Published in 2014 in Oxford Review of Economic Policy, Volume 30, Issue 4.
ABSTRACT: Field experiments are popular again in policy circles. There are various types of field experiments, with complementary strengths and weaknesses for different policy questions. There is also a lot of needless hype about what field experiments can do.… more »
ABSTRACT: This paper studies the impact of mandatory portfolio disclosure of mutual funds on the liquidity of disclosed stocks and on fund performance. We consider a theoretical model of informed trading with different mandatory disclosure frequencies. Using a regulation change in May 2004 that increased the frequency of mandatory disclosure, we find… more »
ABSTRACT. Risk and time preferences influence the insurance purchase decisions under uncertainty. Accident forgiveness, often considered as premium insurance,” protects policyholders against a premium increase in the next period if an at-fault accident occurs. In this paper, by conducting a unique experiment in the controlled laboratory conditions, we examine the role of… more »
Published in 2014 in The European Journal of Development Research, Volume 26, Issue 1.
ABSTRACT: The expression “impact evaluation” means different things to different people, but to most economists now it means the use of randomized controlled trials (RCTs) or “quasi-experiments.” I want to focus on that side of the research and… more »
ABSTRACT. Identifying time preferences with laboratory experiments demands attention to theoretical, experimental and econometrics issues. Andreoni and Sprenger [2012a] propose a single choice task and several econometric methods that seek to address these issues. The choice task requires subjects to make portfolio allocations between sooner and later payments of money. All theories… more »
Published in 2014 in Accident Analysis and Prevention, Volume 62.
ABSTRACT. We examine the subjective risks of driving behavior using a controlled virtual reality experiment. Use of a driving simulator allows us to observe choices over risky alternatives that are presented to the individual in a naturalistic manner, with many of… more »
ABSTRACT. A firm’s customers and suppliers make relationship-specific investments (RSI) whose value reduces if the firm undertakes risky investments. We hypothesize that the risk-taking incentives in the firm CEO’s compensation will lower the RSI by firms up and down in the vertical channel. We provide significant evidence that customer/supplier RSI declines… more »
ABSTRACT. This study examines whether accounting comparability is associated with the contracting cost of private loans. Using a sample of U.S. public firms from the years 1982 to 2009, we find strong evidence that accounting comparability is significantly negatively associated with private loan interest spread, consistent with the view that accounting comparability… more »
Published in 2016 in Management Science, Volume 62, Issue 5.
ABSTRACT. Financial institutions define their marginal cost of risk on the basis of the gradients of arbitrarily chosen risk measures. We reverse this approach by calculating the marginal cost for a profit-maximizing firm with risk-averse counterparties, and then identifying the risk… more »