Regime Shifts in a Long-run Risks Model of U.S. Stock and Treasury Bond Markets
We study the joint determinants of stock and bond returns in a long-run risks model framework with regime shifts

Kai Li, Chenjie Xu

Working Paper | No. 20220705 |

Keywords: Regime shift, risks model, U S stock, treasury bond market

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The Unmeasured Finance in Misallocation
This paper documents a large overestimation of measured finance misallocation (Whited and Zhao, 2021) when lease-induced debt is ignored among US manufacturing firms Appropriately accounting for leases on the liability side translates into a 5 5% real va

Weiwei Hu, Kai Li, Yiming Xu

Working Paper | No. 20220704 |

Keywords: Lease-induced debt, External finance, Misallocation of finance

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Turbulent Business Cycles
Recessions are associated with sharp increases in turbulence that reshuffle firms’ productivity rankings To s

Ding Dong, heng Liu, Pengfei Wang

Working Paper | No. 20220703 |

Keywords: Turbulence,heterogeneous firms, financial frictions, reallocation, productivity, business cycles

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Trust and Contracts: Empirical Evidence
Trust between parties should drive contract design: if parties were suspicious about each others’ reaction to

Francesco D’Acunto, Jin Xie, Jiaquan Yao

Working Paper | No.20220702 |

Keywords: Empirical Contract Theory, Incomplete Contracts, Cultural Economics, Beliefs and Choice, Personnel Economics, Organizational Economics, FinTech and Textual Analysis, Consulting, Management

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Revisiting Granger Causality of CO2 on Global Warming: A Quantile Factor Approach
The relationship between global warming and CO2 is a long-standing question in the climate change literature In

Liang Chen, Juan J. Dolado, Jesús Gonzalo, Andrey Ramos

Working Paper | No. 20220501 |

Keywords: Global warming, CO2 emissions, quantile factor models, granger causality

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Short Squeezes
Building upon the premise that short squeezes are most likely to occur following a large one day price increase

Zhiqian Jiang, Baixiao Liu, Andrew Schrowang, Wei Xu

Working Paper | No. 20220304 |

Keywords: Short selling, short squeezes, short sale constraint, price reversals

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Motivating Collusion
We examine how executive compensation can be designed to motivate product market collusion We look at the 2013

Sangeun Ha, Fangyuan Ma, Alminas Žaldokas

Working Paper | No. 20220303 |

Keywords: Product market collusion, corporate governance, managerial compensation

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Delineating China’s Metropolitan Areas Using Commuting Flow Data
This paper provides the first delineation of China’s commuting-based metropolitan areas (MAs)using a new sourc

Ting Chen, Yizhen Gu, Ben Zou

Working Paper | No. 20220302 |

Keywords: Metropolitan areas, local labor market, commuting flows

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Lease-Adjusted Productivity Measurement
We document that leased capital accounts for more than 30% of the total productive physical assets used by US p

Weiwei Hu, Kai Li, Yiming Xu

Working Paper | No. 20220301 |

Keywords: Leased capital, productivity estimation, firm-level productivity, productivity growth, mismeasurement

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Leasing as a Mitigation Channel of Capital Misallocation
Leased capital accounts for about 20% of the total productive physical assets used by US publicly listed firms,

Kai Li, Yiming Xu

Working Paper | No. 20220103 |

Keywords: Leased capital, collateral constraint, capital misallocation, capital reallocation

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