We provide the first comprehensive examination of hedge funds' long-equity positions and the performance of these stock holdings. Compared to mutual funds, hedge funds have higher turnover, weights further away from the market portfolio, prefer smaller opaque securities, and their trading moves...

I find that firms experiencing increases in import competition significantly reduce their leverage ratios by issuing equity and selling assets to repay debt. Using import tariffs and foreign exchange rates as instrumental variables for import penetration, I show that these results are not...

Who really wins from foreign direct investment (FDI) and by how much? Should winners care about corruption? Building on evidence of heterogeneity in the FDI-growth relationship, we propose a semiparametric model that allows corruption to influence the relationship between the conditioning...

How much are consumers willing to pay to signal their environmental consciousness? We identify the signaling value of an environmental public good by focusing on hybrid cars and exploiting the physical uniqueness of the Toyota Prius relative to hybrids that look identical to their non-hybrid...

Economists and environmental policymakers have recently begun advocating a bottom-up approach to climate change mitigation, focusing on reduction targets for groups of nations, rather than large scale global policies. We advance this discussion by taking a quantitative perspective, focusing on...

Empirical growth regressions typically include mean years of schooling as a proxy for human capital. However, empirical research often finds that the sign and significance of schooling depends on the sample of observations or the specification of the model. We use a nonparametric local-linear...

We propose a simple kernel estimator for semiparametric partial linear models with endogeneity in the nonparametric function. Compared to the existing backfitting estimator, our estimator is notationally simpler and relatively easier to implement. We also discuss data-driven bandwidth selection...