Agglomeration economies are the external benefits earned from clustering of industries and people in cities. The study assumes unbridled clustering of population in emerging urban agglomerations turning economies into diseconomies. This study empirically investigates the heterogeneous...

We develop a data-rich measure of expected macroeconomic skewness in the US economy. Expected macroeconomic skewness is strongly procyclical, mainly reflects the cyclicality in the skewness of real variables, is highly correlated with the cross-sectional skewness of firm-level employment growth,...

The principal component analysis (PCA) is a staple statistical and unsupervised machine learning technique in finance. The application of PCA in a financial setting is associated with several difficulties, such as numerical instability and nonstationarity. We attempt to resolve them by proposing...

The ecologically unequal exchange (EUE) literature has provided ample empirical evidence for asymmetric transfer of material and energy resources from low-income to high-income countries. However, research has not been able to clearly specify the causal mechanisms driving these processes. This...

This paper uses a rich weekly price database from the largest supermarket in Uruguay to analyze the relationship among prices, micro-level sales, and business cycle conditions. On average, 7% of products were on sale each month, and we show a positive and statistically significant but small...

I use Instrumented Principal Component Analysis (IPCA) on delta-vega-neutral portfolios which remove exposures to stock prices and volatility to find that the first 2 IPCA factors can explain cross-section returns better than observable factors. The first factor can be explained by the...