On utility maximization without passing by the dual problem....
We treat utility maximization from terminal wealth for an agent dynamically investing in a continuous-time financial market and receiving a possibly unbounded random endowment. The utility function is...
View ArticleImmigration and the Rise of American Ingenuity -- by Ufuk Akcigit, John...
This paper builds on the analysis in Akcigit, Grigsby, and Nicholas (2017) by using U.S. patent and Census data to examine macro and micro-level aspects of the relationship between immigration and...
View ArticleThe Anatomy of Sentiment-Driven Fluctuations -- by Sushant Acharya, Jess...
We characterize the entire set of linear equilibria of beauty contest games under general information structures. In particular, we focus on equilibria in which sentiments, that is self-fulfilling...
View ArticleThe Country Chronologies to Exchange Rate Arrangements into the 21st Century:...
Detailed country-by-country chronologies are an informative companion piece to our paper "Exchange Arrangements Entering the 21st Century: Which Anchor Will Hold?," which provides a comprehensive...
View ArticleExchange Arrangements Entering the 21st Century: Which Anchor Will Hold? --...
This paper provides a comprehensive history of anchor or reference currencies, exchange rate arrangements, and a new measure of foreign exchange restrictions for 194 countries and territories over...
View ArticleThe Global Rise of Corporate Saving -- by Peter Chen, Loukas Karabarbounis,...
The sectoral composition of global saving changed dramatically during the last three decades. Whereas in the early 1980s most of global investment was funded by household saving, nowadays nearly...
View ArticleThe Recent Growth Boom in Developing Economies: A Structural Change...
Growth has accelerated in a wide range of developing countries over the last couple of decades, resulting in an extraordinary period of convergence with the advanced economies. We analyze this...
View ArticleEstimation of Risk Contributions with MCMC. (arXiv:1702.03098v1 [q-fin.RM])
Determining risk contributions by unit exposures to portfolio-wide economic capital is an important task in financial risk management. Despite its practical demands, computation of risk contributions...
View ArticleSelf-Employment Dynamics and the Returns to Entrepreneurship -- by Eleanor W....
Small business owners and others in self-employment have the option to transition to paid work. If there is initial uncertainty about entrepreneurial earnings, this option increases the expected...
View ArticleBank Health Post-Crisis -- by Kyriakos T. Chousakos, Gary B. Gorton
Economic growth is persistently low following a financial crisis, possibly because of a continuing weal banking system. In a financial crisis bank health is significantly damaged. Post-crisis...
View ArticleEvaluating Measures of Hospital Quality -- by Joseph J. Doyle, Jr., John A....
In response to unsustainable growth in health care spending, there is enormous interest in reforming the payment system to "pay for quality instead of quantity." While quality measures are crucial to...
View ArticleA Narrative Analysis of Mortgage Asset Purchases by Federal Agencies -- by...
This paper provides a narrative analysis of regulatory policy changes affecting the purchases and holdings of mortgages and related securities of five US government entities over the 1968-2014 period....
View ArticleWhen Britain turned inward: Protection and the shift towards Empire in...
International trade became much less multilateral during the 1930s. Previous studies, looking at aggregate trade flows, have argued that discriminatory trade policies had comparatively little to do...
View ArticleWorker Betas: Five Facts about Systematic Earnings Risk -- by Fatih Guvenen,...
The magnitude of and heterogeneity in systematic earnings risk has important implications for various theories in macro, labor, and financial economics. Using administrative data, we document how the...
View ArticleBankruptcy Spillovers -- by Shai Bernstein, Emanuele Colonnelli, Xavier...
How do different bankruptcy approaches affect the local economy? Using U.S. Census microdata at the establishment level, we explore the spillover effects of reorganization and liquidation on...
View ArticleWhat is the Price of Tea in China? Towards the Relative Cost of Living in...
We examine the price and variety of products at the barcode level in cities within China and the United States. In both countries, there is a greater variety of products in larger cities. But in China,...
View ArticleShort-Run Effects of Lower Productivity Growth. A Twist on the Secular...
Since 2010, U.S. GDP growth has been anemic, averaging 2.1% a year, and this despite interest rates very close to zero. Historically, one would have expected such low sustained rates to lead to much...
View ArticleBeyond the Classroom: The Implications of School Vouchers for Church Finances...
Governments have used vouchers to spend billions of dollars on private education; much of this spending has gone to religiously-affiliated schools. We explore the possibility that vouchers could create...
View ArticleMonetary Policy and the Predictability of Nominal Exchange Rates -- by Martin...
This paper documents two facts about the behavior of floating exchange rates in countries where monetary policy follows a Taylor-type rule. First, the current real exchange rate is highly negatively...
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