We study a natural experiment in which 1.5 million investors participate in allocation lotteries for Indian IPO stocks. Randomized IPO gains cause winning investors to increase applications to future IPOs and substantially increase portfolio trading volume in non-IPO stocks relative to lottery...

We study a unique field experiment in India in which 1.5 million stock investors face lotteries for the random allocation of shares. We find that the winners of these randomly assigned initial public offering (IPO) lottery shares are significantly more likely to hold them than lottery losers 1,...

We study a natural experiment in which 1.5 million investors participate in allocation lotteries for Indian IPO stocks. Investors who win the lottery and obtain IPO stocks that rise in value increase portfolio trading volume in non-IPO stocks relative to lottery losers; the effects are negative...

We incorporate a general model of frictions into the bunching-based elasticity estimator. This model relies on fewer parameters than the conventional approach, replacing bunching window bounds with a single "lumpiness parameter," while matching rich observed bunching patterns such as...

Real estate values are often under-reported to avoid transaction and property taxes, and to hide wealth built from tax-evaded income. We develop a new method to extract estimates of under-reporting, and employ this measure in the Mumbai real estate market. This approach compares the bunching of...

We study the performance of the bunching-based elasticity estimator when income adjustments are lumpy. In our parsimonious model, taxpayers choose their preferred income from random opportunity sets. The model features the standard elasticity of taxable income and a single additional...