We present empirical evidence that the establishment of secondary stock exchanges spurs local high-tech entrepreneurship. We find a significant increase in high-tech entrepreneurial activities following the staggered launches of such stock exchanges, and this increase is disproportionally higher...

We examine the causal effect of tariff uncertainty on firms’ cost of debt. Our tests exploit a unique trade policy that reduces tariff uncertainty on Chinese imports without affecting the actual tariff rate: the U.S.-China Permanent Normal Trade Relations (PNTR). We find a significant drop in...

The 2018 U.S.-China trade war has spurred wide-spread debates about the effects of Chinese imports on U.S. society. We examine the effect of United States' conferral of Permanent Normal Trade Relations (PNTR) on China — a policy that eliminates the uncertainty of future tariff increases for...

Sparse alpha-norm regularization has many data-rich applications in Marketing and Economics. Alpha-norm, in contrast to lasso and ridge regularization, jumps to a sparse solution. This feature is attractive for ultra high-dimensional problems that occur in demand estimation and forecasting. The...