AbstractThe existence of collective reputation implies an important externality. Among firms trading internationally, quality shocks about one firm’s products could affect the demand of other firms from the same origin country. We study such a reputati…
AbstractThis paper introduces forward-looking measures of the network connectedness of fears in the financial system arising due to the good and bad beliefs of market participants about uncertainty that spreads unequally across a network of banks. We a…
AbstractWe present evidence consistent with time-varying risk preferences among automobile drivers. Exploiting a unique data set of agents’ high-frequency driving behavior collected by a mobile phone application, we show that drivers drive more conserv…
AbstractWe introduce NLK, a model that connects the Nash equilibrium (NE) and level-k. It allows a player in a game to believe that her opponent may be either less or as sophisticated as she is, a view supported in psychology. We apply NLK to data from…
AbstractHealth-based drinking water violations affect about one in twelve Americans annually, yet the benefits of drinking water regulation are not well understood. I exploit plausibly exogenous variation in water quality violation timing to estimate t…
AbstractIn imperfectly competitive settings, a firm’s price depends on its own costs as well as those of its competitors. We demonstrate that this has important implications for the estimation and interpretation of pass-through. Leveraging a large inpu…
AbstractThis paper assesses the impact of job protection deregulation on the labor share in a sample of 26 advanced economies during the 1970–2013 period, using a newly constructed dataset of major reforms in this area. We employ a difference-in-differ…
AbstractI study the effects of prison quality on recidivism using individual-level data from Colombia. To estimate causal effects, I leverage the quasi-random assignment of inmates to newer, less crowded, and higher service prisons. For inmates assigne…
AbstractThis paper develops and estimates a New Keynesian (NK) model with endogenous technology. It shows that introducing endogenous technology can solve three important puzzles that conventional NK models face: the inflation persistence, disinflation…
AbstractWe examine price negotiation in the payment card industry by exploiting a unique merchant-, industry-, and city-level data set. Motivated by the substantial variation in acquirer fees and heterogeneous merchant card transactions, we use Nash ba…