In the United States, the lowest interest rate cap on small-dollar installment loans 17 percent is in Arkansas. No small-dollar installment lenders operate within Arkansas, while they do in all six states bordering Arkansas providing a natural experiment to examine the effects of a binding...

We introduce a decomposition showing precisely how actively-managed portfolio returns can be separated into three measurable components that we call Opportunity, Foresight, and Active Management Risk. Opportunity reflects the degree to which the investment opportunity set contains exploitable...