It is well known that the no-arbitrage condition in forward markets is obtained as a feature of the equilibrium if the model allows for strategic behavior on the part of the buyers. We experimentally test for the no-arbitrage condition in a forward market by allowing for active buyers. We test...

This paper shows how to uniquely price non-traded assets using no-arbitrage in an otherwise friction-less market setting. The approach requires the assumption that the hedging error, properly defined, is non-priced or idiosyncratic risk. This methodology can be applied to private loans, illiquid...

The civil examination system (Keju) created a meritocratic bureaucracy in imperial China. Utilizing hand-collected career-path data of 5,353 bureaucrats over 1,400 years (265-1644 CE) and a difference-in-differences strategy, this paper reveals a hidden flaw in the system: while it increasingly...