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The Quiet Hand of Regulation: Harnessing Uncertainty and Disagreement

Lorenzo Garlappi , Daniel Andrei   May 12,2025

Working Paper No.00152-00

Regulating externalities is particularly challenging in the presence of uncertainty and disagreement among economic agents. Traditional Pigouvian and Coasean approaches... Read More

A Theory of Socially Responsible Investment

Marcus Opp , Martin Oehmke   Mar 27,2023

Working Paper No.00093-00

We characterize the conditions under which a socially responsible (SR) fund induces firms to reduce externalities, even when profit-seeking capital... Read More

Optimal contracts with privately informed agents and active principals

Diego Garcia   Aug 02,2023

Working Paper No.00119-00

This paper considers an optimal contracting problem between an informed risk-averse agent and a principal, when the agent needs to... Read More

The Short-Termism Trap: Catering to Informed Investors with Limited Horizons

James Dow , Jungsuk Han Francesco Sangiorgi   Dec 15,2023

Working Paper No.00132-00

Does the stock market exert short-term pressure on listed firms, do they respond, and is this response value reducing? We... Read More

Published: Journal of Financial Economics, 2024, (), -

A Theory of Liquidity Spillover Between Bond and CDS Markets

Batchimeg Sambalaibat   Jul 07,2021

Working Paper No.00072-00

I build a search model of bond and credit default swap (CDS) markets with endogenous investor participation and show that... Read More

Leverage Dynamics without Commitment

Peter DeMarzo , Zhiguo He   Nov 24,2020

Working Paper No.00069-00

We characterize equilibrium leverage dynamics in a tradeoff model when the firm can continuously adjust leverage and cannot commit to... Read More

Competition for Talent under Performance Manipulation

Ivan Marinovic , Paul Povel   Jul 08,2018

Working Paper No.00041-00

We study the effects of introducing competition for CEOs, assuming that the talent of CEOs is not observable and... Read More

Published: Journal of Accounting and Economics, 2017, 64(1), 1-14