We conduct a difference-in-differences analysis to study the potential effect of marijuana use on domestic violence. Our identification exploits variations in the implementation of recreational marijuana legalization (RML) in Colorado and Kansas. The Colorado RML implementation in 2014 leads to...

We show that change in Grayscale Bitcoin Trust premium is the single most significant predictor of Bitcoin daily return. This sentiment measure is similar to the closed-end fund discount measure as in Baker and Wurgler (2006), but more likely to reflect the excess demand from traditional...

We find that the relationship between reference-dependent preferences (RDP) and future stock returns hinges on national culture. While the positive pricing of RDP dominates worldwide, cultural differences explain the cross-market variation in this relationship. Consistent with the notion that...

Exploiting the implementation of the NOx Budget Trading Program (NBP), we show that a regional environmental regulation can have an unintended emission spillover effect from NBP-regulated power plants to manufacturing plants not regulated by the NBP via hikes in electricity prices. Our...

This paper documents that racial differences in credit distribution during a general mortgage credit expansion can lead to unintended negative consequences on crime. Exploiting a federal mortgage market deregulation, we find a significant increase in mortgage approval to white borrowers, while...

Using proprietary loan screening data, we document that loan officers engage in “attention discrimination”: they exert less effort reviewing ex-ante disadvantage applicants, leading to higher rejection rates than otherwise justified by those applicants’ credit quality. Attention...

We propose that active options markets facilitate shareholder activism and improve informational efficiency, thereby enhancing corporate social responsibility (CSR) performance. We find supportive evidence that options trading is positively related to firms’ CSR scores. Our identification...