In this paper, we build a new test of rational expectations based on the marginal distributions of realizations and subjective beliefs. This test is widely applicable, including in the common situation where realizations and beliefs are observed in two different datasets that cannot be matched....

Is there a gap between the profitability of a trading strategy “on paper” and that which is achieved in practice? We answer this question by developing a general technique to measure the real-world implementation costs of financial market anomalies. Our method extends Fama-MacBeth...

How much does a dramatic increase in technology improve healthcare quality in an upper-middle income country? Using rich vital statistics data on infant and maternal health outcomes, this study evaluates the effect of introducing technologically advanced perinatal hospitals in 24 regions of...