This paper uses geography to shed light on the role of asymmetric information in asset pricing. Demonstrating that investors possess significant informational advantages in evaluating nearby investments, we find that active mutual fund managers overweight proximate firms in their portfolios and...

I uncover a new force towards increasing dominance (the property whereby, in dynamic games, the leader tends to increase her lead in expected terms). The new effect results from the strategic choice of covariance in races. I assume that players must choose not the amount of resources to spend...

We are interested in estimating the average effect of a binary treatment on a scalar outcome. If assignment to the treatment is independent of the potential outcomes given pre-treatment variables, biases associated with simple treatment-control average comparisons can be removed by adjusting for...

This paper addresses the question of whether R&D should be carried out by an independent research unit or be produced in-house by the firm marketing the innovation. We define two contractual structures. In an independent structure, the firm that markets the innovation buys it from an independent...

This paper analyzes the voting behavior of Euro-parliamentarians. The roll call data from the plenary sessions of European parliament(EP) during the third and fourth legislatures is used to estimate legislators' preferences. Applying the spatial models of roll call voting to the EP, we...

Monetary policy research using time series methods has been criticized for using more information than the Federal Reserve had available in setting policy. To quantify the role of this criticism, we propose a method to estimate a VAR with real-time data while accounting for the latent nature of...

It is a well accepted empirical result that forward exchange rate unbiasedness is rejected in tests of the `differences regression' of the change in the logarithm of the spot exchange rate on the forward discount. The result is referred to in the International Finance literature as the forward...

The paper presents a complete characterization of the local dynamics for optimal control problems of 4-dimensional systems of ordinary differential equations, by using geometrical methods. We prove that the particular structure of the Jacobian implies that the 8 th order characteristic...

Recently financial econometricians have shifted their attention from point and interval forecasts to density forecasts mainly to address the issue of the huge loss of information that results from depicting portfolio risk by a measure of dispersion alone. One of the major problems in this area...

Recently financial econometricians have shifted their attention from point and interval forecasts to density forecasts mainly to address the issue of the huge loss of information that results from depicting portfolio risk by a measure of dispersion alone. One of the major problems in this area...