Trust between parties should drive contract design: if parties were suspicious about each others' reaction to unplanned events, they might agree to pay higher costs of negotiation ex ante to complete contracts. Using a unique sample of U.S. consulting contracts and a negative shock to trust...

Trust between parties should drive the negotiation and design of contract: if parties did not trust each others' reaction to unplanned events, they might agree to pay higher costs of negotiation to complete contracts. Using a unique sample of U.S. principal-agent consulting contracts and a...

Trust between parties should drive contract design: if parties were suspicious about each others' reaction to unplanned events, they might agree to pay higher costs of negotiation ex ante to complete contracts. Using a unique sample of U.S. consulting contracts and a negative shock to trust...

Using a novel data set based on individual resumes of public firm employees, we propose a monthly index of aggregate labor flow that measures the dynamics of firm employment. We find that the index can predict the economic outputs significantly: an increase in the index leads to greater...

We propose an employee sentiment index, complementing investor sentiment and manager sentiment indices, and find that high employee sentiment predicts low monthly (weekly) market returns significantly both in- and out-of-sample. The predictability can also deliver sizable economic gains for...

Trust between parties should drive the negotiation and design of contract: if parties did not trust each others' reaction to unplanned events, they might agree to pay higher costs of negotiation to complete contracts. Using a unique sample of U.S. principal-agent consulting contracts and a...