Publications

2024
Working Paper

LASH Risk and Interest Rates

By: Laura Alfaro, Saleem Bahaj, Robert Czech, Jonathan Hazell and Ioana Neamtu

We introduce a framework to understand and quantify a form of liquidity risk that we dub Liquidity After Solvency Hedging or “LASH” risk. Financial institutions take LASH risk when they hedge against losses, using strategies that lead to liquidity needs when the value... View Details

Keywords: Liquidity; Monetary Policy; Non-bank Intermediaries; Hedging; Risk and Uncertainty; Investment Funds; Financial Condition; Interest Rates

January – March 2012
Article

Bond Risk, Bond Return Volatility, and the Term Structure of Interest Rates

By: Luis M. Viceira

This paper explores time variation in bond risk, as measured by the covariation of bond returns with stock returns and with consumption growth, and in the volatility of bond returns. A robust stylized fact in empirical finance is that the spread between the yield on... View Details

Keywords: Bonds; Volatility; Forecasting and Prediction; Interest Rates; Inflation and Deflation; Investment Return; Risk and Uncertainty; Currency Exchange Rate; Cash Flow; Stocks

03 Apr 2012
First Look

First Look: April 3

personal conversation prior to the task. The effects of metacognitive CQ in enhancing creative collaboration were mediated by affect-based trust in Studies 2 and 3. Giving Time Gives You Time Authors:Cassie... View Details

Keywords: Carmen Nobel

02 Oct 2014
Working Paper Summaries

Bitcoin

Keywords: by Rainer Böhme, Nicolas Christin, Benjamin Edelman & Tyler Moore; Banking

May 2008
Article

When Winning Is Everything

By: Deepak Malhotra, Gillian Ku and J. Keith Murnighan

In the heat of competition, executives can easily become obsessed with beating their rivals. This adrenaline-fueled emotional state, which the authors call competitive arousal, often leads to bad decisions. Managers can minimize the potential for competitive arousal... View Details

Keywords: Decision Choices and Conditions; Auctions; Bids and Bidding; Behavior; Emotions; Personal Characteristics; Competitive Strategy; Competitive Advantage

30 Mar 2022
Blog Post

How I Spent My HBS 2+2 Deferral: Adrian Obleton

that I’m able to make a difference in the world. To have impact on any real scale, you need to be able to lead others. Several of the most inspiring leaders that I knew personally were HBS grads. They encouraged me to consider the 2+2... View Details

March 2022 (Revised May 2022)
Case

Winning Business at Russell Reynolds (A)

By: Ethan Bernstein and Cara Mazzucco

In an effort to make compensation drive collaboration, Russell Reynolds Associates’ (RRA) CEO Clarke Murphy sought to re-engineer the bonus system for his executive search consultants in 2016. As his HR analytics guru, Kelly Smith, points out, that risks upsetting–and... View Details

Educators

31 Jul 2006
Research & Ideas

When Not to Trust Your Gut

over a short lunch, set aside an entire morning—remember, you've already decided that these talks are important. If someone catches you off guard and launches into discussions on the fly, ask to reschedule the conversation for a later View Details

Keywords: by Max H. Bazerman & Deepak Malhotra

July 31, 2017
Article

A Commitment Contract to Achieve Virologic Suppression in Poorly Adherent Patients with HIV/AIDS

By: Marcella Alsan, John Beshears, Wendy S. Armstrong, James J. Choi, Brigitte C. Madrian, Minh Ly T. Nguyen, Carlos Del Rio, David Laibson and Vincent C. Marconi

Objective: Assess whether a commitment contract informed by behavioral economics leads to persistent virologic suppression among HIV-positive patients with poor antiretroviral therapy (ART) adherence. Design: Single-center pilot randomized clinical trial and a... View Details

Keywords: Adherence; Antiretroviral Therapy; Behavioral Economics; Commitment Contract; Financial Incentives; HIV-1 Virologic Suppression; Health Disorders; Motivation and Incentives

2006
Article

Capital Budgeting: The Role of Cost Allocations

By: Ian D. Gow and Stefan Reichelstein

A common issue for firms is how to allocate capital resources to various investment alternatives. An extensive and long-standing literature in finance has examined various aspects of capital budgeting, including capital constraints, the determination of discount rates,... View Details

Keywords: Capital Budgeting; Resource Allocation; Performance Evaluation; Cost Management; Research; Investment; Cash Flow; Risk Management; Performance Capacity

17 Jan 2012
Working Paper Summaries

Expectations, Network Effects and Platform Pricing

Keywords: by Andrei Hagiu & Hanna Hałaburda; Entertainment & Recreation

September – October 2009
Article

U.S. Energy Policy: Overcoming Barriers to Acting

By: Max Bazerman

Energy policy is on everyone's mind these days. The U.S. presidential campaign focused on energy independence and exploration (drill, baby, drill), climate change, alternative fuels, even nuclear energy. But there is a serious problem endemic to America's energy... View Details

Keywords: Policy; Climate Change; Energy Sources; Government and Politics; Cognition and Thinking; Management Analysis, Tools, and Techniques; Problems and Challenges; Non-Renewable Energy; Economics; Natural Environment; Energy Industry; United States

27 May 2009
First Look

First Look: May 27, 2009

prices for future consumption volatility but implies much greater predictive power of stock prices for future stock return volatility than is found in the data. Neither calibration can explain why movements in real interest rates do not... View Details

Keywords: Martha Lagace

23 Oct 2018
First Look

New Research and Ideas, October 23, 2018

individual passengers’ connection times, the system also produces quantile forecasts for the number of passengers arriving at the immigration and security areas. Academic/Practical relevance: Airports and airlines have been challenged to improve decision-making by... View Details

Keywords: Dina Gerdeman

01 Jul 2019
Research & Ideas

The Airbnb Lesson for Startups? Success Takes More Than Technology

it wasn’t hard for Airbnb to establish a toehold fast. Without the overhead of real estate and hotel staff, Airbnb has quickly expanded into related services, making it tougher for incumbents to compete, says Teixeira. After lobbying and... View Details

Keywords: by Danielle Kost; Travel; Tourism

2009
Working Paper

Systemic Risk and the Refinancing Ratchet Effect

By: Amir E. Khandani, Andrew W. Lo and Robert C. Merton

The confluence of three trends in the U.S. residential housing market-rising home prices, declining interest rates, and near-frictionless refinancing opportunities-led to vastly increased systemic risk in the financial system. Individually, each of these trends is... View Details

Keywords: Equity; Mortgages; Interest Rates; Price; Housing; Risk and Uncertainty; United States