- 13 May 2018
- Working Paper Summaries
Corporate Tax Cuts Increase Income Inequality
This paper examines corporate tax reform by estimating the causal effect of state corporate tax cuts on top income inequality. Results suggest that, while corporate tax cuts increase investment, the gains from this investment are concentrated on top earners, who may also exploit additional strategies to increase the share of total income that accrues to the top 1 percent.
- 29 Apr 2018
- Working Paper Summaries
Analyzing the Aftermath of a Compensation Reduction
This study of the effects of compensation cuts in a large sales organization provides a unique lens for analyzing the link between compensation schemes, worker performance, and turnover.
- 27 Apr 2018
- Working Paper Summaries
Is Overconfidence a Motivated Bias? Experimental Evidence
People are most at risk of making overly positive self-assessments when their assessment criteria are not clearly defined. Yet, even within ambiguous domains, providing clearly defined criteria for what makes a productive employee, an effective leader, and an efficient team, may help people better calibrate their self-perceptions with reality.
- 22 Apr 2018
- Working Paper Summaries
Immigrant Entrepreneurship in America: Evidence from the Survey of Business Owners 2007 & 2012
How do businesses created by immigrants differ from those of natives? This study using the 2007 and 2012 Survey of Business Owners records finds that while immigrant-owned businesses have a modestly different industry composition than native-owned businesses, there are ten-fold differences across states in terms of the share of businesses owned by immigrants.
- 20 Apr 2018
- Working Paper Summaries
Executive Education in the Digital Vortex: The Disruption of the Supply Landscape
The competitive landscape of executive education is feeling a tectonic shift even as demand grows for managerial skills. This study maps and analyzes the major providers of executive education programs, including business schools, consultancies, and corporate universities, to better understand and explain the industry’s present and future dynamics.
- 17 Apr 2018
- Working Paper Summaries
Digital Innovation with High Costs of Entry: Evidence from Software-Driven Medical Devices
Although technology shifts often allow new entrants to edge into a market, established firms seem to be maintaining leadership in the medical devices industry, where software integration is increasingly important.
- 31 Mar 2018
- Working Paper Summaries
Expected Stock Returns Worldwide: A Log-Linear Present-Value Approach
Over the last 20 years, shortcomings of classical asset-pricing models have motivated research in developing alternative methods for measuring ex ante expected stock returns. This study evaluates the main paradigms for deriving firm-level expected return proxies (ERPs) and proposes a new framework for estimating them.
- 29 Mar 2018
- Working Paper Summaries
Government Incentives and Financial Intermediaries: The Case of Chinese Sell-Side Analysts
This study is the first to examine analysts’ incentives vis-à-vis the government in a context where government has the ability and motives to influence capital market institutions. The paper highlights the role of government incentives in analysts’ behavior and output.
- 26 Mar 2018
- Working Paper Summaries
The Impact of CEOs in the Public Sector: Evidence from the English NHS
To what extent do CEOs impact their organizations? This study finds little consistent evidence of any CEO effect on the large set of production metrics examined in hospitals averaging 4,500 employees in the English National Health Service. This result stands in stark contrast with earlier findings of a CEO effect in the private sector and smaller public sector organizations.
- 23 Mar 2018
- Working Paper Summaries
Experience Markets: An Application to Outsourcing and Hiring
Online labor platforms are like experience markets. Sellers vary in their fit with individual buyers’ needs while buyers new to the market are uncertain about their own value for what sellers offer. This analysis shows that most potential new employers find the market far less valuable to them than wage differences would suggest.
- 20 Mar 2018
- Working Paper Summaries
Countering Political Risk in Colonial India: German Multinationals and the Challenge of Internment (1914–1947)
Internment during wartime is a frequent occurrence, but little has been written about internment as a political risk for multinational enterprises. Examining German businesspeople interned in British camps in India during both World War I and II, this study identifies major issues and questions for future scholarly research on internment.
- 19 Mar 2018
- Working Paper Summaries
Lone Wolves in Competitive Equilibria
The Lone Wolf Theorem states that any agent who is unmatched in one stable partnership assignment is unmatched in every stable assignment. This new study in matching theory broadens the Lone Wolf Theorem to exchange economies, with implications for the strategy-proof negotiation of job contracts.
- 18 Mar 2018
- Working Paper Summaries
Thanks for Nothing: Expressing Gratitude Invites Exploitation by Competitors
Think more carefully and strategically about expressing gratitude while negotiations are still underway. Even if negotiators feel grateful for concessions from a counterpart, it may not help them, and it might even hurt them, to express it then and there. Wait until the deal is done before saying thanks.
- 16 Mar 2018
- Working Paper Summaries
Amount and Diversity of Digital Emotional Expression Predicts Happiness
Emoticons might seem trivial because they require just the tap of a finger, but this study shows how emoticons make a difference in overall emotion expression. People use emoticons to highlight the emotions they intend to convey, and emoticons also serve as predictors—and causes—of happiness and well-being.
- 15 Mar 2018
- Working Paper Summaries
Backhanded Compliments: How Negative Comparisons Undermine Flattery
Backhanded compliments seem like praise but can leave a sting. This study explores the psychology of backhanded compliments. Flatterers deploy backhanded compliments to garner liking while conveying social status. Recipients view praise of this kind as strategic put-downs and penalize would-be flatterers even as the backhanded compliment undermines their motivation and perseverance.
- 15 Mar 2018
- Working Paper Summaries
Targeted Price Controls on Supermarket Products
Governments sometimes consider targeted price controls when popular goods become less affordable. Looking at price controls in Argentina between 2007 and 2015, this study’s findings suggest that new technologies like mobile phones are allowing governments to better enforce targeted price control programs, but the impact of these policies on aggregate inflation is small and short-lived.
- 12 Mar 2018
- Working Paper Summaries
Using Online Prices for Measuring Real Consumption Across Countries
The increasing availability of big data can improve measurement of real consumption in closer to real time. This study shows that online prices may enhance data of the International Comparisons Program, dramatically improving the frequency and transparency of purchasing power parities compared with traditional data collection methods.
- 05 Mar 2018
- Working Paper Summaries
Nowcasting Gentrification: Using Yelp Data to Quantify Neighborhood Change
This study finds that data from digital platforms (in this case, Yelp) can help forecast which neighborhoods are gentrifying and provide new ways to measure business landscape changes that accompany demographic changes.
- 02 Mar 2018
- Working Paper Summaries
Evidence of Decreasing Internet Entropy: The Lack of Redundancy in DNS Resolution by Major Websites and Services
Stabilizing the domain name resolution (DNS) infrastructure is critical to the operation of the internet. Single points of failure become more consequential as a larger proportion of the internet's biggest sites are managed by a small number of externally hosted DNS providers. Providers could encourage diversification by requiring domain owners to select a secondary DNS provider.
Business, Governments and Political Risk in South Asia and Latin America since 1970
This study shows how perceptions of political risk by business leaders in emerging markets has differed between regions. For Latin Americans, macroeconomic and policy turbulence were the biggest sources of risk. For South Asians, excessive bureaucracy was the biggest source of risk. The study is based on a unique Harvard Business School oral history database.