Publications

September 2022
Article

Health Externalities and Policy: The Role of Social Preferences

By: Laura Alfaro, Ester Faia, Nora Lamersdorf and Farzad Saidi

Social preferences facilitate the internalization of health externalities, for example by reducing mobility during a pandemic. We test this hypothesis using mobility data from 258 cities worldwide alongside experimentally validated measures of social preferences.... View Details

Keywords: Social Preferences; Pandemics; Mobility; Health Externalities; Mitigation Policies; Health Pandemics; Cooperation; Behavior; Policy

September 2006
Article

Decomposing Trust and Trustworthiness

By: Nava Ashraf, Iris Bohnet and Nikita Piankov

What motivates people to trust and be trustworthy? Is trust solely "calculative," based on the expectation of trustworthiness, and trustworthiness only reciprocity? Employing a within-subject design, we run investment and dictator game experiments in Russia, South... View Details

Keywords: Trust; Change

2024
Working Paper

The Retail Habitat

By: Toomas Laarits and Marco Sammon

Retail investors trade hard-to-value stocks. Controlling for size, stocks with a high share of retail-initiated trades are composed of more intangible capital, have longer duration cash-flows and a higher likelihood of being mispriced. Consistent with retail-heavy... View Details

Keywords: Retail; Retail Trade; Intangible Capital; Mispricing; Investment; Valuation; Business Earnings

SSRN

Article

The Cross Section of Bank Value

By: Mark Egan, Stefan Lewellen and Adi Sunderam

We study the determinants of value creation in U.S. commercial banks. We develop novel measures of individual banks' productivities at collecting deposits and making loans. We relate these measures to bank market values and find that deposit productivity is responsible... View Details

Keywords: Productivity; Banks and Banking; Valuation; Performance Productivity; Value Creation; United States

Article

Targeting Weather Insurance Markets

By: Anita Mukherjee, Shawn Cole and Jeremy Tobacman

The suitability of insurance products often depends greatly on individual circumstances. This paper examines the challenges of heterogeneity in a relatively new product, weather‐indexed insurance. This index insurance product has been launched in over a dozen... View Details

Keywords: Index Insurance; Labor Markets; Self-insurance; Self-protection; Weather; Insurance; Markets; Household; Risk Management

Purchase

April–June 2022
Other Article

Commentary on 'Causal Decision Making and Causal Eﬀect Estimation Are Not the Same... and Why It Matters'

By: Edward McFowland III

There has been a substantial discussion in various methodological and applied literatures around causal inference; especially in the use of machine learning and statistical models to understand heterogeneity in treatment effects and to make optimal decision... View Details

Keywords: Causal Inference; Treatment Effect Estimation; Treatment Assignment Policy; Human-in-the-loop; Decision Making; Fairness

Purchase

Spring 2021
Article

Corporate Resilience and Response During COVID-19

By: Alex Cheema-Fox, Bridget LaPerla, George Serafeim and Hui (Stacie) Wang

The coronavirus pandemic caused a sharp market decline while raising heterogeneous responses across companies related to their employees, supply chain, and repurposing of operations to provide needed products and services. We study whether during the 2020 COVID-19... View Details

SSRN

2024
Working Paper

Displacement or Complementarity? The Labor Market Impact of Generative AI

By: Wilbur Xinyuan Chen, Suraj Srinivasan and Saleh Zakerinia

Generative AI is poised to reshape the labor market, affecting cognitive and white-collar occupations in ways distinct from past technological revolutions. This study examines whether generative AI displaces workers or augments their jobs by analyzing labor demand and... View Details

Keywords: Generative Ai; Labor Market; Automation And Augmentation

2021
Working Paper

Real Credit Cycles

By: Pedro Bordalo, Nicola Gennaioli, Andrei Shleifer and Stephen J. Terry

We incorporate diagnostic expectations, a psychologically founded model of overreaction to news, into a workhorse business cycle model with heterogeneous firms and risky debt. A realistic degree of diagnosticity, estimated from the forecast errors of managers of U.S.... View Details

Keywords: Econometric Models; Business Cycles; Credit

2023
Working Paper

Money, Time, and Grant Design

By: Kyle Myers and Wei Yang Tham

The design of research grants has been hypothesized to be a useful tool for influencing researchers and their science. We test this by conducting two thought experiments in a nationally representative survey of academic researchers. First, we offer participants a... View Details

Keywords: Research; Power and Influence; Money

May 2018
Article

The Economics of Patient-Centered Care

By: Guy David, Philip Saynisch and Aaron Smith-McLallen

The Patient-Centered Medical Home (PCMH) is a widely-implemented model for improving primary care, emphasizing care coordination, information technology, and process improvements. However, its treatment as an undifferentiated intervention in policy evaluation obscures... View Details

Keywords: Primary Care; Accreditation; Patient-centered Medical Home; Health Care and Treatment; Economics

15 May 2019
HBS Seminar

Pascaline Dupas, Stanford University

2014
Working Paper

Finance and Social Responsibility in the Informal Economy: Institutional Voids, Globalization and Microfinance Institutions

By: Hao Liang, Christopher Marquis and Sunny Li Sun

We examine the heterogeneous effects of globalization on the interest rate setting by microfinance institutions (MFIs) around the world. We consider MFIs as a mechanism to overcome the institutional void of credit for small entrepreneurs in developing and emerging... View Details

Keywords: Institutional Voids; Microfinance Institutions; Economic Globalization; Social Globalization; Microfinance; Globalization; Developing Countries and Economies

SSRN

April 2014
Article

The Emergence of 'Us and Them' in 80 Lines of Code: Modeling Group Genesis in Homogeneous Populations

By: Kurt Gray, David G. Rand, Eyal Ert, Kevin Lewis, Steve Hershman and Michael I. Norton

Psychological explanations of group genesis often require population heterogeneity in identity or other characteristics, whether deep (e.g., religion) or superficial (e.g., eye color). We use game-theoretical agent-based models to explore group genesis in homogeneous... View Details

Keywords: Groups and Teams

March–April 2019
Article

A Recombination-Based Internationalization Model: Evidence from Narayana Health's Journey from India to the Cayman Islands

By: Budhaditya Gupta and Tarun Khanna

Internationalizing firms often find developing host-country resources challenging as they simultaneously attempt to replicate the resources that worked well in their home country and adapt them to fit the context of the host country. On the basis of a longitudinal... View Details

Keywords: Recombination; Internationalization; Cross-Cultural and Cross-Border Issues; Multinational Firms and Management; Health Care and Treatment; India; Cayman Islands

Research Summary

Creating ‘Smart’ Policy to Promote Entrepreneurship and Innovation

By: Karen Mills

Entrepreneurship is a key to unlocking innovation and fostering regional and national economic productivity. Extensive studies demonstrate that small and young firms contribute to innovation and employment growth. But which of the many types of small firms are... View Details

August 2014
Article

Friends in High Places

By: Lauren Cohen and Christopher Malloy

We demonstrate that personal connections amongst U.S. politicians have a significant impact on Senate voting behavior. Networks based on alumni connections between politicians are consistent predictors of voting behavior. We estimate sharp measures that control for... View Details

Keywords: Vote Trading; Networks; Legislation; Logrolling; Earmarks; Voting; Government Legislation; Social and Collaborative Networks; United States