Economics
The paper deals with models in which the dependent variable, some explanatory variables, or both represent sensitive data. We introduce a novel discretization method that preserves data privacy when working with such variables. A multiple…
Empirical researchers often perform model specification tests, such as Hausman tests and overidentifying restrictions tests, to assess the validity of estimators rather than that of models. This paper examines the effectiveness of such…
We build a 167-indicator comprehensive credit risk indicator set, integrating macro, corporate financial, bond-specific indicators, and for the first time, 30 large-scale corporate non-financial indicators. We use seven machine learning…
The System Price (SP) of the Nordic electricity market serves as a key reference for financial hedge contracts such as Electricity Price Area Differentials (EPADs) and other risk management instruments. Therefore, the identification of…
This paper examines the relationship between informal caregiving and both cognitive functioning and healthcare utilization among older adults with dementia. Using data from the RAND version of the Health and Retirement Study (HRS), a…
Economic complexity has been linked to sustainability outcomes, such as income inequality and greenhouse gas emissions. Yet, it is unclear whether the pursuit of complex and/or related activities naturally aligns with these outcomes, or…
We obtain a full characterization of consistency with respect to higher-order stochastic dominance within the rank-dependent utility model. Different from the results in the literature, we do not assume any condition on the utility…
Antitrust authorities routinely rely on market concentration measures to assess the potential adverse effects of mergers on consumer welfare. Using a first-order approximation argument with logit and CES demand, I derive the relationship…
Bootstrap procedures for local projections typically rely on assuming that the data generating process (DGP) is a finite order vector autoregression (VAR), often taken to be that implied by the local projection at horizon 1. Although…
Trade agreements are often understood as shielding commerce from fluctuations in political relations. This paper provides evidence that World Trade Organization membership reduces the penalty of political distance on trade at the extensive…
I characterize stochastic non-t\^atonnement processes (SNTP) and argue that they are a natural outcome of General Equilibrium Theory. To do so, I revisit the classical demand theory to define a normalized Walrasian demand and a…
The limitations of the traditional mean-variance (MV) efficient frontier, as introduced by Markowitz (1952), have been extensively documented in the literature. Specifically, the assumptions of normally distributed returns or quadratic…
A growing literature provides evidence on multigenerational inequality -- the extent to which socio-economic advantages persist across three or more generations. This chapter reviews its main findings and implications. Most studies find…
A monopolist sells multiple goods to an uninformed buyer. The buyer chooses to learn any one-dimensional linear signal of their values for the goods, anticipating the seller's mechanism. The seller designs an optimal mechanism, anticipating…
Using monthly Survey of Income Program Participation (SIPP) data and a regression discontinuity (RD) design at the 138 percent Federal Poverty Line (FPL) threshold, this paper shows that childless adults in Medicaid expansion states lowered…
This paper presents a method for constructing uniform confidence bands for the marginal treatment effect (MTE) function. The shape of the MTE function offers insight into how the unobserved propensity to receive treatment is related to the…
This paper considers the problem of ranking objects based on their latent merits using data from pairwise interactions. We allow for incomplete observation of these interactions and study what can be inferred about rankings in such…
Empirical researchers often estimate spillover effects by fitting linear or non-linear regression models to sampled network data. We show that common sampling schemes bias these estimates, potentially upwards, and derive biased-corrected…
How many experimental studies would have come to different conclusions had they been run on larger samples? I show how to estimate the expected number of statistically significant results that a set of experiments would have reported had…
Trust is central to human social interactions, manifesting in actions that make one vulnerable to another. We argue that trust will thus depend on the decision-making processes that arise in neural systems. Building on advances in the…