Using Italian data that includes both inflation forecasts of firms and external information on their balance sheets, we study the causal effect of changes in the dispersion of beliefs about future inflation on the misallocation of resources. We find that as disagreement increases, so does...

We show that carbon-price shocks affect firms’ investment and emission-intensity via a debt-channel. Our identification exploits a reform-driven carbon-price surge in the EU Emission Trading System (EU-ETS) and loan-level credit registry data for Italy. Highly-exposed ETS-firms increase their...

We use a meta-analysis to quantify the impact of misallocation of production factors on aggregate productivity. A key estimate in empirical studies on misal- location is the implied aggregate total factor productivity (TFP) loss due to the sub-optimal allocation of resources across firms. In our...

The problem of the fair allocation of indivisible items is a relevant and challenging economic problem with several applications. For small dimensional frameworks, the problem can be solved exactly by full enumeration of all the possible allocations of the items. For higher dimensional...

This paper studies the employment and reallocation effects of minimum wages in Germany in a search-and-matching model with endogenous job search effort and vacancy posting, multiple employment levels, a progressive tax-transfer system, and worker and firm heterogeneity. I find that minimum wages...

Inefficient environmental regulations can lead to the misallocation of abatement inputs between firms, resulting in an aggregate output loss. To combat pollution, the Chinese central government adopted a top-down approach via the cadre evaluation system in 2006. While effective in reducing...

We consider the problem of allocating a single object to the agents with payments. Agents have preferences that are not necessarily quasi-linear. We characterize the class of rules satisfying pairwise strategy-proofness and non-imposition by the priority rule. Our characterization result remains...

Conditions under which spectrum is allocated are significant in determining the market structure in the telecom sector which in turn affects the prices and the quality of mobile services. In a more concentrated market, the quantity of spectrum is less diluted, and operators can offer higher...

This study examines whether charitable giving increases if donors have more choice about how their donations are used. In a field experiment, employees of large Albanian companies were asked to donate to projects administered by Down Syndrome Albania. Treatments varied in whether participants...

Firms engage in product proliferation to take advantage of heterogeneous customers. Product upgrading, where a customer may be served with an upgrade to a higher quality product or service, has been an increasingly popular practice. Despite its popularity, there is limited understanding of how...