International Legal Institutions and the Globalization of Innovation Bo Bian, Jean-Marie Meier, and Ting Xu October 11, 2019 Abstract We study how innovation goes global in response to the establishment of strong international  legal institutions that reduce cross-border contracting frictions. We construct novel measures of the globalization of innovation at…

"Financial Crises: Research, Cases, and Courses"

The Natural Level of Capital Flows John D. Burger Sellinger School of Business, Loyola University Maryland Francis E. Warnock Darden Business School, University of Virginia NBER Veronica Cacdac Warnock Darden Business School, University of Virginia This Draft: November 2019 update (in progress) of NBER Working Paper 26184 Abstract We put…

Disclosure Crowdsourcing by Lawyers Michael Drake, Brigham Young University Kenneth Merkley, Indiana University Chase Potter, Indiana University John Treu, West Virginia University ABSTRACT Lawyers play an important advisory role in the IPO process, but our understanding of how they influence the process is limited. We provide evidence on the extent…

Financing Entrepreneurship: Tax Incentives for Early-Stage Investors Governments often subsidize startups with the goal of spurring entrepreneurship using tax incentives. Exploiting the staggered implementation of angel investor tax credits in 31 U.S. states from 1988 to 2018, we find that these programs increase the number of angel investments and average…

The Performance of Diverse Teams: Evidence from U.S. Mutual Funds We use the U.S. mutual fund industry to study the relation between team diversity and performance. Focusing on diversity concerning political ideology, we find that diverse portfolio manager teams outperform homogeneous teams and have a higher active share, and tracking…

Entrepreneurship and Regional Windfall Gains: Evidence from the Spanish Christmas Lottery The Spanish Christmas Lottery is the largest lottery worldwide. We exploit local windfall gains arising from lottery prizes to estimate the effect of income on entrepreneurship. We find higher firm creation and greater self-employment in winning provinces. Our estimates…

How do Extreme Price Movements End? (with Jonathan Brogaard and Konstantin Sokolov) Abstract: We test competing theories on liquidity dynamics during extreme price movements (EPMs). Contrary to a widespread concern that market making constraints cause liquidity deterioration during EPMs, our findings are in line with the theory of strategic liquidity…

"Where Do Institutional Investors Seek Shelter when Disaster Strikes? Evidence from COVID-19", with Simon Glossner, Stefano Ramelli, and Alexander F. Wagner

Financial Innovation with Endogenous Experimentation Zhaohui Chen, Alan Morrisson, and William Wilhelm We present a model in which a long-lived bank endogenously learns about the environment for financial innovation through experimentation on its clients. When the bank has superior knowledge of the state of the world facing its clients, it…

Exchange Rates and Endogenous Productivity Nils Gornemann, Pablo Guerron-Quintana, and Felipe Saffie September 15, 2020 Abstract Real exchange rates (RERs) display sizable fluctuations not only over the business cycle,but also at lower frequencies, resulting in large and persistent swings over decades—facts that many business cycle models struggle to match. We…