Annual Conference

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Sustainable and Green Finance

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May 2025

Pricing the Priceless: The Financing Cost of Biodiversity Conservation

Fukang CHEN, Minhao CHEN, Lin William CONG, Haoyu GAO, Jacopo PONTICELLI
Biodiversity conservation incurs substantial economic costs. We investigate how financial markets price the risks such costs induce, exploiting the “Green Shield Action,” a major regulatory initiative launched in China in 2017 to enforce biodiversity preservation rules in national nature reserve...
Keywords: Alternative Data, Biodiversity Transition, Bonds, China, Sustainability
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Annual Conference

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Real Estate and Urban Economics

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May 2021

Pricing of Climate Risk Insurance: Regulatory Frictions and Cross-Subsidies

Ana-Maria TENEKEDJIEVA
Homeowners’ insurance provides households financial protection from climate losses. To improve access and affordability, state regulators impose price controls on insurance companies. Using novel data, we construct a new measure of rate setting frictions for individual states and show that differe...
Keywords: regional business cycles, dynamic spatial equilibrium, credit conditions, Mortgages, first-time buyers, home ownership, house prices, subsidies, Millennials."
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Senior Fellows/Fellows

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Senior Fellows/Fellows

Presidential Address: Social Transmission Bias in Economics and Finance

David HIRSHLEIFER
I discuss a new intellectual paradigm, social economics and finance: the study of the social processes that shape economic thinking and behavior. This emerging field recognizes that people observe and talk to each other. A key, underexploited building block of social economics and finance is socia...
Keywords: Social Transmission Bias, Social Economics, Social Finance, Behavioral Economics, Behavioral Finance, Social Networks, Social Learning, Information Percolation, Biased Percolation, Epidemiology, Visibility Bias, Self-Enhancin
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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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Mar 2023

Preparing for the (Non-Existent?) Future of Work

Anton KORINEK, Megan JUELFS
We analyze how to set up institutions that future-proof our society for a scenario of ever-more-intelligent autonomous machines that substitute for human labor and drive down wages. We lay out three concerns arising from such a scenario, culminating in the economic redundancy of labor, and evaluate ...
Keywords: automation, substitutability of labor, redundancy of labor, nostalgic jobs, work amenities, social i
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Annual Conference

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Investment Finance, Senior Fellows/Fellows

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May 2019

Premium for heightened uncertainty: Explaining pre-announcement market returns

Jun PAN, Haoxiang ZHU, Jiang WANG, Grace Xing HU
We find large overnight returns with no abnormal variance before nonfarm payrolls, ISM, and GDP announcements, similar to the pre-FOMC returns. To explain this common pattern, we propose a two-risk model with the uncertainty about the magnitude of the impending news' market impact as an additional r...
Keywords: Pre-Announcement Drift, Macroeconomic Announcements, FOMC, Heightened Uncertainty, VIX
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