Publications

21 Aug 2006
Research & Ideas

How Europe Wrote the Rules of Global Finance

1998 as part of its management of an apparently ongoing crisis. The reaction of the international financial community—and some of my students—was severe. The capital controls were labeled "unorthodox" and "heretical," although no formal rule forbade... View Details

Keywords: by Ann Cullen

27 Mar 2015
Working Paper Summaries

Capital Requirements, Risk Choice, and Liquidity Provision in a Business Cycle Model

Keywords: by Juliane Begenau; Banking; Financial Services

June 2018
Article

Deviations from Covered Interest Rate Parity

By: Wenxin Du, Alexander Tepper and Adrien Verdelhan

We find that deviations from the covered interest rate parity (CIP) condition imply large, persistent, and systematic arbitrage opportunities in one of the largest asset markets in the world. Contrary to the common view, these deviations for major currencies are not... View Details

Keywords: Interest Rates; Financial Markets; Banks and Banking; Price

2021
Working Paper

Elusive Safety: The New Geography of Capital Flows and Risk

By: Laura Alfaro, Ester Faia, Ruth Judson and Tim Schmidt-Eisenlohr

A confidential dataset with industry-level disaggregation of U.S. cross-border claims and liabilities, shows U.S. securities to be increasingly intermediated by tax-haven-financial-centers (THFC) and less regulated funds. These securities are risky, in... View Details

Keywords: Tax Havens; Financial Centers; Geography Of Flows; Profit Shifting; Tax Avoidance; Risk; Safe Assets; Hetergeneous Firms; Endogenous Entry; Endogenous Monitoring; Regulatory Arbitrage; Assets; Safety; Risk and Uncertainty; Capital; Global Range

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2020
Working Paper

Improving Regulatory Effectiveness Through Better Targeting: Evidence from OSHA

By: Matthew S. Johnson, David I. Levine and Michael W. Toffel

We study how a regulator can best target inspections. Our case study is a US Occupational Safety and Health Administration (OSHA) program that randomly allocated some inspections. On average, each inspection averted 2.4 serious injuries (9%) over the next five years.... View Details

Keywords: Government Administration; Working Conditions; Safety; Quality; Production; Analysis; Resource Allocation; Manufacturing Industry; United States

SSRN

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Article

Integrated Strategy: Residual Market and Exchange Imperfections as the Foundation of Sustainable Competitive Advantage

By: Felix Oberholzer-Gee and Dennis Yao

Market imperfections are central to understanding the mechanisms that permit firms to capture value. Many of these imperfections are competed away when firms struggle to attain and defend competitive advantages, making markets more efficient in the process. The... View Details

Keywords: Integrated Strategy; Nonmarket Strategy; Market Imperfections; Strategy; Competitive Advantage; Governing Rules, Regulations, and Reforms

October 1991 (Revised June 1996)
Case

Lotus MarketPlace: Households

By: Lynn S. Paine

Managers at Lotus and Equifax must decide what to do about their new jointly developed database and software product Lotus MarketPlace which has been criticized as a threat to individual privacy. The Product, which would allow small businesses to buy targeting mail... View Details

Keywords: Information; Business or Company Management; Rights; Ethics; Marketing Communications; Applications and Software; Product Marketing; Information Technology Industry

13 Oct 2015
News

How Thin Political Markets Undermine Democracy

Article

Holdout in the Assembly of Complements: A Problem for Market Design

By: Scott Duke Kominers and E. Glen Weyl

Holdout problems prevent private (voluntary and self-financing) assembly of complementary goods—such as land or dispersed spectrum—from many self-interested sellers. While mechanisms that fully respect sellers' property rights cannot alleviate these holdout problems,... View Details

Keywords: Governance; Market Design; Property

Article

Media versus Special Interests

By: Alexander Dyck, David Moss and Luigi Zingales

We argue that profit-maximizing media help to overcome the rational ignorance problem highlighted by Anthony Downs. By collecting news and combining it with entertainment, media are able to inform passive voters about regulation and other public policy issues, acting... View Details

Keywords: Media; Profit; Government and Politics

April 2013 (Revised October 2014)
Case

SaferTaxi: Connecting Taxis and Passengers in South America

By: Peter Coles and Benjamin Edelman

SaferTaxi, a taxi booking service in South America must develop its mobilization strategy; that is, it must attract enough passengers and drivers to make its service worthwhile for all. Drivers hesitate to pay for SaferTaxi's smartphones and service unless these will... View Details

Keywords: Taxi Booking; Smartphone; Transportation Networks; Network Effects; Laws and Statutes; South America; Argentina; Brazil; Chile

Not that long ago, online commerce promised not only to make markets more efficient but also more inclusive and less prone to discrimination. The rationale was simple: On the internet, no one knows whether you’re black or white, male or female, making it more difficult... View Details

17 Jan 2013
Working Paper Summaries

Deregulation, Misallocation, and Size: Evidence from India

Keywords: by Laura Alfaro & Anusha Chari

November 2023
Article

When Executives Pledge Integrity: The Effect of the Accountant's Oath on Firms' Financial Reporting

By: Jonas Heese, Gerardo Pérez Cavazos and Caspar David Peter

We study the effect of executives’ pledges of integrity on firms’ financial reporting outcomes by exploiting a 2016 regulation that requires holders of Dutch professional accounting degrees to pledge an integrity oath. We identify chief executive officers (CEOs) and... View Details

Keywords: Integrity; Financial Reporting; Accounting; Earnings Management

SSRN

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November 2014 (Revised June 2016)
Case

Lobbying at eCab

By: Karthik Ramanna

Erin Jones' ridesharing startup in her mid-sized hometown is finally picking up. She's hoping to reach a sustainable scale so that she can sell to a large player such as Uber in a year. But suddenly, she hits political roadblocks—the local Democratic mayor, facing a... View Details

April 2012 (Revised June 2014)
Case

Capitalizing for the Future: HSBC in 2010

By: Anette Mikes and Dominique Hamel

Following the financial crisis of 2007/2008, HSBC CEO Michael Geoghegan saw a fundamental change in global opportunities and risks. With increasing regulation and fierce competition between banks, the Western hemisphere was going to be a tougher place to do business.... View Details

Keywords: Accounting; Competitive Strategy; Control Systems; Finance; Financial Crisis; Banks and Banking; Emerging Markets; Risk Management; Business Strategy; Banking Industry

02 Jul 2020
News

How to Make Remote Monitoring Tech Part of Everyday Health Care

02 Sep 2008
First Look

First Look: September 3, 2008

spillover effects. In the domain of private politics, shareholder resolutions filed against a firm, and against others in its industry, increase its propensity to acquiesce to these shareholder requests. Similarly, in the realm of public politics, the threat of state... View Details

Keywords: Sean Silverthorne

November 2022 (Revised March 2024)
Case

Replika AI: Monetizing a Chatbot

By: Julian De Freitas and Nicole Tempest Keller

In early 2018, Eugenia Kuyda, co-founder and CEO of San Francisco-based chatbot Replika AI, was deciding how to monetize the app she had built. Launched in 2017, Replika was a consumer AI “companion app” developed by a team of AI software engineers originally based in... View Details

Keywords: Mental Health; Subscriber Models; TAM; Monetization Strategy; Marketing Strategy; Product Marketing; AI and Machine Learning; Applications and Software; Product Positioning; Health Disorders; Technology Industry