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Francisca AntmanFrancisca Antman
Ethnic Attrition and the Observed health of Later Generation Mexican Americans, (with Brian Duncan and Stephen J. Trejo), American Economic Review Papers and Proceedings, 106(5): 467-71, 2016.

Abstract
Numerous studies find that U.S.-born Hispanics differ significantly from non-Hispanic whites on important measures of human capital, including health. Nevertheless, almost all studies rely on subjective measures of identify immigrants U.S.-born descendants. this can lead to bias due to "ethnic attrition," which occurs whenever a U.S.-born descendant of a Hispanic immigrant fails to self-identify as Hispanic. In this paper, we show that Mexican American ethnic attritors are generally more likely to display health outcomes closer to those of non-Hispanic whites. This suggests that conventional estimates of Mexican American health are likely to be biased away from suggesting patterns of assimilation and convergence with non-Hispanic whites.


Oleg BaranovOleg Baranov
A Practical Guide to the combinatorial Clock Auction, (with Lawrence Ausubel), The Economic Journal, forthcoming. 

Abstract
The Combinatorial Clock Auction (CCA) is an important recent innovation in auction design that has been utilised for many spectrum auctions worldwide. While the theoretical foundations of the CCA are described in a growing literature, many of the practical implementation choices are omitted. In this paper, we review and discuss the most critical practical decisions for a regulator implementing the CCA. Topics include: implementation of reserve prices; accommodation of technological choice; activity rules; price incrementing policy; incorporation of competition policy objectives; and bidding language and pricing rule. We illustrate our discussion with examples from recent CCA spectrum auctions.


Oleg BaranovOleg Baranov
“Efficient Procurement Auctions with Increasing Returns,”
(with Lawrence Ausubel, Christina Aperjis and Thayer Morrill), American Economic Journal: Microeconomics, forthcoming

Abstract
For procuring from sellers with decreasing returns, there are known efficient dynamic auction formats. In this paper, we design an efficient dynamic procurement auction for the case where goods are homogeneous and bidders have increasing returns. Our motivating example is the procurement of vaccines, which often exhibit large fixed costs and small constant marginal costs. The auctioneer names a price and bidders report the interval of quantities that they are willing to sell at that price. The process repeats with successively lower prices, until the efficient outcome is discovered. We demonstrate an equilibrium that is efficient and generates VCG prices.


Martin BoileauMartin Boileau
Corporate Cash Holdings and Credit Line Usage, (with Nathalie Moyen), International Economic Review, 57(4): 1481–1506, November 2016. 



Abstract
We investigate the factors driving the unprecedented rise in corporate liquidities since the 1970s. We find that an economy wide reduction in the cost of holding liquidities and an increase in risk best explain the rise in cash holdings and the widespread use of credit lines. The structural estimation results shed light on two widely-acknowledged motives for holding cash. The precautionary motive and the liquidity motive translate risk exposure into cash holdings. Our results however do not suggest that firms have become more prudent over time. It is higher liquidity needs that has forced firms to hold more cash and use more credit lines.


Brian CadenaBrian Cadena
Immigrants Equilibrate Local Labor Markets: Evidence from the Great Recession
, (with Brian K. Kovak), American Economic Journal: Applied Economics ,8(1), pp. 257-290, January 2016.

Abstract
This paper demonstrates that low-skilled Mexican-born immigrants' location choices in the U.S. respond strongly to changes in local labor demand, and that this geographic elasticity helps equalize spatial di erences in labor market outcomes for low-skilled native workers, who are much less responsive. We leverage the substantial geographic variation in employment
losses that occurred during Great Recession, and our results con rm the standard nding that high-skilled populations are quite geographically responsive to employment opportunities while low-skilled populations are much less so. However, low-skilled immigrants, especially those from Mexico, respond even more strongly than high-skilled native-born workers. Moreover, we show that natives living in metro areas with a substantial Mexican-born population are insulated from the e ects of local labor demand shocks compared to those in places with few Mexicans. The reallocation of the Mexican-born workforce reduced the incidence of local demand shocks on low-skilled natives' employment outcomes by more than 50 percent.


Jeronimo CarballoJeronimo Carballo
"Roads, exports and employment: Evidence from a developing country,"
(with Christian Volpe Martincus and Ana Cusolito), Journal of Development Economics 125, March 2017.

Abstract
Domestic road programs are often justified on the basis of their presumed positive effects on firms' exports and accordingly on firms' employment. In this paper we evaluate this policy claim for Peru, a developing country whose regions were exposed to an asymmetric infrastructure shock. In so doing, we take advantage of detailed geo-referenced data on firm-level trade for the period 2003–2010 as well as on recent and historical road infrastructure. In particular, to identify the impacts of interest, we first exploit the dimensions of this dataset to account for regional-sectoral and even firm-level confounding factors through extensive sets of fixed effects. In addition, we conduct placebo exercises and carry out instrumental variable estimations whereby we instrument recent changes in the road network with the pre-Columbian Inca road network. Estimates concur in suggesting that improvements in transport infrastructure had a significant positive impact on firms' exports and thereby on firms' job growth.


Yongmin ChenYongmin Chen
Prices, Profits, and Preference Dependence
, (with Michael Riordan), Journal of Industrial Economics, 63(4): 549-568, December 2015.

Abstract
This paper develops a new approach to discrete choice demand for multiproduct industries, using copulas to separate the marginal distribution of consumer values for each product from their dependence relationship. The comparative statics of demand strength and preference diversity, both properties of the marginal distribution, are remarkably similar across market structures, revealing unifying principles of industry conduct and performance. Preference dependence, disentangled from preference diversity as a distinct indicator of product differentiation, is a key determinant of how prices differ between multiproduct industries and single-product monopoly. Sufficient conditions are found under which multiproduct monopoly or symmetric single-product oligopoly prices are above or below the single-product monopoly price.


Jonathan HughesJonathan Hughes
Some Inconvenient Truths About Climate Change Policy: The Distributional Impacts of Transportation Policies, (with Stephen Holland, Christopher Knittel and Nathan Parker), The Review of Economics and Statistics, 97(5), December 2015

Abstract
Instead of efficiently pricing greenhouse gases, policy makers have favored measures that implicitly or explicitly subsidize low carbon fuels. We simulate a transportation-sector cap & trade program (CAT) and three policies currently in use: ethanol subsidies, a renewable fuel standard (RFS), and a low carbon fuel standard (LCFS). Our simulations confirm that the alternatives to CAT are quite costly–2.5 to 4 times more expensive. We provide evidence that the persistence of these alternatives in spite of their higher costs lies in the political economy of carbon policy. The alternatives to CAT exhibit a feature that make them amenable to adoption–a right skewed distribution of gains and losses where many counties have small losses, but a smaller share of counties gain considerably–as much as $6,800 per capita, per year. We correlate our estimates of gains from CAT and the RFS with Congressional voting on the Waxman-Markey cap & trade bill, H.R. 2454. Because Waxman-Markey (WM) would weaken the RFS, House members likely viewed the two policies as competitors. Conditional on a district's CAT gains, increases in a district's RFS gains are associated with decreases in the likelihood of voting for WM. Furthermore, we show that campaign contributions are correlated with a district's gains under each policy and that these contributions are correlated with a Member's vote on WM.


Jonathan HughesJonathan Hughes
"When is Increasing Consumption of Common Property Optimal? Sorting, Congestion and Entry in the Commons,"
(with Daniel Kaffine), Journal of Environmental Economics and Management, forthcoming.

Abstract
First-best pricing or assignment of property rights for rival and non-excludable goods is often infeasible. In a setting where the social planner cannot limit total use, we show common-property resources can be over or under-consumed. This depends on whether the external benefits of reallocating users to less congested resources outweigh the additional costs imposed by new entrants. Importantly, we show it may be optimal to encourage consumption of some common property resources. Our results have important implications for settings ranging from fisheries and forestry to recreational demand and transportation.


Jonathan HughesJonathan Hughes
"Strategic Policy Choice in State-Level Regulation: The EPA's Clean Power Plan,"
(with James Bushnell, Stephen Holland and Christopher Knittel), American Economic Journal: Economic Policy, forthcoming.

Abstract
The EPA's Clean Power Plan sets state-level 2030 goals for CO2 emission rate reductions that vary substantially across states. States can choose the regulatory mechanism they use and whether or not to join with other states in implementing their goals. We analyze incentives to adopt rate standards versus cap-and-trade with theory and simulation. We show conditions where adoption of inefficient rate standards is a dominant strategy from both consumers' and generators' perspectives. Numerical simulations of the Western electricity system highlight incentives for uncoordinated policies that lower welfare and increase emissions relative to coordination.


Murat IyigunMurat Iyigun
Changing the Rules Midway: the Impact of Granting Alimony Right on Existing and Newly-Formed Partnerships, (with Pierre-Andre Chiappori, Jeanne Lafortune and Yoram Weiss), The Economic Journal, forthcoming.

Abstract
The  paper  analyzes  the  effect  of  a  reform  granting  alimony  rights  to  cohabiting  couples in Canada, exploiting the fact that each province extended these rights in different years and required different cohabitation length.  A theoretical analysis, based on a collective household model with a matching framework, predicts that changes in alimony laws would affect existing couples and couples-to-be differently.  For existing couples, legislative changes aimed at favoring (wo)men do benefit them, especially if the match quality is low.  However, for couples not yet formed, they generate offsetting intra-household transfers (in our model, of leisure) and lower intra-marital allocations for the spouses who are the intended beneficiary. Our empirical analysis confirms these predictions.  Among cohabiting couples united long enough before the reform, obtaining the right to petition for alimony led women to lower their labor force participation. These results, however, do not hold --and, in some cases,  are reversed -- for newly formed cohabiting couples.


Daniel KaffineDaniel Kaffine
"When is Increasing Consumption of Common Property Optimal? Sorting, Congestion and Entry in the Commons,"
(with Jonathan Hughes), Journal of Environmental Economics and Management, forthcoming.

Abstract
First-best pricing or assignment of property rights for rival and non-excludable goods is often infeasible. In a setting where the social planner cannot limit total use, we show common-property resources can be over or under-consumed. This depends on whether the external benefits of reallocating users to less congested resources outweigh the additional costs imposed by new entrants. Importantly, we show it may be optimal to encourage consumption of some common property resources. Our results have important implications for settings ranging from fisheries and forestry to recreational demand and transportation.


Jin-Hyuk KimJin-Hyuk Kim
“Non-performance Pay and Relational Contracting: Evidence from CEO Compensation,” (with Jed DeVaro and Nick Vikander), The Economic Journal, forthcoming.

Abstract
CEOs are routinely compensated for aspects of firm performance that are beyond their control. This is puzzling from an agency perspective, which assumes performance pay should be efficient. Working within an agency framework, we provide a rational for this seemingly inefficient feature of CEO compensation by invoking the idea of informal agreements, specifically the theory of relational contracting. We derive observable implications to distinguish relational from formal contracting, and using ExecuComp data, find that CEOs' annual cash and equity incentive payments positively correlate with the cyclical component of sales and respond to measures of persistence as relational contracting theory predicts.


Xiadong LiuXiadong Liu
Endogenous Network Production Functions with Selectivity, (with William Horace and Eleonora Patacchini), Journal of Econometrics,190, 222-232.

Abstract
We consider a production function model that transforms worker inputs into outputs through peer effect networks. The distinguishing features of this production model are that the network is formal and observable through worker scheduling, and selection into the network is done by a manager. We discuss identification and suggest a variety of estimation techniques. In particular, we tackle endogeneity issues arising from selection into groups and exposure to common group factors by employing a polychotomous Heckman-type selection correction. We illustrate our method using data from the Syracuse University Men's Basketball team, where at any point in time the coach selects a lineup and the players interact strategically to win games.



Scott J. SavageScott Savage
Market Structure and Broadband Internet Quality, (with G. Molnar), Journal of Industrial Economics, forthcoming.

Abstract
This paper investigates the effects of the number of firms and their product-type on broadband Internet quality. We estimate a model that relates the actual speeds delivered in census block groups to the number of wireline and wireless Internet service providers (ISPs), cost and demand conditions, and correction terms for the endogeneity of market structure. Model estimates show four main findings. Wireline speeds are often higher in markets with two or more wireline ISPs than with a single wireline ISP. Excluding the correction terms from the analysis understates this effect. Increases in wireline speeds are larger in the upstream direction, and there is no relationship between wireline speeds and the number of wireless ISPs.