"Using daily returns on a set of hedge fund indices, we study (i) the properties of the indices' conditional density functions and (ii) the presence of asymmetries in conditional correlations between hedge fund indices and other investments and between hedge fund indices themselves. We use the...

Economists commonly control for neighborhood indicators, such as median income, in underwriting models that test for redlining. Many such indicators are highly correlated with neighborhood racial composition and therefore have the capacity to "explain away" the role of race in lending decisions....

The relationship between competition and innovation has drawn great attention from economists and strategic management researchers. However, the empirical evidence for this relationship remains inconsistent. On the one hand, the Schumpeterian viewpoint credits that the large firms with...

Firms might not launch a next generation product as soon as a more efficient technology or a better product design is ready. We use a stylized model to analyze firms' product launch and upgrade decisions in an incumbent-vs-entrant setting. We find that large profit margins from the next...

This paper presents a feedforward network estimation algorithm that addresses two issues, (i) avoiding local inferior minima to the performance criteria, and (ii) imposing a priori constraints to improve generalization and test economic hypotheses. The algorithm combines methods either...