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  • July 2019
  • Teaching Note

Arlan Hamilton and Backstage Capital

By: Laura Huang
Teaching Note for HBS No. 419-029. Frustrated by an inability to convince existing venture capital firms to invest in companies led by women, people of color, and LGBT founders, Arlan Hamilton started her own firm, Backstage Capital, in 2015. Hamilton understood the... View Details
Keywords: Black Leadership; LGBTQ; People Of Color; Entrepreneurship; Mission and Purpose; Venture Capital; Corporate Social Responsibility and Impact; Identity; Personal Characteristics; Prejudice and Bias; Social Issues; Diversity; Gender; Race
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Huang, Laura. "Arlan Hamilton and Backstage Capital." Harvard Business School Teaching Note 420-010, July 2019.
  • Research Summary

Deregulation, Misallocation, and Size: Evidence from India

By: Laura Alfaro
This paper examines the impact of the deregulation of compulsory industrial licensing in India on firm size dynamics and reallocation of resources within industries. Following deregulation, resource misallocation declines, and the left-hand tail of the firm size... View Details
  • June 2020
  • Supplement

Career Karma: Growth in a Time of Global Uncertainty (B)

By: Laura Huang and Elizabeth Jiang
This (B) case expands upon the journey of Career Karma’s three founders by presenting a fictionalized Investor Meeting scenario. View Details
Keywords: Business Ventures; Business Growth and Maturation; Business Plan; Business Startups; Education; Training; Entrepreneurship; Corporate Entrepreneurship; Social Entrepreneurship; Management; Goals and Objectives; Growth and Development Strategy; Growth Management; Marketing Strategy; Organizations; Mission and Purpose; Personal Development and Career; Technology Industry; Education Industry; Employment Industry
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Huang, Laura, and Elizabeth Jiang. "Career Karma: Growth in a Time of Global Uncertainty (B)." Harvard Business School Supplement 420-125, June 2020.
  • Research Summary

Nominal versus Indexed Debt: A Quantitative Horse Race (joint with Fabio Kanczuk)

By: Laura Alfaro
There are different arguments in favor and against nominal and indexed debt which broadly include the incentive to default through inflation versus hedging against unforeseen shocks. We model these arguments and calibrate the model to assess the quantitative importance... View Details
  • January 2020
  • Supplement

Brexit: A Withdrawal Agreement? — Boris Johnson

By: Laura Alfaro and Sarah Jeong
The UK was due to leave the EU in March 2019 after a referendum vote in June 2016. Following additional extensions and multiple failed attempts to reach an agreement with Parliament, Theresa May stepped down as Conservative Party leader and was replaced by Boris... View Details
Keywords: Brexit; Government and Politics; International Relations; United Kingdom; European Union
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Alfaro, Laura, and Sarah Jeong. "Brexit: A Withdrawal Agreement? — Boris Johnson." Harvard Business School Supplement 320-081, January 2020.
  • July 2020
  • Teaching Note

COVID-19: The Global Shutdown

By: Laura Alfaro and Sarah Jeong
In the first months of 2020, a pandemic overwhelmed the world. COVID-19, commonly known as the coronavirus, spread from China and created a severe public health emergency across countries. While an immediate fear of the disease’s impact on human life permeaacted... View Details
Keywords: COVID-19; Health Pandemics; Trade; Microeconomics; Macroeconomics; Financial Crisis; Economy; Policy; Governance; Economic Systems; Economic Slowdown and Stagnation; Economic Sectors
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Alfaro, Laura, and Sarah Jeong. "COVID-19: The Global Shutdown." Harvard Business School Teaching Note 321-021, July 2020.
  • 2016
  • Working Paper

The U.S. Chamber of Commerce and the Modern Administrative State, 1912–1925: Trade Associations, Codes of Fair Competition, and State Building

By: Laura Phillips Sawyer
From its founding in 1912 through the interwar years, the Chamber's history shows a persistent preoccupation with progressive economics and policy-making. Rather than flouting the new ideas of institutional economics, which favored federal regulators overseeing data... View Details
Keywords: Organizations; Trade; Business and Government Relations; Competition; United States
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Phillips Sawyer, Laura. "The U.S. Chamber of Commerce and the Modern Administrative State, 1912–1925: Trade Associations, Codes of Fair Competition, and State Building." Harvard Business School Working Paper, No. 16-085, February 2016.
  • 10 Nov 2009
  • First Look

First Look: Nov. 10

revolutionary functionality. We explore a second path to entry that does not rely on Schumpeterian innovation: platform envelopment. By leveraging shared user relationships and common components, one platform provider can move into... View Details
Keywords: Martha Lagace
  • Research Summary

Selection and Market Reallocation: Productivity Gains from Multinational Production

By: Laura Alfaro
Assessing the productivity gains from multinational production has been a vital topic of economic research and policy debate. Positive aggregate productivity gains are often attributed to within-firm productivity improvement; however, an alternative, less emphasized... View Details
  • Research Summary

Intra-Industry Foreign Direct Investment (joint with Andrew Charlton)

By: Laura Alfaro
We identify a new type of vertical foreign direct investment (FDI) made up of multinational subsidiaries producing intermediate inputs, which are of similar skill intensity to the final goods produced by their parents, and which are overwhelmingly located in high skill... View Details
  • August 2004
  • Article

Capital Controls, Risk and Liberalization Cycles

By: Laura Alfaro and Fabio Kanczuk
The paper presents an overlapping-generations model where agents vote on whether to open or close the economy to international capital flows. Political decisions are shaped by the risk over capital and labor returns. In an open economy, the capitalists (old) completely... View Details
Keywords: Business Cycles; Development Economics; Voting; Risk and Uncertainty; Cash Flow; Saving; Investment; Economy; Wages
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Alfaro, Laura, and Fabio Kanczuk. "Capital Controls, Risk and Liberalization Cycles." Review of International Economics 12, no. 3 (August 2004): 412–434.
  • February 2019
  • Editorial

Introduction To: The Euro at Twenty

By: Laura Alfaro and Paul R. Bergin
The article introduces a special volume on the “Euro at Twenty” as the currency was first introduced January 1, 1999. The volume includes papers by renowned leaders and thinkers: Jean-Claude Trichet, former President of the European Central Bank; Claudia Buch,... View Details
Keywords: The Euro; Currency; Europe; European Union
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Alfaro, Laura, and Paul R. Bergin. "Introduction To: The Euro at Twenty." Review of World Economics 155, no. 1 (February 2019).
  • December 2010
  • Article

Nominal versus Indexed Debt: A Quantitative Horse Race

By: Laura Alfaro and Fabio Kanczuk
The main arguments in favor of and against nominal and indexed debt are the incentive to default through inflation versus hedging against unforeseen shocks. We model and calibrate these arguments to assess their quantitative importance. We use a dynamic equilibrium... View Details
Keywords: Borrowing and Debt; Motivation and Incentives; Inflation and Deflation; System Shocks; Taxation; Risk and Uncertainty; Framework; Problems and Challenges; Interest Rates; Cost; Developing Countries and Economies; Service Operations
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Alfaro, Laura, and Fabio Kanczuk. "Nominal versus Indexed Debt: A Quantitative Horse Race." Journal of International Money and Finance 29, no. 8 (December 2010): 1706–1726. (Also Harvard Business School Working Paper No. 05-053 and NBER Working Paper No. 13131.)
  • April 2009
  • Case

The First Global Financial Crisis of the 21st Century

By: Laura Alfaro and Renee Kim
The global economy was expected to suffer from negative growth for the full year in 2009, a phenomenon not seen since World War II. While the U.S. subprime mortgage disaster was blamed as the original instigator, it was noted that the "global imbalances" of the U.S.... View Details
Keywords: Financial Crisis; Mortgages; Globalized Economies and Regions; Policy; International Relations; Business and Government Relations; Conflict and Resolution
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Alfaro, Laura, and Renee Kim. "The First Global Financial Crisis of the 21st Century." Harvard Business School Case 709-057, April 2009.
  • October 2003 (Revised January 2016)
  • Exercise

The BCPC Internet Strategy Team: An Exercise

By: Amy C. Edmondson and Laura Feldman
This short fictional case forms the basis of a team decision-making exercise. The case, inspired by a real decision facing a major telecommunications company, describes a cross-functional management team convened by the CEO for the purpose of developing a... View Details
Keywords: Groups and Teams; Decision Making; Risk and Uncertainty; Information Management; Perspective; Product Launch; Internet and the Web; Knowledge Sharing; Telecommunications Industry
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Edmondson, Amy C., and Laura Feldman. "The BCPC Internet Strategy Team: An Exercise." Harvard Business School Exercise 604-035, October 2003. (Revised January 2016.) (Six supplements available for Chris Berkowitz, Dana Jones, Jan Trow, Kim Wilson, Leslie Rhee, and Terry Maneri.)
  • fall 2010
  • Article

Lawsuits and Empire: On the Enforcement of Sovereign Debt in Latin America

By: Faisal Z. Ahmed, Laura Alfaro and Noel Maurer
The re-occurring phenomenon of sovereign default has prompted an enormous theoretical and empirical literature. Most of this research has focused on why countries ever chose to pay their debts (or why private creditors ever expected repayment). The problem originates... View Details
Keywords: Lawsuits and Litigation; Insolvency and Bankruptcy; Sovereign Finance; Borrowing and Debt; Debt Securities; Motivation and Incentives; Markets; Equity; Banking Industry; Latin America
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Ahmed, Faisal Z., Laura Alfaro, and Noel Maurer. "Lawsuits and Empire: On the Enforcement of Sovereign Debt in Latin America." Law and Contemporary Problems 73, no. 4 (fall 2010): 39–46.
  • 2012
  • Other Unpublished Work

Selection, Reallocation, and Knowledge Spillover: Identifying the Sources of Productivity Gains from Multinational Activity

By: Laura Alfaro and Maggie X. Chen
The impact of multinational activity on host-country productivity has been a major topic of economic research. A positive impact can be attributed to knowledge spillovers from foreign multinational to domestic firms or a less stressed, alternative explanation—firm... View Details
Keywords: Multinational Firms and Management; Performance Productivity; Supply and Industry; Knowledge; Manufacturing Industry
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Alfaro, Laura, and Maggie X. Chen. "Selection, Reallocation, and Knowledge Spillover: Identifying the Sources of Productivity Gains from Multinational Activity." 2012.
  • March 2005
  • Article

Sovereign Debt As a Contingent Claim: A Quantitative Approach

By: Laura Alfaro and Fabio Kanczuk
We construct a dynamic equilibrium model with contingent service and adverse selection to quantitatively study sovereign debt. In the model, benefits of defaulting are tempered by higher future interest rates. For a wide set of parameters, the only equilibrium is one... View Details
Keywords: Sovereign Finance; Borrowing and Debt; Interest Rates; Balance and Stability; Risk and Uncertainty; Risk Management; Mathematical Methods; Management Style; Segmentation; Debt Securities; Banking Industry
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Alfaro, Laura, and Fabio Kanczuk. "Sovereign Debt As a Contingent Claim: A Quantitative Approach." Journal of International Economics 65, no. 2 (March 2005).
  • March 2008 (Revised July 2009)
  • Case

U.S. Subprime Mortgage Crisis: Policy Reactions (A)

By: Laura Alfaro and Renee Kim
By March 2008, the U.S. Government and the U.S. Federal Reserve Board had taken various policy measures over the last few months to tackle the subprime mortgage crisis that threatened to drag the economy into a recession. The Bush administration approved a fiscal... View Details
Keywords: Financial Crisis; Inflation and Deflation; Central Banking; Mortgages; Policy; Business and Government Relations; United States
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Alfaro, Laura, and Renee Kim. "U.S. Subprime Mortgage Crisis: Policy Reactions (A)." Harvard Business School Case 708-036, March 2008. (Revised July 2009.)
  • Article

Debt Maturity: Is Long-Term Debt Optimal?

By: Laura Alfaro and Fabio Kanczuk
We model and calibrate the arguments in favor and against short-term and long-term debt. These arguments broadly include: maturity premium, sustainability, and service smoothing. We use a dynamic equilibrium model with tax distortions and government... View Details
Keywords: Borrowing and Debt; Investment Return; Development Economics; Taxation; Risk and Uncertainty; Cost; Interest Rates; Developing Countries and Economies; Welfare; United States; Brazil
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Alfaro, Laura, and Fabio Kanczuk. "Debt Maturity: Is Long-Term Debt Optimal?" Review of International Economics 17, no. 5 (November 2009): 890–905. (Also Harvard Business School Working Paper, No. 06-005 and NBER Working Paper No. 13119.)
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