cssi/SciSciGPT-SciSciNet huggingface dataset:
Does Investor Identity Matter in Equity Issues? Evidence from Private Placements

We examine the relation between stock price performance and the identity of the investors buying the shares in private placements of equity. We find that although the shareholders not participating in the placement experience post-issue negative long-term abnormal returns, the participating investors purchase the shares at a discount and earn normal returns. For the non-participating investors, both announcement and long-term abnormal returns are significantly higher when the shares are placed with affiliated than only with unaffiliated investors. Additionally, when we exclude financially-distressed firms, we find insignificant announcement returns followed by negative longterm abnormal returns in placements to unaffiliated investors. On the other hand, consistent with affiliated investors having a certification effect, we find positive announcement returns and normal long-term returns following placements to affiliated investors. Thus, the disparity found in private placements between the positive announcement period and the negative post-issue long-term abnormal returns disappears when we control for financial distress and participating investor identity.
Institutional Design and the Policing of Prosecutors: Lessons from Administrative Law

Federal prosecutors wield enormous power. They have the authority to make charging decisions, enter cooperation agreements, accept pleas, and often dictate sentences or sentencing ranges. There are currently no effective legal checks in place to police the manner in which prosecutors exercise their authority. As a result, in the current era dominated by pleas instead of trials, federal prosecutors are not merely law enforcers. They are the final adjudicators in the 95% of cases that are not tried before a federal judge or jury. In a government whose hallmark is supposed to be the separation of powers, federal prosecutors are a glaring and dangerous exception. They have the authority to take away liberty and even life, yet they are often the final judges in their own cases. One need not be an expert in separation of powers theory to know that combining these powers in a single actor can lead to gross abuses. Indeed, the combination of law enforcement and adjudicative power in a single prosecutor is the most significant design flaw in the federal criminal system. Although scholars have made persuasive cases for greater external controls on prosecutors, these calls for reform are unrealistic in the current political climate. The solution must be sought elsewhere. This Article looks within the prosecutor's office itself to identify a viable corrective on prosecutorial overreaching. In particular, by heeding lessons of institutional design from administrative law, this Article considers how federal prosecutors' offices could be designed to curb abuses of power through separation of functions requirements and greater attention to supervision. The problems posed by federal prosecutors' combination of adjudicative and enforcement functions are the very same issues raised by the administrative state - and the solutions fit equally well in both settings. In both instances, individuals who make investigative decisions should be separated from those who make adjudicative decisions, the latter of which should be defined to include some of the most important prosecutorial decisions today, including charging, the acceptance of pleas, and the decision whether or not to file substantial assistance motions. Using this model from administrative law would not only be effective, it would also be more politically viable than the leading alternative proposals for curbing prosecutorial discretion.
A Primer on AIDS-based Models in Antitrust Analysis

The purpose of this paper is to provide an introduction to AIDS-based demand systems (i.e., those based on Deaton and Muellbauer's Almost Ideal Demand System). We discuss derivation of the AIDS model from its microeconomic foundations, clearly state the assumptions underlying AIDS, and provide a primer on how to implement the model in practice. We use a high level of detail to show every step of the AIDS process. We detail the algebra because the original articles by either Deaton and Muellbauer (in 1980) or Hausman et al. (in various papers over several years) skip most of the steps. We discuss using the AIDS model by itself and in two variations of Hausman et al.’s multilevel systems. We briefly discuss some pitfalls common to all demand systems. Finally, at the end of this document, we provide an example of how the elasticities may be used to predict post-merger price changes via a linear approximation to the Bertrand model.
The Sympathetic Formation of Reason and the Limits of Science

I develop an interpretation of reason using the thought of David Hume and Adam Smith. I contend that reason in Hume and Smith can plausibly be interpreted as a kind of sensation. Reason is a sensation in that it is a sentimental conception of the relationship between two objects that impels certain interpretations. Reason is developed sympathetically in experiential contexts that not only guide but constitute reason’s operation. I comment on Hume’s talk of reason in his Treatise of Human Nature to build my interpretation. I use Smith’s work in The Theory of Moral Sentiments to develop an understanding of the sympathetic formation of reason. I briefly integrate my interpretation with talk of confirmatory bias in psychology and behavioral economics. I conclude by considering implications for scientific conversation.
Stock Redemptions: The Standards for Qualifying as a Purchase under Section 302(b)

In an attempt to withdraw funds from a closely held corporation without incurring dividend treatment, the controlling shareholders could cause the corporation to redeem some shares of their stock. Each shareholder would then seek to report as gain only the difference between the amount he received from the corporation and his basis in the shares surrendered. Because there is no substantive difference between a redemption made pro rata among the shareholders and a section 301 distribution, the tax consequences should be the same. What if the distributions in redemption are somewhat disproportionate? How disproportionate must they be to qualify as a purchase? This article discusses the requirements of section 302(b) for characterizing a stock redemption as a purchase rather than as a dividend equivalent. Particular attention is paid to the determination of the standards to be applied in resolving whether a redemption is "not essentially equivalent to a dividend" so that section 302(b)(1) is applicable.
The Influence of Ownership on Accounting Information Expenditures

This paper analyzes the association between ownership, top management incentives, and expenditures on accounting information. We argue that organizations with privately appointed boards of directors such as for-profit and non-governmental nonprofit organizations use incentive pay practices which encourage managers to use accounting information to improve performance. In contrast, government organizations are publicly governed and are constrained in their compensation practices because hospital CEOs are administrators of government provided services. However, these hospitals must prove their efficiency to continue to receive adequate budgetary funding. Therefore government hospitals are more likely to use accounting information to gain legitimacy with stakeholders and regulators. Accordingly, we predict a positive relationship between expenditures on accounting information and contracting intensity in privately governed organizations, whereas we expect no such association for publicly governed organizations. We analyze data from California hospitals to determine differences in these roles across ownership types. We find a positive association between contracting intensity and expenditures on accounting information in privately governed hospitals, but no relation in publicly governed hospitals. Finally, we find differences in the use of accounting information within the privately governed hospitals, based on ownership. While for-profit hospitals expend resources on accounting information that helps improve their revenue positions, nonprofit hospitals expend resources on accounting information that facilitates decision-making related to operating efficiency and cost containment.
Infinite-horizon models for inventory control under yield uncertainty and disruptions

Abstract We consider a firm facing supply chain risk in two forms: disruptions and yield uncertainty. We demonstrate the importance of analyzing a sufficiently long time horizon when modeling inventory systems subject to supply disruptions. Several previous papers have used single-period newsboy-style models to study supply disruptions, and we show that such models underestimate the risk of supply disruptions and generate sub-optimal solutions. We consider one case where a firm's only sourcing option is an unreliable supplier subject to disruptions and yield uncertainty, and a second case where a second, reliable (but more expensive) supplier is available. We develop models for both cases to determine the optimal order and reserve quantities. We then compare these results to those found when a single-period approximation is used. We demonstrate that a single-period approximation causes increases in cost, under-utilizes the unreliable supplier, and distorts the order quantities that should be placed with the reliable supplier in the two-supplier case. Moreover, using a single-period model can lead to selecting the wrong strategy for mitigating supply risk.
Contingent Capital with a Dual Price Trigger

This paper proposes a form of contingent capital for nancial institutions that converts from debt to equity if two conditions are met: the rm’s stock price is at or below a trigger value and the value of a nancial institutions index is also at or below a trigger value. This structure protects nancial rms during a crisis, when all are performing badly, but during normal times permits a bank performing badly to go bankrupt. I discuss a number of issues associated with the design of a contingent capital claim, including susceptibility to manipulation and whether conversion should be for a xed dollar amount of shares or a xed number of shares; the susceptibility of dierent contingent capital schemes to dierent kinds of errors (under and over-capitalization); and the losses likely to be incurred by shareholders upon the imposition of a requirement for contingent capital. I also present some illustrative pricing examples.
Self-Interest, Altruism, Incentives, and Agency Theory

Many people are suspicious of self-interest and incentives and oppose motivating humans through incentives. I analyze the meaning of incentives in the logic of choice and argue that it is inconceivable that purposeful actions are anything other than responses to incentives. Money is not always the best way to motivate people. But where money incentives are required, they are required precisely because people are motivated by things other than money. Self-interest is consistent with altruistic motives. Agency problems, however, cannot be solved by instilling greater altruism in people because altruism, the concern for the wellbeing of others, does not make a person into a perfect agent who does the bidding of others. I discuss the universal tendency of people to behave in non-rational ways. Though they are Resourceful, Evaluative Maximizers (REMMs) humans are imperfect because their brains are biologically structured so as to blind them from perceiving and correcting errors that cause psychic pain. The result is systematic, non-functional behavior. I discuss a Pain Avoidance Model (PAM) that complements REMM by capturing the non-rational component of human behavior (the crux of human self-control problems). Recognizing these self-control problems leads to an expansion of agency theory since they are a second source of agency costs in addition to those generated by conflicts of interest between people.
Is There an Attendance Effect? Examining the Causal Link Between Religious Attendance and Political Participation:

Does the act of attending religious services “cause” individuals to participate in politics? There is no known literature that examines this question using longitudinal, individual-level data. Therefore, using the Youth Parent Socialization Panel Study, this analysis examines three theoretical possibilities: the indirect, direct, and null relationships. The results show that changes in religious attendance are primarily indirectly linked to political participation through civic activity, a factor highly correlated with political participation. There is also some limited evidence for a direct effect. As individuals increase their political participation over time, they are slightly more likely to participate in political activities and vote. But, the findings also imply that the previous literature has likely overstated the role of religious attendance in generating political participation. Once individuals start participating politically, they continue to do so regardless of changes in their attendance at...
Improving India’s Saving Performance

This paper discusses recent trends in Indian saving behavior and reviews policy options to increase domestic saving. In the absence of forceful policy measures, private saving would continue to rise gradually, but probably not by enough to finance the government’s growth target of 7 percent over the next decade. The most promising way to boost domestic saving would be through increased public saving and a strong structural reform program, including financial liberalization, which would initiate a virtuous growth-saving circle. To increase the efficiency of the savings allocation, particular attention should be paid to long-term saving instruments.
The Language of Consent in Police Encounters

In this chapter, we examine the nature of conversations in citizen-police encounters in which police seek to conduct a search based on the citizen’s consent. We argue that when police officers ask a person if they can search, citizens often feel enormous pressure to say yes. But judges routinely ignore these pressures, choosing instead to spotlight the politeness and restraint of the officers’ language and demeanor. Courts often analyze the language of police encounters as if the conversation has an obvious, context-free meaning. The pragmatic features of language influence behavior, but courts routinely ignore or deny this fact. Instead, current Fourth Amendment jurisprudence assumes that the authority of armed police officers simply vanishes when they pose their desire to search as a question. We discuss empirical evidence suggesting that people are afraid to decline police officer requests to search, and conclude by discussing the social and psychological cost of the widespread use of consent searches.
Law Student Plagiarism: Why It Happens, Where It's Found, and How to Find It

The author explores why law students plagiarize and how to detect it using both personal and technological methods.
Reconstructing Self-Determination: The Role of Critical Theory in the Positivist International Law Paradigm

This article (or conference transcription) discuses the role that critical race theory may have on what, will be called, self-determination movements. It commences with the introduction of four speakers Taygab Muhmud, Seigfried Weissner, Julie Mertus and Donna Coker, discussing various forms of self-determination movements of indigenous people, the neocolonial plight of the people of South Asia and a comparative analysis of Eastern Europeans. The article then undertakes an innovative critical analysis of the acceptance of the liberal international law doctrine of self-determination. In particular, it will critique the purportedly universal norm of self-determination in order to expose and explain its inherent subjectivity and the incoherence that results from its arbitrary nature. It undertakes this task by assessing the positive legal paradigm that exists for addressing international law. In theory, self-determination is intended to bestow upon all peoples the right to determine their future. At this point, practice intersects with theory, and the problem arises because of the inherent shortcomings of a positivist formulation. The positivist does nothing more than state what the law is, rather than state what it should be. With this as the dominant paradigm, it is often impossible to discern whether a law is effective because the formulation is merely descriptive. This article argues that the traditional positivist paradigm is nothing more than formalistic social construction that has been designed by international scholars. Because, historically, these international scholars have not questioned what the law should be, their failure to question the underpinnings and normative values of their doctrinal formulations renders their laws to be limited, incoherent, anachronistic, and apologistic attempts to be objective in spite of historical occurrences. In addition to pointing out the flaws of the paradigm, the Article engages in a deconstruction of the right of self-determination and concludes with a brief reconstruction of this right.
THE MORAL SIGNIFICANCE OF RISKING

What makes careless conduct careless is easily one of the deepest and most contested questions in negligence law, tort theory, and moral theory. Answering it involves determining the conditions that make the imposition of risk unjustifiable, wrong, or impermissible. Yet there is a still deeper as well as overlooked and undertheorized question: Why does subjecting others to risk of harm call for justification in the first place? That risk can be impermissibly imposed upon others — that is, the very possibility of negligence — presupposes that imposing risk is the kind of thing that can be impermissible. Unless imposing risk can be impermissible after all, unjustified risking is literally impossible. In this discussion, I explore what I call the moral significance of risking, arguing that the moral significance of risking resides in a certain kind of nonmaterial autonomy interest that is implicated whenever one imposes risk of harm on another.
Robbing the Rich to Feed the Poor

Because crime victims are not monolithic, programs established to serve one set of victims can sometimes injure another. The somewhat provocative title of this essay refers to the possibility that one program designed to benefit victims, the Crime Victims’ Fund administered by United States Department of Justice Office for Victims’ of Crime, may cause victims of federal crimes to go without full compensation for the harm they’ve suffered, while assets seized from their offenders are channeled to a different group of people altogether: victims of state crimes such as rape, domestic abuse, and child sexual abuse. Since 1985, over 2 billion dollars in fines, asset forfeitures, and other special assessments—generated mostly by white collar, corporate crime—have been deposited into the Crime Victims’ Fund. This money in turn supports federal courts as well as programs to compensate and assist victims of state law crimes, principally rape, domestic abuse, child abuse and child sexual abuse. The recipients of these benefits—many in underserved rural areas and inner-city neighborhoods—could not be more deserving. The Crime Victims’ Fund is a brilliant
Stakeholder governance, competition, and firm value

In many countries, the legal system or social norms ensure that firms are stakeholder oriented. We analyze the advantages and disadvantages of stakeholder-oriented firms that are concerned with employees and suppliers compared to shareholder-oriented firms in a model of imperfect competition. Stakeholder firms are more (less) valuable than shareholder firms when marginal cost uncertainty is greater (less) than demand uncertainty. With globalization shareholder firms and stakeholder firms often compete. We identify the circumstances where stakeholder firms are more valuable than shareholder firms and compare these mixed equilibria with the pure equilibria with stakeholder and shareholder firms only. Finally, we analyze firm financial constraints and derive implications for the capital structure of stakeholder firms.
Cultural Dimension Interests, the Dance of Negotiation, and Weather Forecasting: A Perspective on Cross-Cultural Negotiation and Dispute Resolution

This article argues that effective cross-cultural negotiations and dispute resolution requires an understanding of Cultural Dimension Interests (CDIs). The article reviews many of the cultural interests that impact negotiation and dispute resolution by: 1) specifically reviewing the cultural theories of Edward T. Hall, Geert Hofstede, Fons Trompenaars and Charles M. Hampden-Turner, and Richard D. Lewis, 2) considering country specific anecdotal accounts of national negotiating behaviors, and 3) reviewing some specific beliefs, behaviors, and practices that impact national negotiation styles and approaches. The 36 Chinese strategies are reviewed and applied to negotiations. This article focuses mainly on cross-cultural differences between American and Asian negotiation styles and behaviors.
Earthquake arrival association with backprojection and graph theory

The association of seismic wave arrivals with causative earthquakes becomes progressively more challenging as arrival detection methods become more sensitive, and particularly when earthquake rates are high. For instance, seismic waves arriving across a monitoring network from several sources may overlap in time, false arrivals may be detected, and some arrivals may be of unknown phase (e.g., P- or S-waves). We propose an automated method to associate arrivals with earthquake sources and obtain source locations applicable to such situations. To do so we use a pattern detection metric based on the principle of backprojection to reveal candidate sources, followed by graph-theory-based clustering and an integer linear optimization routine to associate arrivals with the minimum number of sources necessary to explain the data. This method solves for all sources and phase assignments simultaneously, rather than in a sequential greedy procedure as is common in other association routines. We demonstrate our method on both synthetic and real data from the Integrated Plate Boundary Observatory Chile (IPOC) seismic network of northern Chile. For the synthetic tests we report results for cases with varying complexity, including rates of 500 earthquakes/day and 500 false arrivals/station/day, for which we measure true positive detection accuracy of > 95%. For the real data we develop a new catalog between January 1, 2010 - December 31, 2017 containing 817,548 earthquakes, with detection rates on average 279 earthquakes/day, and a magnitude-of-completion of ~M1.8. A subset of detections are identified as sources related to quarry and industrial site activity, and we also detect thousands of foreshocks and aftershocks of the April 1, 2014 Mw 8.2 Iquique earthquake. During the highest rates of aftershock activity, > 600 earthquakes/day are detected in the vicinity of the Iquique earthquake rupture zone.
Accountant as Digital Innovator: Roles and Competencies in the Age of Automation

In this paper we explore how Robotic Process Automation (RPA) is changing the work of accountants, identify the roles that accountants will play in their organizations’ digital transformations, and categorize the skills and competencies that accountants will need to develop in order to successfully work alongside their digital colleagues. We employ a multiple case study methodology and collect interview data from eight organizations undergoing RPA implementation for their accounting and finance tasks. Our analysis reveals that accountants play important roles as identifiers, explainers, trainers, sustainers, and analyzers of their organizations’ automation initiatives. To prepare to undertake these five roles, accountants will need to acquire new technical skills. Therefore, the paper concludes with a mapping of the skills needed for each role that the accountant is expected to play in RPA implementations.
The time horizon of price responses to quantitative easing

Abstract Studies of how quantitative easing (QE) impacts asset prices typically look for effects in one- or two-day windows around QE announcements. This methodology underestimates the impact of QE on asset classes whose responses happen outside of this short time frame. We document that QE announcements by the Fed, ECB, and the Bank of England are associated with: quick price reactions of medium- and long-term government bonds; but with reactions in equity and equity implied volatility that occur over several weeks. Robustness checks using past monetary policy episodes and the cross-section of US industry returns confirm these results.
Reducing the Size of Internal Hierarchy: The Case of Multi-Unit Franchising

Abstract Successive layers of supervisor–subordinate relationships in organizations often distort information, increase monitoring costs, and lead to a cumulative loss of control. This paper discusses how some organizations can reduce their internal hierarchy by slicing it into two components and substituting the supervisor–subordinate relationship with an independent contract. This substitution allows the organization to shift its lower-level hierarchy to the contractors. These contractors are less likely to indulge in moral hazard, which can further reduce the size of hierarchy required. The paper examines this theory in the domain of multi-unit franchising and tests the hypotheses with a longitudinal data set.
Understanding Inflation in Malawi: A Quantitative Investigation

This paper focuses on the role of the pass-through of the exchange rate and policydeterminants in driving inflation. Using linear and nonlinear frameworks, the paper finds: (i) after the switch to a floating exchange rate regime in 2012, nonfood prices not only directly influence headline inflation, but also have an significant impact on food inflation via second round effects; (ii) the pass-through of the exchange rate to headline inflation has jumped from zero to 11 percent under the floating regime, after controlling for other factors; (iii) the improved significance of T-bill rates in shaping inflation flags its importance in Malawi's monetary framework although the monetary transmission mechanism needs further strengthening; (iv) the increased impact of broad money underscores the necessity for fiscal discipline and central bank independence.
Complicity and Compromise in the Law of Nations

This paper considers the implications of Chiara Lepora and Robert Goodin's On Complicity and Compromise (OUP, 2013) for our understanding of international law. That volume systematizes and evaluates individuals’ ethical choices in getting (too) close to evil acts. For the law of nations, these concepts are relevant in three critical ways. First, they capture the dilemmas of those charged with implementing international law, e.g., Red Cross delegates pledged to confidentiality learning of torture in a prison. Second, they offer a rubric for understanding when a state may use coercion against certain actors, e.g., international law's rules for when one state may use force against another based on the latter's ties to terrorist acts. Third, they offer a moral grounding for many international obligations of states based on the need to avoid their own complicity in others' wrongs, e.g., by not expelling refugees to a state persecuting them or by preventing private actors from committing human rights abuses. In the case of the last two, the law reflects decisions by states about how much complicity they will tolerate – either complicity by others or complicity by the states themselves. From the perspective of an international lawyer concerned with promoting the rule of law internationally, Lepora and Goodin's framework helps us appreciate the moral basis behind certain legal rules. To the extent we can see legal rules, international or domestic, as morally acceptable and just and not merely the product of power politics, we increase the prospects for compliance with them. A moral acceptable approach to complicity within the law can have more buy-in than a rule without such a moral grounding. Equally important, international law's approach to complicity helps our understanding of morality itself by marking some clear lines in the sand.
The influence of national culture and institutional voids on family ownership of large firms: A country level empirical study

Abstract There is considerable variation across countries in both the extent to which large publicly listed firms are family-owned and the dominance of such family-owned firms in stock markets. The literature presents competing theoretical viewpoints on what influences such country-level variation. On one hand, institutional economists suggest that institutional voids can have a strong influence. On the other hand, cultural sociologists suggest that a country's culture can have a strong influence. One type of institutional void is a lack of institutional norms and regulations needed for monitoring contracts (which can discourage owners from hiring professional agents for top management positions in their firms) and another type of institutional void is a lack of financial credit availability in the country. Cultural dimensions include collectivism (i.e. cohesion within in-groups/families) and power distance (i.e. inequalities in society). This country-level empirical study suggests that both national culture and institutional voids influence family ownership patterns around the world, and that institutional voids moderate the influence of national culture. National culture has a stronger influence when a country has institutional voids; however, the influence of national culture weakens when institutional voids are overcome.
Student abilities during the expansion of US education

Abstract The US experienced two dramatic changes in the structure of education in a 50 year period. The first was a large expansion of educational attainment; the second, an increase in test score gaps between college-bound and non-college-bound students. This paper documents the impact of these two trends on the composition of school groups by ability and the importance of these composition effects for wages. The main finding is that there is a growing gap between the abilities of high school and college-educated workers that accounts for one-half of the college wage premium for recent cohorts and for the entire rise of the college wage premium between the 1910 and 1960 birth cohorts.
Going Public, Selling Stock, and Buying Liquidity

It is a well known anomaly of corporation finance that initial public offerings (IPOs) tend to be underpriced. That is, it appears that shares tend to be offered at a price that is below what the market would bear. Scholars have offered several explanations, most of which focus on various sorts of underwriter opportunism (and insider acquiescence therein). But it is difficult to believe that competition among underwriters does not force offerings to be made at the highest possible price, particularly in view of the numerous alternatives to traditional underwriting methods that have arisen in recent years. The persistence of underpricing suggests that it may be attributable to market forces. In this paper, I consider the reasons why firms go public and how the reason for a public offering might affect the method used. Based on analysis of the reasons why firms go public and the means by which they do so, I surmise that underpricing may be attributable to an inherent discount imposed by the market as the price of access to liquidity. Indeed, the notion of underpricing is somewhat misleading. It would be more accurate to think of it as akin to a negative takeover premium. The fact that a bidder must pay a premium to acquire control of a target is unremarkable even if one assumes that the market is efficient. Similarly, it is only natural that a firm that wants to sell stock to the public must do so at something of a discount. In addition, this discount may be attributable to some extent to the need to persuade otherwise diversified investors who largely eschew stock-picking and instead tend to buy and sell stocks with a view to portfolio balancing to assume firm-specific risk in connection with an IPO. To test this hypothesis, I gathered data relating to the 34 IPOs made during October 1999. I find that the aggregate amount of underpricing for each offering money on the table as a percentage of market capitalization after the offering is relatively constant averaging 6.04% with a standard deviation of 4.75%. This finding is consistent with the hypothesis that underpricing may be related to offering size and total market capitalization. One possible explanation for how the market knows such things is that diversified investors who weight their portfolio holdings by market capitalization are willing to buy more shares of large capitalization issuers. If apparent underpricing is due to such factors, there is little reason for additional regulation of the new issues market.
Does Competition among Public Schools Benefit Students and Taxpayers

Tiebout choice among districts is the most powerful market force in American public education. Naive estimates of its effects are biased by endogenous district formation. I derive instruments from the natural boundaries in a metropolitan area. My results suggest that metropolitan areas with greater Tiebout choice have more productive public schools and less private schooling. Little of the effect of Tiebout choice works through its effect on household sorting. This finding may be explained by another finding: students are equally segregated by school in metropolitan areas with greater and lesser degrees of Tiebout choice among districts.
The impact of information technology use on plant structure, practices, and performance: An exploratory study

Firms have been investing millions of dollars on information technology (IT) in their manufacturing plants. However, the research literature is unclear about the extent and scope of the impact of IT use on plant operations. This study examines the impact of IT use on the structure, practices, and performance of manufacturing plants. Drawing on information systems and operations management literature, the study differentiates between plant IT use (i) at the process level, (ii) due to internal process integration, and (iii) due to customer and supplier collaboration, labeled as process intelligence, integration intelligence, and collaboration intelligence, respectively. The study also accounts for intelligence gathering due to statistical process control (SPC) practices. The proposed impacts of IT use are examined using data from a study sample of manufacturing plants from electronics, machinery and transportation component industries. Overall, the evidence suggests that SPC has a broader and more significant impact on many aspects of plant operations than the individual dimensions of IT use. However, the three dimensions of IT use do exhibit distinct effects on plant structure, practices, and performance. Process intelligence tends to be associated with plant size and productivity, while integration intelligence and collaboration intelligence tend to be associated with work practices related to increased organizational decentralization and a flexible technology focus.
Promoting healthcare innovation on the demand side

Innovation policy often focuses on fortifying the incentives of firms that develop and sell new products by offering them lucrative rights to exclude competitors from the market. Regulators also rely on these same firms-and on similar incentives-to develop information about the effects of their products in patients, despite their obvious conflict of interest. The result may be a distorted understanding that leads to overuse of expensive new medical technologies. Recent technological advances have put healthcare payers in an excellent position to play a larger role in future innovation to improve healthcare and reduce its costs. Insurance companies and integrated healthcare providers have custody of treasure troves of data about healthcare provision and outcomes that can yield valuable insights about the effects of medical treatment without the need to conduct costly clinical trials. Some integrated healthcare systems have seized upon this advantage to make notable discoveries about the effects of particular products that have changed the standard of care. Moreover, to the extent that healthcare payers can profit from reducing costs, they will seek to avoid inappropriate use of costly technologies. Greater involvement of payers in healthcare innovation thus offers a potential counterweight to the incentives of product sellers to promote excessive use of costly new products. In recent years, the federal government has sought to promote innovation through analysis of healthcare records in a series of initiatives; some picture insurers as passive data repositories, while others provide opportunities for insurers to take a more active role in innovation. In this paper, we examine the role of health insurers in developing new knowledge about the provision and effects of healthcare-what we call 'demand-side innovation'. We address the contours of this underexplored area of innovation and describe the behavior of participating firms. We examine the effects of current legal rules on demand-side innovation, including insurance regulation, intellectual property rules, privacy protections, and FDA regulation of new healthcare technologies. Throughout, we highlight many policy tools that government can use and is using to facilitate payer innovation outside the traditional toolkit of patents and exclusive rights.
Foreign exchange risk and the term-structure of industry costs of equity

Abstract This paper makes two contributions to the literature. First, we build on the methodology of Ang and Liu (2004) to model the cost of capital term-structure for firms subject to foreign exchange (FX) risk. We emphasize the role of time-varying parameters such as FX risk and factor loadings. Second, we estimate the term-structure for 39 U.S. industries. We find that: 1) FX exposure changes the position and shape of the term-structures; 2) The average FX risk premium is 2.29% for cash flows with short-term maturity, but declines as maturity increases; 3) The pricing error from ignoring the term-structure is smaller than the error resulting from the omission of the FX risk component.
Adjudication and Its Discontents: Coherence and Conciliation in Federal Indian Law

Federal Indian law is rooted in conflicting principles that leave the field in a morass of doctrinal and normative incoherence. In this Commentary, Professor Frickey begins by criticizing two recent efforts to bring coherence to this field. One approach, which narrows the scope of inquiry and attempts to apply non-normative doctrinal analysis, ignores the fictional nature of much federal Indian law doctrine and fails to appreciate the significance of normative and historical principles lurking behind the doctrine. The other approach, which seeks to construct a single descriptive paradigm from the case law, fails because federal Indian law precedents do not lend themselves to a unified theory. Professor Frickey suggests that greater coherence and respect for basic normative principles are likely to result from conceiving of the field as involving the process of negotiation among sovereigns rather than of adjudication in federal court.
Constrained after college: Student loans and early-career occupational choices

Abstract In the early 2000s, a highly selective university introduced a “no-loans” policy under which the loan component of financial aid awards was replaced with grants. We use this natural experiment to identify the causal effect of student debt on employment outcomes. In the standard life-cycle model, young people make optimal educational investment decisions if they are able to finance these investments by borrowing against future earnings; the presence of debt has only income effects on investment decisions. We find that debt causes graduates to choose substantially higher-salary jobs and reduces the probability that students choose low-paid “public interest” jobs. We also find some evidence that debt affects students' academic decisions during college. Our estimates suggest that recent college graduates are not life-cycle agents. Two potential explanations are that young workers are credit constrained or that they are averse to holding debt. We find suggestive evidence that debt reduces students' donations to the institution in the years after they graduate and increases the likelihood that a graduate will default on a pledge made during her senior year; we argue this result is more likely consistent with credit constraints than with debt aversion.
Trade and the Transmission of Technology

This paper integrates earlier studies on the link of productivity and research and development (R&D) in different industries of a closed economy with the more recent emphasis on R&D-driven growth and international trade in open economies. In this framework, technology in the form of product designs is transmitted to other industries, both domestically as well as internationally, through trade in differentiated intermediate goods. I present empirical results based on a new industry-level data set that covers more than 65 percent of the world’s manufacturing output and most of the world’s R&D expenditures between 1970 and 1991. The analysis considers productivity effects from R&D in the domestic industry itself, from R&D in other domestic industries, as well as in the same and other foreign industries. I estimate strong productivity effects both from own R&D spending and R&D conducted elsewhere. The contribution of R&D in the industry itself is about 50 percent in this sample. Domestic R&D in other industries is the source of 30 percent of the productivity increases, and the remaining 20 percent are due to R&D expenditures in foreign industries.
Relative labor productivity and the real exchange rate in the long run: evidence for a panel of OECD countries

Abstract The Balassa-Samuelson model, which explains real exchange rate movements in terms of sectoral productivities, rests on two components. First, it implies that the relative price of non-traded goods in each country should reflect the relative productivity of labor in the traded and non-traded goods sectors. Second, it assumes purchasing power parity holds for traded goods. We test both of these using a panel of OECD countries. Our results suggest that relative prices generally reflect relative labor productivities in the long run. The evidence on purchasing power parity in traded goods is less favorable, at least when we look at US dollar exchange rates.
Individual Differences in Applicant Reactions: A Job‐Search Perspective

This study used three variables from a self-regulatory job-search framework to investigate individual differences in the relationship between applicants' perceived procedural fairness of selection tests and job-pursuit intentions. Employment commitment, job-search self-efficacy, and motivational control were hypothesized to moderate the procedural fairness – job-pursuit intentions relationship while controlling for pretest attitudes and perceived performance. Applicants (N=291) for entry-level clerical jobs with large federal agencies completed pretest and posttest surveys. Results suggested that only job-search self-efficacy and motivational control moderated the relationship between perceived procedural fairness and job-pursuit intentions. The relationship was stronger for applicants with higher levels of job-search self-efficacy and lower levels of motivational control.
Rethinking Maximum Flow Problem and Beamforming Design through Brain-inspired Geometric Lens

Increasing data rate in wireless networks (e.g., vehicular ones) can be accomplished through a two-pronged approach, which are 1) increasing the network flow rate through parallel independent routes and 2) increasing the user’s link rate through beamforming codebook adaptation. Mobile relays (e.g., mobile road side units) are utilized to enable achieving these goals given their flexible positioning. First at the network level, we model regularized Laplacian matrices, which are symmetric positive definite (SPD) ones representing relay-dependent network graphs, as points over Riemannian manifolds. Inspired by the geometric classification of different tasks in the brain network, Riemannian metrics, such as Log-Euclidean metric (LEM), are utilized to choose relay positions that result in maximum LEM. Simulation results show that the proposed LEM-based relay positioning algorithm enables parallel routes and achieves maximum network flow rate, as opposed to other conventional metrics (e.g., algebraic connectivity).Second at the link level, we propose an unsupervised geometric machine learning (G-ML) approach to learn the unique channel characteristics of each relay-dependent environment. Given that spatially-correlated fading channels have SPD covariance matrices, they can be represented over Riemannian manifolds. Consequently, LEM-based Riemannian metric is utilized for unsupervised learning of the environment channels, and a matched beamforming codebook is constructed accordingly. Simulation results show that the proposed G-ML model increases the link rate after a short training period.
Does a Hospital’s Profit Status Affect its Operational Scope?

We empirically evaluate whether a hospital’s organizational form (for-profit vs. not-for-profit or public) affects its operational scope (distribution of supplied medical procedures). Our results suggest that scope depends more on local demographics than causal forces from organizational form. This suggestion is consistent with differences in objectives (e.g., altruistic motives) ultimately exerting a stronger influence on operational scope than does the organizational advantage of not-for-profits in producing higher levels of non-contractible quality. It also offers information about how the availability of different medical services might change if the hospital sector continues its trend toward for-profit organization. Here, hospital conversions to for-profit status appear less likely to alter the mix of available services than do outright exits of not-for-profits.
Financing decisions when managers are risk averse

Abstract Leverage raises stock volatility, driving a wedge between the cost of debt to shareholders and the cost to undiversified, risk-averse managers. I quantify these “volatility costs” of debt and examine their impact on financing decisions. I find that: (1) the volatility costs of debt can be large for executives exposed to firm-specific risk; (2) for a range of empirically relevant parameters, higher option ownership tends to increase, not decrease, the volatility costs of debt; and (3) for managers with stock options, a stock price increase typically raises volatility costs. For a large sample of US firms, I find evidence that volatility costs affect both the level of and short-term changes in debt, and that volatility costs help explain a firm's choice between debt and equity.