To shed light on the empirical relevance of the limits to arbitrage, we study hedge funds’ trading patterns in the stock market during liquidity crises. Consistent with arbitrageurs’ limited ability to provide liquidity, we find that at the time of liquidity crises hedge funds reduce their...

A review of research evidence suggests that low levels of educationalattainment are crucial in generating and sustaining social exclusion. Testscores at school are the most effective predictor of many adult outcomes.School attendance and soft skills are also important. Reviewing the...

Existing evidence showed that:- local environmental problems are widespread but worse in low-income areas- there is little evidence that wider environmental concerns are less in low-incomecommunities- residents in low-income areas often face different barriers and incentives for action fromthose...

This paper is concerned with the effect of nonmonetary incentiveson behavior, in particular with the study of social pressure as adeterminant of corruption. We offer empirical evidence that shows howprofessional soccer referees favor home teams in order to satisfy thecrowds in the stadium....

We exploit an incentive change in professional soccer leagues aimed at encouraging more attacking and goal scoring to obtain evidence on the effect ofstronger incentives on productive and destructive effort. Using as control thebehavior of the same teams in a competition that experienced no...