Showing 1 - 10 of 280
We study the implications of police discretion for public safety. Highway patrol officers exercise discretion over fines by deviating from statutory fine rules. Relying on variation across officers in this discretionary behavior, we find that harsher sanctions reduce future traffic offending and...
Persistent link: https://www.econbiz.de/10014372435
Given the use of an individual's arrest history for many economic and social outcomes, reducing conviction-less arrests (arrests that result in no charges or where the defendant is found not guilty) is an important policy goal. This paper examines which officers are making conviction-less...
Persistent link: https://www.econbiz.de/10015171679
Do investors anticipate that demands for racial equity will impact companies? We explore this question in the context of the Black Lives Matter (BLM) movement--the largest racially motivated protest movement in U.S. history--and its effect on the U.S. policing industry using a novel dataset on...
Persistent link: https://www.econbiz.de/10014337839
The US spends more than 4 trillion dollars per year on health care, largely conducted by private providers and reimbursed by insurers. A major concern in this system is overbilling, waste and fraud by providers, who face incentives to misreport on their claims in order to receive higher...
Persistent link: https://www.econbiz.de/10014226143
We investigate how firms manage financial default risk (on debt) and operational default risk (on delivery obligations). Financially constrained firms reduce operational hedging through inventory and supply chain in favor of cash holdings. Our model predicts that firms' markup increases with...
Persistent link: https://www.econbiz.de/10015194985
This paper examines how governance and risk management affect risk-taking in banks. It distinguishes between good risks, which are risks that have an ex ante private reward for the bank on a stand-alone basis, and bad risks, which do not have such a reward. A well-governed bank takes the amount...
Persistent link: https://www.econbiz.de/10011955539
Over the last twenty years, the consensus view of systemic risk in the financial system that emerged in response to the banking crises of the 1930s and before has lost much of its relevance. This view held that the main systemic problem is runs on solvent banks leading to bank panics. But...
Persistent link: https://www.econbiz.de/10012467237
Systemic risk is commonly used to describe the possibility of a series of correlated defaults among financial institutions---typically banks---that occur over a short period of time, often caused by a single major event. However, since the collapse of Long Term Capital Management in 1998, it has...
Persistent link: https://www.econbiz.de/10012467485
What do academics have to offer market risk management practitioners in financial institutions? Current industry practice largely follows one of two extremely restrictive approaches: historical simulation or RiskMetrics. In contrast, we favor flexible methods based on recent developments in...
Persistent link: https://www.econbiz.de/10012467618
This paper provides an empirical analysis of the risk of trading revenues of U.S. commercial banks. We collect quarterly data on trading revenues, broken down by business line, as well as the Value at Risk-based market risk charge. The overall picture from these preliminary results is that there...
Persistent link: https://www.econbiz.de/10012467650