This paper theoretically shows that changes in the distance elasticity of trade can be connected to welfare changes that depend on bilateral distance measures and expenditure shares of countries. Empirical results based on international and domestic trade data from the last two centuries show...

In recent years, commercial banks have substantially reduced the number of theirbranch offices. We address the question of whether or not the increased distance tolenders caused by branch office closures translates into a lower credit supply for smalland medium sized enterprises (SMEs). We use a...

Insolvency often precedes default for nonpayment of debt. A firm is instantaneously insolvent whenever the market value of its assets is below the face value of its debt. Default occurs when the firm is instantaneously insolvent when the firm's debt matures. The natural log of the ratio of the...

This paper introduces a new innovation data source to re-examine how spatial distance affects the diffusion of ideas and innovations in an economy. We exploit the descriptions of products and services contained in U.S. trademark registrations during 1980-2012 to identify terms (tokens) not...

The distance between short- and long-run moving averages of prices (MAD) predicts future equity returns in the cross-section. Annualized value-weighted alphas from the accompanying hedge portfolios are around 9%, and the predictability goes beyond momentum, 52-week highs, profitability, and...

Despite its significance in migration decisions, scholars rarely explore the migration distance effect deeper than the first level of interpretation derived from the simple neoclassical theory of migration. This study revisits the migration distance effect in the spirit of Knightian distinction...

We study how lender-shareholder distance affects loan contract terms. We hypothesize that an increase in lender-shareholder distance aggravates the lender's information asymmetry vis-à-vis shareholders by making it difficult to observe shareholders' risk preferences and their influence on...

The study aims to investigate the change in the habits of Super Market consumers regarding the realization of purchases from a distance, after the announcement of the measures for the protection of the citizens from the Coronavirus disease (COVID-19). Specifically, the article examines the...

We investigate the effect of analyst distance in the credit rating industry and show that issuers with analysts located in more distant offices have lower default rates than issuers with closer analysts and the same rating. Our results are robust to an analyst home bias and suggest that more...