Working Papers

We estimate and test a model of voluntary disclosure in which a manager’s information set is uncertain (Dye 1985; Jung and Kwon 1988). In this model, a manager makes his disclosure decision to maximize the market price,...

We study firm’s incentives to invest and build reputation for quality, when quality can be certified at a cost. We consider two types of equilibria: one in which certification decisions are made based on firm’s...

Two heterogeneous agents exert effort over time to complete a project and collectively decide its scope. A larger scope requires greater cumulative effort and delivers higher benefits upon completion. To study the scope under collective...

Using ethnographic, experimental and survey data from an Indian handicraft cluster, this paper studies the conditions under which individuals who identify with their work prioritize financial rewards in their economic decisions. I argue that the...

This paper develops a model framework and a corresponding empirical inference procedure for estimating long-run marginal cost in industries where production costs decline over time. In the context of the solar photovoltaic module industry, we...

We demonstrate the existence of a continuum of agents conducting directed random searches for counterparties, and characterize the implications. Our results provide the first probabilistic foundation for static and dynamic directed random search (including the...

This study demonstrates that standard analyst coverage proxies contain information about firm-level expected returns. We decompose analyst coverage proxies into abnormal and expected components using a simple characteristic-based model and show that firms with abnormally...

Political institutions often use decision making procedures that create veto players—individuals or groups who, despite lacking direct decision making authority, nevertheless have the power to  block policy change. In this paper we use the competitive...

We develop and implement a rigorous analytical framework for empirically evaluating the relative performance of firm-level expected-return proxies (ERPs), based on the premise that superior proxies should closely track true expected returns both cross-sectionally and...