We propose to measure growth opportunities by firms’ exposure to idiosyncratic volatility news. Theoretically, we show that the value of a growth option increases in idiosyncratic volatility but its response to volatility of aggregate shocks can be either positive or negative depending on option moneyness. Empirically, we show that price sensitivity to variation in idiosyncratic volatility carr...

Despite the fact that importing and exporting are extremely rare firm activities, economists generally devote little attention to the role of firms when discussing international trade. This paper summarizes key differences between trading and non-trading firms, demonstrates how these differences present a challenge to standard trade models and shows how recent “heterogeneous-firm” models of int...

More than 20 million Americans are affiliated with multi-level marketing firms (MLMs), but there is little empirical evidence on who participates in this controversial part of today's labor market. We link data 350,000 individuals cited an Federal Trade Commission settlement one the largest MLMs to detailed county-level information. find that share refund claimants greater areas higher median i...

Many production firms use intermediary trading firms to export indirectly. This paper investigates the tax evasion motive through indirect trade, using Chinese export data at transaction level. We provide strong evidence that, under the partial export VAT rebate policy of China, production firms can effectively evade value-added taxes (VAT) by under-reporting their selling prices to domestic in...

Despite the fact that importing and exporting are extremely rare firm activities, economists generally devote little attention to the role of firms when discussing international trade. This paper summarizes key differences between trading and non-trading firms, demonstrates how these differences present a challenge to standard trade models and shows how recent “heterogeneous-firm” models of int...

A bank affiliated with a multi-bank holding company (MBHC) is significantly safer than either a stand-alone bank or a bank affiliated with a one-bank holding company. Not only does affiliation reduce the probability of future financial distress, but distressed affiliated banks are more likely to receive capital injections and recover more quickly than other banks. Interestingly, the effect of a...

The Policy Research Working Paper Series disseminates the findings of work in progress to encourage the exchange of ideas about development issues. An objective of the series is to get the findings out quickly, even if the presentations are less than fully polished. The papers carry the names of the authors and should be cited accordingly. The findings, interpretations, and conclusions expresse...

Taiwan’s Environmental Protection Administration (EPA) has enacted a food waste recycling policy since 2003 as an alternative of landfill and incineration for the final disposal of municipal solid waste. Recycled food waste is currently seen as a valuable material, especially when appropriate technology is developed. This paper conducts a cost/benefit analysis based on six cases of food waste c...

The failure rate of new service projects is high, because the knowledge about how innovations should be developed is limited. In the last decade, several studies have investigated the success factors associated with service innovations (e.g. AtuaheneGima, 1996; de Brentani, 2001; Storey and Easingwood, 1998). However, no research in new service development (NSD) has addressed the question of wh...