We introduce a general decision tree framework to value an option to invest/divest in a project, focusing on the model risk inherent in the assumptions made by standard real option valuation methods. We examine how real option values depend on the dynamics of project value and investment costs,...

This paper examines how transparency on climate risk affects asset values in the housing market in aggregate. I argue that information frictions on climate risk may lead to a risk aversion premium for the entire market, resulting in a potential “market for lemon”. However, this can be...

A decentralized exchange (DEX) records every transaction on a blockchain, so it is much slower than a centralised exchange (CEX) which is only linked to a blockchain via a wallet, so no trades are recorded directly on the chain. While all CEXs use a traditional limit order book, most DEXs use a...

For liquidity providers in the rapidly-growing crypto options market as well as potential institutional investors in crypto options, we test the joint efficiency of the bitcoin options and perpetual futures markets, and likewise for ether, and identify the frequency and magnitude of arbitrage...

Informal care is a primary source of support for older adults with cognitive impairment but is less available to those who live alone. We leverage the U.S. Health and Retirement Survey 2000-2018 to examine trends in the prevalence of physical disability and social support among older adults with...

In light of the low public awareness of ozone pollution and the potential health threats posed by long-term ozone exposure, this study estimates the causal effect of long-term ozone exposure on respiratory mortality. By employing an instrumental variable based on the long-distance transmission...

Assortment optimization has received active explorations in the past few decades due to its practical importance. Despite the extensive literature dealing with optimization algorithms and latent score estimation, uncertainty quantification for the optimal assortment still needs to be explored...