The Technical Default Spread
We study the quantitative impact of lender control rights on firm investment, asset prices, and the aggregate eco

Emilio Bisetti, Kai Li, Jun Yu*

Working Paper | No. 20211101 |

Keywords: Loan covenants, technical default, creditor control rights, cross section of stock returns

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Dynamic Price Competition, Learning-By-Doing and Strategic Buyers
We examine how strategic buyer behavior affects equilibrium outcomes in a model of dynamic price competition where

Andrew Sweeting, Dun Jia, Shen Hui, Xinlu Yao

Working Paper | No.20210908 |

Keywords: Dynamic competition, learning-by-doing, strategic buyers, dynamic games, multiple equilibria

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Adjustable Regret for Continuous Control of Conservatism and Competitive Ratio Analysis
A major issue of the increasingly popular robust optimization is the tendency to produce overly conservative solut

Yingjie Lan

Working Paper | No.20210907 |

Keywords: Robust optimization, decision criteria, over-conservatism, online optimization, competitive ratio analysis, one-way trading

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The Influence of Media Slant on Short Sellers
Using the positive shift in tone of Fox News coverage of macroeconomic news after the Republican Bush election i

April Knill, Baixiao Liu, John J. McConnell, Glades McKenzie

Working Paper | No.20210906 |

Keywords: Media Slant, short seller, investment decisions

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On the Foundations of Competitive Search Equilibrium with and without Market Makers
The literature offers two foundations for competitive search equilibrium, a Nash approach and a market-maker approa

James Albrecht, Xiaoming Cai, Pieter Gautier, Susan Vroman

Working Paper | No.20210905 |

Keywords: Multiple application, competitive search, market makers, efficiency

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Human Capital Investment and Development: The Role of On-the-Job Training
Workers in richer countries experience faster rates of wage growth over their lifetimes than workers in poorer co

Xiao Ma, Alejandro Nakab, Daniela Vidart

Working Paper | No.20210904 |

Keywords: On-the-Job Training, human capital accumulation, lifecycle wage growth

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Learning by Exporting and Wage Profiles: New Evidence from Brazil
Export activity shapes workers’ experience-wage profiles Using detailed Brazil-ian manufacturing employer-employe

Xiao Ma, Marc-Andreas Muendler, Alejandro Nakab

Working Paper | No.20210903 |

Keywords: Export activity, wage profiles, human capital accumulation

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Learning about the Consumption Risk Exposure of Firms
We structurally estimate an investment-based asset pricing model, where firms’ exposure to macroeconomic risk

Yongjin Kim, Lars-Alexander Kuehn, Kai Li

Working Paper | No.20210902 |

Keywords: Parameter uncertainty, Bayesian learning, systematic consumption risk, investment-based asset pricing, SMM

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Delayed Crises and Slow Recoveries
We present a rational expectations model of credit-driven crises In our model econ-omy, banks can operate in two

Xuewen Liu, Pengfei Wang, Zhongchao Yang

Working Paper | No. 20210901 |

Keywords: Credit extensions, synchronization, externality, economic recoveries

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Political Connections, Competition, and Innovation: Quasi-Experimental Evidence from Chinese Firms
This paper studies the causal impact of political connections on innovation Using a unique hand-collected data se

Lei Cheng, Zhimin Li*

Working Paper | No.20210706 |

Keywords: Political connections, corporate innovation, patent application, market competition, China

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