Senior Fellows/Fellows

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Senior Fellows/Fellows

The External Financing of Investment

Patrick VERWIJMEREN, Bruce GRUNDY
Controlling for a firm’s existing assets, capital structure and valuation, we document a strong link between an investment’s characteristics and the type of security issued if the investment is externally financed. Investments with more volatile and distant payoffs tend to be equity-financed. In...
Keywords: Investment characteristics, financing, debt-equity choice, convertible securities
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Senior Fellows/Fellows

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Senior Fellows/Fellows

The Evolution of Work from Home

Steven J. DAVIS, Nicholas A. BLOOM, Jose Maria BARRERO
Full days worked at home account for 28 percent of paid workdays among Americans 20-64 years old, as of mid 2023, according to the Survey of Working Arrangements and Attitudes. That’s about four times the 2019 rate and ten times the rate in the mid-1990s that we estimate in time-use data. We first...
Keywords: Work from home, productivity, labor costs, job amenities, pandemic
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Senior Fellows/Fellows

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Senior Fellows/Fellows

The Endowment Model and Modern Portfolio Theory

Stephen G. DIMMOCK, Neng WANG, Jinqiang YANG
We develop a dynamic portfolio-choice model with illiquid alternative assets to analyze conditions under which the “Endowment Model,” used by some large institutional investors such as university endowments, does or does not work. The alternative asset has a lock-up, but can be voluntarily liqui...
Keywords: endowment model, portfolio choice, liquidity, modern portfolio theory, asset allocation, alternative assets
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Annual Conference

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International Macroeconomics, Money & Banking

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May 2022

The Elusive Gains from Nationally Oriented Monetary Policy

Martin BODENSTEIN, Giancarlo CORSETTI, Luca GUERRIERI
According to one of the most striking results in the recent open macro literature, the gains from international monetary cooperation are negligible. We show that when assessed conditionally on empirically relevant dynamic developments of the economy, the welfare cost of moving away from regimes of e...
Keywords: monetary policy cooperation, global imbalances, open-loop Nash games
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Webinar Series

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Innovation, Productivity and Challenges in the Digital Era: Asia and Beyond

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Feb 2022

The Efficiency of A Dynamic Decentralized Two-sided Matching Market

Chenyu YANG, ZhiXi WAN, Tracy Xiao LIU
This paper studies a decentralized dynamic matching market by using data from a Chinese ride-sharing platform to estimate a model of search and matching between drivers and passengers. We measure passenger valuations of trips, driver preferences, distributions of planned search length, and waiting c...
Keywords: Dynamic Matching, Moment Inequality
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