We explore whether a protective role for savings against future financial hardship exists using household level panel data. We jointly model the incidence and extent of financial problems, as well as the likelihood of having secured debt and the amount of monthly secured debt repayments,...

Vertical integration is central to understanding patterns of economic activity, but there has been limited empirical work measuring the extent to which firms own and utilize direct upstream and downstream production links for sourcing physical inputs. We use administrative data from Karnataka,...

We use the 2008 Mumbai terrorist attacks as a natural experiment to examine how exposure to extreme stress affects financial decision making, as measured by investors' stock trading activity and performance. We find that Mumbai investors trade less, perform worse, take longer time to react to...

Do safety nets affect investment? If so, how? Combining a natural experiment that gives guaranteed income to landowning farmers in India with transaction-level bank data and loan-level credit bureau data, we evaluate the impact of unconditional and perpetual guaranteed income on small farmer...

We develop and implement a Bayesian Semi-parametric model of demand under inter-product competition that enables us to assess the respective contributions of branding hierarchy and inter-product similarity to explaining and predicting demand. To incorporate branding hierarchy effects, we use...

We provide a theoretical justification for the widely used and yet only empirically verified approach of using Asymmetric Laplace Density(ALD) in Bayesian Quantile Regression. We derive sufficient conditions for posterior consistency of the quantile regression parameters even if the true...

Simultaneously modeling multiple quantiles by possibly incorporating constraints across quantiles, in particular that of monotonicity, has been an important problem. While recent attempts to address this problem focus mostly on the monotonicity issue, we take a different route using a Bayesian...

We propose a joint model to combine models for hospital visits and out-of-pocket medical expenditures. It allows for the presence of non-linear effects of covariates using splines to capture the effects of aging on healthcare demand. Sample heterogeneity is modeled robustly with the random...

This article examines the average cost function for property and casualty insurers. Cost function describes the relationship between a firm’s minimum production cost and outputs. The comparison of cost functions could shed light on the relative cost efficiency of individual firms, which is of...

Climate change is a “crisis multiplier” that has profound effects on various aspects of household decisions. We study the impact of climate change concern on household’s climate-risk-based investment decisions using administrative account-level data of all retail investors from the...