Annual Conference

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Corporate Finance

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May 2017

Do Credit Card Companies Screen for Behavioral Biases?

Hong RU, Antoinette SCHOAR
Using granular data on the contract terms and design details of more than 1.3 million credit card offers, we document how card issuers shroud unappealing, back-loaded features of an offer (e.g., high default APRs, late or over-limit fees) via the position of the information, font size, or complexity...
Keywords: Credit card, Shrouding, Back-loaded
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Annual Conference

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Economic Transformation of Asia

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May 2017

Do Programs Mandating Small Business Lending Disincentivize Growth? Evidence from a Policy Experiment

Gursharan BHUE, Prasanna TANTRI, Nagpurnanand PRABHALA
Exploiting discontinuities in program eligibility, we show that mandates on banks to lend to small firms inhibit firm growth. Newly eligible firms near the upper threshold for treatment exhibit significant real-side slowdown in investment, sales, and a nonaccounting measure, power consumption. The e...
Keywords: Small Business Lending, firm growth
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Annual Conference

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International Macroeconomics, Money & Banking

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May 2017

Do Term Premiums Matter? Transmission via Exchange Rate Dynamics

Mitsuru KATAGIRI , Koji TAKAHASHI
The macroeconomic effect of term premiums is a controversial issue both theoretically and quantitatively. In this paper, we explore the possibility that term premiums affect inflation and the real economy via exchange rate dynamics. For this purpose, we construct a small open economy model with limi...
Keywords: exchange rate, Term Premium, Uncovered Interest Rate Parity
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Annual Conference

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Corporate Finance

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May 2017

Drivers of Effort: Evidence from Employee Absenteeism

Margarita TSOUTSOURA , Daniel WOLFENZON, Morten BENNEDSEN
We use detailed information on individual absent spells of all employees in 4140 firms in Denmark to show large differences in average absenteeism across firms. Using employees who switch firms, we decompose days absent into an individual component (e.g., motivation, work ethic) and a firm component...
Keywords: family firms, organizational structure, employee effort
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Annual Conference

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Economic Transformation of Asia

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May 2017

A Structural Estimation of the Return to Infrastructure Investment in China

Guiying Laura WU, Zhifeng WANG, Qu FENG
This paper develops a model of endogenous productivity to examine the impact of public infrastructure investment on output. It matches firm-level production data with province-level infrastructure data to address a set of wellknown identification issues in the literature, and employs a structural es...
Keywords: Public Infrastructure Investment, Productivity, Rate of Return, Resource Reallocation
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