Though the positive income gradient of child health is well documented in developed countries, evidence from developing countries is rare. Few studies attempt to identify a causal link between family income and child health. Utilizing unique longitudinal data from the China Health and Nutrition...

Though the positive income gradient of child health is well documented in developed countries, evidence from developing countries is rare. Few studies attempt to identify a causal link between family income and child health. Utilizing unique longitudinal data from the China Health and Nutrition...

In this paper, I study the dynamic delegation problem in a principal–agent model wherein an agent privately observes a persistently evolving state, and the principal commits to actions based on the agent's reported state. There are no transfers. While the agent has state-independent...

An employee's annual earnings fall by 13% the year her firm files for bankruptcy, and the present value of lost earnings from bankruptcy to six years following bankruptcy is 87% of pre-bankruptcy annual earnings. More worker earnings are lost in thin labor markets and among small firms. Ex ante...

Canada modified the capital adequacy test for property/casualty insurers to align regulatory surplus and firm risk. We explore the impact of this change on insurer surplus holdings. We find firms have not changed the level of surplus in response to risk characteristics in the capital adequacy...

This paper quantifies the “human costs of bankruptcy” by estimating employee wage losses induced by the bankruptcy filing of employers using employee-employer matched data from the U.S. Census Bureau’s LEHD program. We find that employee wages begin to deteriorate one year prior to...

Uncertainty has qualitatively different implications than risk in studying executive incentives. We study the interplay between profitability uncertainty and moral hazard, where profitability is multiplicative with managerial effort. Investors who face greater uncertainty desire faster learning,...

This paper quantifies the “human costs of bankruptcy” by estimating employee wage losses induced by the bankruptcy filing of employers using employee-employer matched data from the U.S. Census Bureau's LEHD program. We find that employee wages begin to deteriorate one year prior to...

How do the labor market values of executives' personal traits evolve over time? We propose and estimate an interactive fixed effects model, which allows for time-variant valuation of unobserved manager attributes. We find that managerial talent is the most important unobserved trait determining...