Wei-Fong Pan ♦ This study examines the impact of recreational marijuana laws (RMLs) on firm-level employment using an imputation-based difference-in-differences approach across U.S. states. RMLs significantly reduce employment, particularly among firms with high-skilled labour, strong union presence, permissive corporate cultures,…
Andreas Ek, Gunes Gokmen, and Kaveh Majlesi ♦ This paper studies how cultural heritage influences the differences in risk taking in financial markets. We combine data on the asset allocation of second-generation immigrants in Sweden with risk taking culture in…
Niclas Käfer, Mathis Mörke, Florian Weigert, and Tobias Wiest ♦ We utilize Bayesian model averaging to estimate a stochastic discount factor (SDF) for single-stock options. A Bayesian model averaging SDF outperforms reduced-form benchmark models in-sample and out-of-sample in pricing option…
Jie Chen, Chenxing Jing, Kevin Keasey, and Bin Xu ♦ We investigate how the government, as a customer, affects a supplier’s environmental policies. We find that government contractors have significantly lower levels of toxic pollution. Exploring the mechanisms, we show…
Jonathan Fu, Vasso Ioannidou, and Mrinal Mishra ♦ This paper examines how the entry of commercial lenders transforms microfinance markets, focusing on borrower outcomes and market-wide spillovers. Using detailed credit registry data, we show that increased competition improves loan terms…
Arka P. Bandyopadhyay, Dongshin Kim, and Patrick S. Smith ♦ This paper documents adverse selection in Ginnie Mae issuers’ early buyout decisions. Conditional on default, we find a one percentage point increase in interest rate spread increases the probability of…
