The canonical model of Allingham and Sandmo (1972) predicts that firms evade taxes by optimally trading off between the costs benefits evasion. However, there is no direct evidence react to audits in this way. We conducted a large-scale field experiment collaboration with tax authority address question. sent letters 20,440 small- medium-sized collectively paid more than US$200 million per year....

This paper analyzes the implications of advertising for firm dynamics and economic growth through its interaction with R&D. We develop a model endogenous heterogeneity that incorporates decisions calibrate it to match several empirical regularities across size. Our provides microfoundations empirically observed negative relationship between both R&D intensity In calibrated model, about ...

We assess whether imperfect knowledge of labor regulation hinders job creation at small and medium-sized firms. partner with a law expert organization that provides information about via newsletters access to specialized website. randomly assign 1,800 firms get this service for 21-week period. Six months later, the average employment level treatment was 12 percent higher than control The interv...

ABSTRACT Designing around patents is prevalent but not often appreciated as a means by which promote economic development through competition. We provide novel empirical study of the extent and timing designing patent claims. filing rate incandescent lamp-related during 1878–1898 find that enforcement Edison’s lamp in 1891–1894 stimulated surge patenting. studied specific design features lamps ...

Existing studies using low-frequency data show that macroeconomic shocks contribute little to international stock market covariation. Those studies, however, do not account for the presence of asymmetric information, where sophisticated investors generate private information about the fundamentals that drive returns in many countries. In this paper, the authors use a new microstructure data set...

Buyers in the residential solar photovoltaic (PV) market are o‰en not fully informed about all competitors’ prices when making a purchase decision. Consumers’ lack of complete price information can incentivize sellers to charge higher markups, leading to less adoption. Large markups directly counteract public programs that subsidize solar PV. In this paper, I use proprietary data on consumers’ ...

This paper considers a public provider’s strategic use of rationing in a market served by both public and private providers. Such a ‘mixed’ market structure is common in many industries such as health care, telecommunication, postal service, and public utilities. The technology in the private sector exhibits increasing returns: each firm can expend ‘effort’ in the form of fixed cost to reduce t...

This paper examines the economic status and labour supply of older workers in Chile. It examines the extent to which the labour market is an important source of economic risk diversification for older workers and their households, and the influence of alternative sources: the family, social security, and accumulated assets. The main findings are firstly that there are important differences by a...

I develop a dynamic general equilibrium model of exchange traded funds (ETFs) that accounts for the two-tier ETF market structure with both a centralized exchange (secondary market) and a creation/redemption mechanism (primary market) operating through marketmaking firms known as Authorized Participants (APs). The model is tractable and allows for any number of ETFs and basket securities. I sho...

The literature nds that investors increase portfolio turnover following high returns, explaining it by either overcon dence or skilled trading. This paper develops a theoretical model and shows empirically that team-managed funds trade less after good performance than single-managed funds. The magnitude of this di erential increases with team size. Moreover, the change from singleto team-manage...