- 18 Sep 2018
- Working Paper Summaries
After the Carnival: Key Factors to Enhance Olympic Legacy and Prevent Olympic Sites from Becoming White Elephants
After the Games end, Olympic venues must be used effectively and earn enough revenue to cover large ongoing costs or their owners—local governments and taxpayers—will face deficits. This fieldwork-based research and analysis of stadium use at 10 of the last 12 Summer Olympics sites highlights eight factors for better sustainability.
- 17 Sep 2018
- Working Paper Summaries
The Impact of Penalties for Wrong Answers on the Gender Gap in Test Scores
Multiple-choice questions on standardized tests are widely seen as objective measures of student ability, but the common practice of assessing penalties for wrong answers may generate gender bias. This study documents the impact of a policy change that removed penalties for wrong answers on the national college entry exam in Chile. This simple change reduced the gender gap in test performance by 9 percent.
- 11 Sep 2018
- Working Paper Summaries
IQ from IP: Simplifying Search in Portfolio Choice
Mutual fund managers solve their complex “search problem” for superior investable returns by tracking—and trading—on very particular sets of firms and insiders. These sets are chosen strategically and remain very persistent over time, as does the outperformance these insiders’ trades afford to the given fund managers.
- 04 Sep 2018
- Working Paper Summaries
Investing Outside the Box: Evidence from Alternative Vehicles in Private Capital
Private equity vehicles that differ from the traditional structure have become a major portion of investors’ portfolios, especially over the past decade. This study identifies differences in performance across limited and general partners participating in such vehicles, as well as across the two broad classes of alternative vehicles.
- 04 Sep 2018
- Working Paper Summaries
Some Facts of High-Tech Patenting
This study details the growth of patenting in software, cloud computing, artificial intelligence, and related technologies in the twenty-first century, and the continuing dominance of inventors in large US, Japanese, and Korean companies. Researchers still need to understand the impact of such trends on social welfare more generally.
- 29 Aug 2018
- Working Paper Summaries
How Much Does Your Boss Make? The Effects of Salary Comparisons
This study of more than 2,000 employees at a multibillion dollar firm explores how perceptions about peers’ and managers’ salaries affect employee behaviors and preferences for equity. Employees exhibit a high tolerance for inequality when job titles differ, which may explain why incentives are granted through promotions, and gender pay differences are most pronounced across positions.
- 28 Aug 2018
- Working Paper Summaries
Homesick or Home Run? Distance from Hometown and Employee Performance: A Natural Experiment from India
In the short and long term, distance from one’s hometown has a different effect on individual work performance. First-year performance ratings tend to be high the farther employees work from their hometown. Three years later, however, longer travel times are associated with lower ratings, with implications for managers.
- 22 Aug 2018
- Working Paper Summaries
Sustainability and Green Business in Latin America During Globalization Waves
Capitalism has created much wealth, but at the cost of massive ecological destruction. This has been particularly severe in Latin America over the past century. Yet the last three decades have also seen a wave of businesses across sectors ranging from beauty to eco-tourism aimed at greater sustainability.
- 07 Aug 2018
- Working Paper Summaries
Gifts of the Immigrants, Woes of the Natives: Lessons from the Age of Mass Migration
Investigating the economic and political effects of immigration across US cities between 1910 and 1930, this paper finds that political opposition to immigration can arise even when immigrants bring widespread economic benefits. The paper provides evidence that cultural differences between immigrants and natives were responsible, at least in part, for natives’ anti-immigration reactions.
- 07 Aug 2018
- Working Paper Summaries
Economic Integration and Democracy: An Empirical Investigation
Economic integration reduces or eliminates trade barriers and coordinates monetary and fiscal policies. This study suggests that demand for democracy increases with economic integration due to the presence of a learning and cultural transmission channel, so less democratic countries learn from the institutions of their (more) democratic partners.
- 31 Jul 2018
- Working Paper Summaries
How Does Product Liability Risk Affect Innovation? Evidence from Medical Implants
This analysis examines how a surge in liability risk faced by upstream suppliers of general purpose technologies (polymers) affected downstream innovation in implant technologies. Implant patenting dropped by 36 percent relative to non-implant technologies.
- 23 Jul 2018
- Working Paper Summaries
The Creative Consulting Company
Management theories cannot be tested in laboratories; they must be applied, tested, and extended in real organizations. For this reason the most creative consulting companies balance conflicting demands between short‐term business development and long‐term knowledge creation.
- 16 Jul 2018
- Working Paper Summaries
The Impact of Increasing Search Frictions on Online Shopping Behavior: Evidence from a Field Experiment
With even minor changes to the design of an online store, sellers may get more full-priced sales from price-insensitive shoppers. As shoppers spend more time on the website given higher search frictions, they may also be considering a larger set of products.
- 11 Jul 2018
- Working Paper Summaries
Channeled Attention and Stable Errors
As humans we are surprisingly good at neglecting unexpected information that conflicts with what we “know” to be true. This paper develops a framework for predicting when we are more likely to “get a clue” despite this cognitive barrier to discovering our own mistakes.
- 05 Jul 2018
- Working Paper Summaries
Buying the Verdict
This paper documents systematic evidence that firms engage in specialized, locally targeted advertising when taken to a court trial in a given location. Policymakers should consider what impact such targeted advertising is having—and whether it is a desired impact—on juries and the judicial process more generally.
- 27 Jun 2018
- Working Paper Summaries
Negotiating a Better Future: How Interpersonal Skills Facilitate Inter-Generational Investment
For many girls in developing countries, early adolescence is a time of key challenges: school dropout rates rise, and social and economic pressures increase for marriage and motherhood. This randomized control trial involving Zambian adolescent girls finds that negotiation skills can help them navigate these challenges. Girls taught negotiation skills had significantly better educational outcomes over the next three years.
- 26 Jun 2018
- Working Paper Summaries
The Impact of Pensions and Insurance on Global Yield Curves
The global financial crisis and its aftermath had a dramatic impact on the solvency of pension funds and insurance companies. Drawing on a large cross-section of countries, this paper shows the importance of pension and insurance companies in determining the yields on long maturity bonds around the world.
- 20 Jun 2018
- Working Paper Summaries
Show or Tell? Improving Agent Decision Making in a Tanzanian Mobile Money Field Experiment
Mobile money is popular in developing economies but many agents do not maintain proper inventory levels. This paper, based on a study of 4,771 agents in Tanzania, shows how training and ongoing guidance improve their inventory management. Agents who get in-person training and explicit inventory recommendations tend to stock out less.
- 18 Jun 2018
- Working Paper Summaries
A Measure of Risk Appetite for the Macroeconomy
This paper sheds new light on connections between financial markets and the macroeconomy. It shows that investors’ appetite for risk—revealed by common movements in the pricing of volatile securities—helps determine economic outcomes and real interest rates.
From Immigrants to Americans: Race and Assimilation During the Great Migration
The Great Migration of African Americans and the mass migration of Europeans both contributed to forming the modern American racial and ethnic landscape. This analysis finds that native whites more readily accepted European immigrants as African Americans arrived in the US North during the first Great Migration, facilitating the assimilation of European immigrants in northern urban centers.