, using an experimental design. This study leverages data from…

This study examines strategic behavior in crowdfunding using a large-scale online experiment. Building on the model of Arieli et. al 2023, we test predictions about risk aversion (i.e., opting out despite seeing a positive private signal)…

Feeding a larger and wealthier global population without transgressing ecological limits is increasingly challenging, as rising food demand (especially for animal products) intensifies pressure on ecosystems, accelerates deforestation, and…

Strong empirical evidence from laboratory experiments, and more recently from population surveys, shows that individuals, when evaluating their situations, pay attention to whether they experience gains or losses, with losses weighing more…

This paper introduces Natural Language Processing for identifying ``true'' green patents from official supporting documents. We start our training on about 12.4 million patents that had been classified as green from previous literature.…

High-frequency quantitative trading strategies have long been of significant interest in futures market. While advanced statistical arbitrage and deep learning enhance high-frequency data processing, they diminish opportunities for…

Obtaining valid treatment effect inference remains a challenging problem when dealing with numerous instruments and non-sparse control variables. In this paper, we propose a novel ridge regularization-based instrumental variables method for…

This article investigates factor-augmented sparse MIDAS (Mixed Data Sampling) regressions for high-dimensional time series data, which may be observed at different frequencies. Our novel approach integrates sparse and dense dimensionality…

We present the unified market-based description of returns and variances of the trades with shares of a particular security, of the trades with shares of all securities in the market, and of the trades with the market portfolio. We consider…

This paper develops a theory-driven automation exposure index based on Moravec's Paradox. Scoring 19,000 O*NET tasks on performance variance, tacit knowledge, data abundance, and algorithmic gaps reveals that management, STEM, and sciences…

This paper introduces the concept of perfect monotone equilibrium in Bayesian games, which refines the standard monotone equilibrium by accounting for the possibility of unintended moves (trembling hand) and thereby enhancing robustness to…

Researchers do not know what the framers of the United States Constitution intended when they wrote of the general Welfare. Nevertheless, economists can conjecture by specifying social welfare functions that aim to express the preferences…

We develop a class of optimal tests for a structural break occurring at an unknown date in infinite and growing-order time series regression models, such as AR($\infty$), linear regression with increasingly many covariates, and…

We leverage an ensemble of many regressors, the number of which can exceed the sample size, for economic prediction. An underlying latent factor structure implies a dense regression model with highly correlated covariates. We propose the…

We study the effects of academic rank using data on the entire population of children enrolled in primary schools in Aberdeen, Scotland, in 1962. Exploiting quasi-random variation in peer group composition, we estimate the causal impact of…