It takes many years for more efficient electronic payments to be widely used, and the fees thatmerchants (consumers) pay for using those services are increasing (decreasing) over time. Weaddress these puzzles by studying payments system evolution with a dynamic model in a twosidedmarket setting....

Motivated by the emergence of various corporate social responsibility (CSR) rankings and awards, we study the impacts of distributional social comparison behavior of firms on CSR in a supply chain, consisting of one manufacturer and one retailer. Both the manufacturer and the retailer can choose...

Despite the increasing dominance of digital technology in modern communications, face-to-face interactions are believed to play an irreplaceable role in facilitating complex cross-border business transactions. However, empirical research to identify the impact often faces the challenge of...

Paying with a mobile phone is a cutting-edge innovation transforming the global payments industry. However, some advanced economies like the U.S. are lagging behind in mobile payment adoption. We construct a dynamic model with sequential payment innovations to explain this puzzle, which uncovers...

This paper provides an overhaul of the contribution of exports to industrial sulfur dioxide (SO2) emissions in Chinese cities. My estimation strategy exploits the import demand shocks of export destination markets (net of their demand for Chinese products) as a plausibly exogenous source of...

Prior research documents that asset growth is negatively associated with future firm performance. In contrast, we show that growth financed by product market stakeholders (i.e., “operating growth”) is positively associated with future firm performance. Investors and security analysts...