I present closed-form solutions for prices, portfolios, and beliefs in a model where four types of investors trade assets over time: naive investors who learn via a social network, ``fanatics'' possibly spreading fake news, and rational short- and long-term investors. I show that fanatic and...

We develop a portfolio-based framework to understand the deterioration of the U.S. net foreign asset (NFA) position and the returns earned on U.S. NFA (exorbitant privilege). We show global savings gluts and monetary policies widened the U.S. NFA position, while investor demand shifts offset...

Transit infrastructure is a critical asset for economic activity yet costly to build in dense urban environments. We measure the benefit of the Second Avenue Subway extension in New York City, the most expensive urban transit infrastructure project in recent memory, by analyzing local real...

Decisions supported by machine learning algorithms often have the goal of improving (and thus affecting) an outcome by means of an intervention. Common examples include influencing someone's purchasing behavior with an advertisement or increasing customer retention with a special offer....

Problem definition: Previous research has shown that early discharge of patients may hurt their medical outcomes. However, in many cases the “optimal” length of stay (LOS) and the best location for treatment of the patient are not obvious. A case in point is hematology patients, for whom...

This paper proposes a general framework/meta-policy to solve Revenue Management (RM) problems with demand learning and potentially large action space, constrained by initial unreplenishable resources. This framework combines the technique of primal-dual method in optimization and...

This commentary focuses on Article 30 of the UNGPs, which refers to the role of industry, multi-stakeholder, and other collaborative initiatives that are based on respect for human rights-related standards in addressing human rights matters. We consider the role of collaborative initiatives in...

I examine the real effects of macroprudential foreign exchange (FX) regulations designed to reduce risk-taking by financial intermediaries. I exploit a natural experiment in South Korea at the bank-level that can be traced through firms. The regulation limits the banks’ ratio of FX derivatives...

This paper develops a search model in which both the information obtained during the search process and the information possessed by consumers prior to search influence their choices. We estimate our model on a data set from an experiment that has two novel features: (i) it contains information...

During the 2020 COVID-19 epidemic, the US Congress passed the CARES Act that (among other measures) provides direct payments to households. Using a large debit cards database, we analyze consumer expenditures following the stimulus payments. We observe Zip code level daily transactions (approx....