Since Markowitz proposed modern portfolio theory, portfolio optimization has been being a classic topic in financial engineering. Although it is generally accepted that options help to improve the market, there is still an improvement for the portrayal of their unique properties in portfolio...

Men have fallen behind women in education in developed countries. Why? I study the impact of a transitory increase in the opportunity cost of schooling on men's and women's educational attainment. I exploit a reform in Iceland that lowered income taxes to zero for one year and compare teenagers...

Exclusion zones, like protected areas or setback distances, are the most common policy instrument to mitigate environmental impacts of human land-use, including the deployment of renewable energy sources. While exclusion zones may provide environmental benefits, they may also bring about...

Men have fallen behind women in education in developed countries. Why? I study the impact of a transitory increase in the opportunity cost of schooling on men's and women's educational attainment. I exploit a reform in Iceland that lowered income taxes to zero for one year and compare teenagers...

Firms are using freemium pricing strategies in many industries, including software, mobile apps, games, and streaming music and video. Freemium combines free services supported by advertising with premium services supported by subscriptions. We obtain the firm's optimal pricing strategy when...

Exclusion zones, like protected areas or setback distances, are the most common policy instrument to mitigate environmental impacts of human land-use, including the deployment of renewable energy sources. This paper aims to understand and quantify the drivers of opportunity costs related to...

The study of the relationship between copyright and creativity is a core research program in the field of cultural economics (Weber 2017, Bille etal. 2020). Another part of the canon is that artists gain psychic income from moral rights when a work of art is identified with its creator, whereas...

We examine the relationship between customer wait times and future price inflation using cell- phone location data. We focus our analysis on restaurants in the U.S. over the years 2019–2021 and document a stark increase in abnormal wait times starting in mid-2020. At the MSA level, we find...

The European Union Green Deal aims at curbing greenhouse gas emissions and introducing clean energy production. But to achieve energy efficiency, the opportunity cost of different energies must be assessed. In this article, two different energy self-sufficient systems for wastewater treatment...

This article provides empirical evidence showing that the opportunity cost of time explains the frequency of household food waste. We analyze three waves of a longitudinal panel survey representative of the French population. In the second wave, the respondents were asked whether they had wasted...

Here, we use an input distance function approach to determine the shadow price of carbon dioxide (CO2), technical efficiency and potential for emission reductions of the industrial sectors of China and Korea, and impact of carbon trading on costs. Data from 20 industries in the manufacturing...

Does the composition of governance affect firm outcomes? We exploit the timings and thresholds of a gender quota in boards of directors and supervisory boards to causally determine the impact of a change in leadership on performance. Using a novel design and data on boards, we find that firms...

Because economic principles suggest that fertility and reproduction are required for economic success, freedom of choice for women exists in tension against an economic imperative. Yet, agentic rhetoric in American culture positions fertility and reproduction as "choice." While "choice" may be...

Using panel data of 83 counties observed from 2000 to 2015, the marginal abatement cost (MAC) of soil erosion is accurately evaluated by directional distance function with convex expectile regression. Besides, we further explore how the external variables affect shadow prices and the choice of...

Does the composition of governance affect firm outcomes? We exploit the timings and thresholds of a gender quota in boards of directors and supervisory boards to causally determine the impact of a change in leadership on performance. Using a novel design and data on boards, we find that firms...

Integrated demand management and vehicle routing problems are characterized by a stream of customer requests arriving dynamically over a booking horizon and requesting logistical services, which are fulfilled by a given fleet of vehicles during a service horizon. Prominent examples are attended...

We provide evidence of the existence of debt aversion and its negative implications for financial decisions. In a new experimental design where subjects are assigned debt randomly, we quantify the opportunity cost of subjects’ debt-biased decisions. One-third of our participants neglect high...

In the past two decades, increasing the influence of common shareholders has become a touchstone of good governance and shareholder democracy across the globe. Institutional activism combined with major regulatory overhauls has led shareholders to play a more active role in corporate...

Two of the founding pillars of corporate strategy research are Penrose’s (1959) development of the critical role of firm resources and their accumulation for the scope of the firm and Chandler’s (1962) examination of the relationship between a firm’s organizational structure and its scope...

Carbon pricing aims to capture the external costs of emissions and link them to their sources through a price signal, while market-based policy tools support investments in energy efficiency, rewarding investors following certified energy savings. The interplay between the emission trading...

In this paper we explore the application of the minimum total opportunity cost (MTOC) model of Fuller and Celebi (2017) to multicommodity market planning models containing binary variables and price sensitive demands, with or without substitution among commodities. We present a greatly...

In the United States, over 70% of milk production is priced under Federal Milk Marketing Orders (FMMOs). A primary purpose of FMMOs is to facilitate orderly allocation of milk as a limited, perishable resource among alternative uses. Fundamental to FMMOs are the regulatory prices applicable to...

Theories of CSR value under a real-option framework suggest that the payment of dividends serves as an opportunity cost. Two resulting predictions are that: 1) the payment of dividends restricts the ability to spend on CSR and 2) the value of CSR spending is lower for dividend paying firms. We...

This project explores side letters in private market funds. Side letters, separate agreements between a fund and an investor, act as an invisible amendment to the main contract. This article introduces a new use case for side letters: impact investments, where funds target social, as well as...

This paper revisits Peltzman (1973) in light of two recent opportunities to quantitatively assess tradeoffs in drug regulation. First, reduced regulatory barriers to drug manufacturing associated with the 2017 reauthorization of Generic Drug User Fee Amendments were followed by significantly...

Does the composition of governance affect firm outcomes? We exploit the timings and thresholds of a gender quota in boards of directors and supervisory boards to causally determine the impact of a change in leadership on performance. Using a novel design and data on boards, we find that firms...

This paper develops a general methodology for analyzing shadow wage (and other shadow prices). Our approach is to identify those reduced form relationships describing the economy which are central to the determination of the shadow wage, and use these to obtain simple formulae for the shadow...

We examine the association between unpaid caregiving by older Americans and time allocated to labor supply, home production, leisure, and personal care. After controlling for time-invariant heterogeneity using panel time diaries, we find that older caregivers reported reduced time allocated to...

The operative order in the case, titled Bangalore Club v. Commissioner of Wealth Tax & Anr., is welcome. But the pleasant reception cannot possibly extend to the ratio it is premised in. This perplexing opinion is based on the repeated attempts by income and wealth tax authorities to invade the...

Health plans paid by capitation have an incentive to distort the quality of services they offer to attract profitable and to deter unprofitable enrollees. We characterize plans' rationing as imposing a show that the profit maximizing shadow price depends on the dispersion in health costs, how...

The preponderance of minimal second language acquisition by immigrants worldwide is striking. This paper proposes a theoretical model, which analyzes the underlying forces that contribute to this outcome of minimal secondary language acquisition by immigrants in such diverse immigrant-receiving...