This paper studies the response of arbitrageurs to adverse price shocks. We focus on short sellers and find that they cover their positions after suffering losses and increase them after experiencing gains. While this relationship is very strong for positions established due to perceived...

We study the form by which corruption is organized between politicians and entrepreneurs. Using a large-scale survey with data on extra-official payments, and exploiting variation in the gubernatorial office terms and in the market structure across states in Mexico, we examine the manner in...

In this paper we empirically assess bankruptcy as a legal process. We examine a comprehensive reform to corporate bankruptcy law in Mexico, which streamlined the legal process and limits on litigation. Then we outline the ways in which bankruptcy law design affect a series of outcome variables....