In recent years, microblogging has emerged as a disruptive new force in social networking. Unlike the bi-directional relationships on traditional SNS sites (such as Facebook), connections on most microblogging platforms (such as Twitter) is one-directional, by which users choose others to “follow” and each user has her own group of “followers”. Such asymmetric relationships are particularly ubi...

Using data from the Tanzania Social Capital and Poverty Survey (SCPS), a large scale survey which asked individuals about the extent and characteristics of their associational activity and their trust in various institutions and individuals, we construct a measure of “social capital” in rural Tanzania. By matching this measure of social capital with data on household incomes in the same village...

Facebook was initially designed as a social tool representing a person‟s social life, yet today it functions as a platform synthesizing all facets of life, including the work context. Within the frame of the social capital theory, a survey was conducted measuring Facebook users‟ experience, perceptions of privacy and career impression management. Results found that higher Facebook experience wa...

This paper examines the conditions required to guarantee positive prices in the CAPM. Positive prices imply an upper bound on the equity premium. This upper bound depends on the degree of diversity of firms’ fundamentals, and it is independent of investors’ preferences. In economies with realistically diverse assets the only positive-price CAPM equilibrium theoretically possible is a degenerate...

We examine how parent firm location influences the performance of subsequent entrepreneurial spawns into the hedge fund industry. We find that hedge fund managers who previously worked for parent firms located in the industry hubs—New York and London—outperform their peers, regardless of where the hedge fund is located. These results are robust to controls for selection into job spells in New Y...

We consider the standard discrete-time model of a frictionless financial market and show that the law of one price holds if and only if there exists a martingale density process with strictly positive initial value. In contrast to the classical no-arbitrage criteria, this density process may change its sign. We also give an application to the CAPM.

There is a growing literature which analyses, using cross-country data, whether institutions or geography is the most important deep determinant of economic development. The empirical proxies for institutions used in this literature focus on the definition of institutions, formal and informal. This study argues that the concept of informal institutions is similar to social capital. However, the...