Asset managers face increasing pressure to only hold firms that meet net-zero carbon emissions targets. We model how these mandates incentivize firms to address the global-warming externality through investments in decarbonization capital. A firm that invests receives a lower cost of capital by...

Economic theories posit that bank liability insurance is designed as serving the public interest by mitigating systemic risk in the banking system through liquidity risk reduction. Political theories see liability insurance as serving the private interests of banks, bank borrowers, and...

Our distance-score methodology for constructing backward-dispersion scores is an improvement over the counting methodology that the Hall, et al. (2001) measures use because (a) it captures the effects of newly-synthesized technological-class codes that are different than the technology-class...

We develop a tractable continuous-time consumption-savings model for a liquidity-constrained agent who faces both permanent and transitory income shocks under incomplete markets. We derive an explicitly-solved consumption function and show that the marginal (certainty equivalent) value of...

We use a combination of lab and field evidence to study whether preferences for immediacy and the tendency to procrastinate are connected as in O'Donoghue and Rabin (1999a). To measure immediacy, we have participants choose between smaller-sooner and larger-later rewards. Both rewards are paid...

Housing affordability is the main policy challenge for many large cities in the world. Zoning changes, rent control, housing vouchers, and tax credits are the main levers employed by policy makers. But how effective are they at combatting the affordability crisis? We build a new framework to...

We consider a principal who repeatedly interacts with a strategic agent holding private information. In each round, the agent observes an idiosyncratic shock drawn independently and identically from a distribution known to the agent but not to the principal. The utilities of the principal and...

Over the past four decades, government debt as a fraction of GDP has been on an upward trajectory in advanced economies, approaching levels not reached since World War II. While normative macroeconomic theories can explain the increase in the level of debt in certain periods as a response to...

We study the interaction between competitive markets that produce unequally distributed welfare gains and elections through which the poor majority can redistribute income away from the rich minority. In our simple laboratory democracy, subjects first earn their income by trading in a double...

We develop an economic perspective on algorithmic fairness and the surrounding empirical, theoretical and policy issues. Our perspective draws from clear parallels between algorithms and issues in economics of discrimination, crime, personnel and technological innovation; as well as more subtle...