Working Knowledge
Business Research for Business Leaders
COVID-19 Business Impact Center
Filter Results: (1,308) Arrow Down

Working Paper SummariesRemove Working Paper Summaries →

Page 1 of 1,308 Results →

How Should US Bank Regulators Respond to the COVID-19 Crisis?

by Michael Blank, Samuel G. Hanson, Jeremy C. Stein, and Adi Sunderam

Instead of the "watchful waiting" approach taken by US bank regulators to the pandemic crisis, they should use their prudential authorities to encourage banks to increase their equity capital. This is effectively a way of buying low-cost insurance against adverse scenarios that have become more likely.

Inventing the Endless Frontier: The Effects of the World War II Research Effort on Post-War Innovation

by Daniel P. Gross and Bhaven N. Sampat

Investments made in World War II by the United States Office of Scientific Research and Development powered decades of subsequent innovation and the take-off of regional technology hubs around the country.

COVID-19 and the Workplace: Implications, Issues, and Insights for Future Research and Action

by Ashley Whillans and 28 coauthors

Assembling a large, diverse team of researchers to make sense of COVID-19’s impact on issues of work and organizational psychology, this project explores changes that are unfolding for practitioners and human resources professionals.

Predictable Financial Crises

by Robin Greenwood, Samuel G. Hanson, Andrei Shleifer, and Jakob Ahm Sørensen

One central issue in the study of macroeconomic stability is financial crisis predictability. This paper estimates the probability of financial crises as a function of past credit and asset price growth.

Inflation with COVID Consumption Baskets

by Alberto Cavallo

Examining the impact that changes in expenditure patterns are having on the measurement of consumer price indices (CPI) inflation in 17 countries, this study finds that the cost of living for the average consumer is higher than estimated by the official CPI. This implies that real consumption is falling more quickly over time.

Social Interactions in Pandemics: Fear, Altruism, and Reciprocity

by Laura Alfaro, Ester Faia, Nora Lamersdorf, and Farzad Saidi

An analysis of 89 cities worldwide shows that mobility responds to infection risk, altruism, and reciprocity. Correcting the SIR model to account for this behavior shows that a balanced approach involving stringency measures, in respect of human dignity, and responsible social preferences mitigates the pandemic health and economic costs.

Scaling Up Behavioral Science Interventions in Online Education

by Rene F. Kizilcec, Justin Reich, Michael Yeomans, Christoph Dann, Emma Brunskill, Glenn Lopez, Selen Turkay, Joseph J. Williams, and Dustin Tingley

Online courses can lack support structures that are often bundled with traditional higher education. Short pre-course interventions can have short-term benefits, but more innovation throughout the course is needed to have sustained impact on student success.

Measuring the Perceived Liquidity of the Corporate Bond Market

by Sergey Chernenko and Adi Sunderam

The liquidity of corporate bond markets is crucial to their functioning. This paper proposes a novel measure of bond market liquidity based on portfolio holdings instead of transaction data. The measure can be applied to asset-backed securities, syndicated loans, and municipal securities for which publicly available data on transactions are not available.

Weak Credit Covenants

by Victoria Ivashina and Boris Vallée

Prior to the 2020 pandemic, the leveraged loan market experienced an unprecedented boom, which came hand in hand with significant changes in contracting terms. This study presents large-sample evidence of what constitutes contractual weakness from the creditors’ perspective.

Dignity, Inequality, and the Populist Backlash: Lessons from America and Europe for a Sustainable Globalization

by Rawi Abdelal

COVID-19 has enhanced already existing fissures undermining some societies’ commitments to globalization. Governments and firms need to act decisively to make the models of capitalism in the United States and Europe more friendly to small- and medium-sized firms, more equal in opportunity, and more meritocratic.

Iterative Coordination and Innovation

by Sourobh Ghosh and Andy Wu

Do Agile methodologies promote innovation? Results of a field experiment with Google show that increasing the frequency and goal orientation of stand-up meetings reinforces integration and value but reduces specialization and novelty in outcomes.

The Rise of the Investor State: State Capital in the Chinese Economy

by Hao Chen and Meg Rithmire

Researchers document and explain the rise of a novel form of intervention on the part of the Chinese state: the expansion of state capital beyond ownership of state firms.

Government Incentives for Entrepreneurship

by Josh Lerner

Even though many public policy efforts on entrepreneurship are well intentioned, the success rate has been disappointing. This essay explores these policies, focusing on financial incentives to entrepreneurs and the intermediaries who fund them.

The Seeds of Ideology: Historical Immigration and Political Preferences in the United States

by Paola Giuliano and Marco Tabellini

Researchers test the relationship between historical immigration to the United States and political ideology today.

Corporate Resilience and Response During COVID-19

by Alex Cheema-Fox, Bridget LaPerla, George Serafeim, and Hui (Stacie) Wang

Investors look for evidence during a market crisis that a company is resilient. This study includes findings that challenge the notion that companies need to adopt practices that hurt their employees because investors want them to do so.

Paying It Backward and Forward: Expanding Access to Convalescent Plasma Therapy Through Market Design

by Scott Duke Kominers, Parag A. Pathak, Tayfun Sönmez, and M. Utku Ünver

Without a vaccine for COVID-19, the medical community has turned to a century-old therapy. This paper discusses a market design approach for expanding the collection and distribution of convalescent plasma.

Aggregate and Firm-Level Stock Returns During Pandemics, in Real Time

by Laura Alfaro, Anusha Chari, Andrew Greenland, and Peter K. Schott

This paper explains the seemingly conflicting narratives from the stock and labor market about the underlying state of the economy. We show that day-to-day changes in the predictions of standard models of infectious disease forecast changes in aggregate stock returns in pandemics.

Food Security and Human Mobility During the Covid-19 Lockdown

by Prithwiraj Choudhury, Wesley W. Koo, Xina Li, Nishant Kishore, Satchit Balsari, and Tarun Khanna

COVID-19 represents not only a health crisis but a crisis of food insecurity and starvation for migrants. Central governments should ensure that food security policies are implemented effectively and engage with local governments and local stakeholders to distribute food to migrants in the immediate term.

Loan Types and the Bank Lending Channel

by Victoria Ivashina, Luc Laeven, and Enrique Moral-Benito

Practitioners commonly refer to four distinct loan types: asset-based loans, cash flow loans, trade financing, and leasing. It is important to account for these differences in loan type in order to analyze the economic significance of credit market disruptions.

Financial Distancing: How Venture Capital Follows the Economy Down and Curtails Innovation

by Sabrina T. Howell, Josh Lerner, Ramana Nanda, and Richard Townsend

Common wisdom holds that VC investment and VC-backed startups are relatively insulated from downturns. This study shows that the relative quantity and quality of innovation declines more for VC-backed firms than for other types of firms during downturns.