Answering causal questions with generalizable results is challenging. Estimators requiring pseudorandomization provide estimates with no bias (i.e., strong internal validity) but …
We provide a systematic empirical assessment of the Minsky hypothesis that business fluctuations stem from irrational swings in expectations. Using predictable firm-level forecast …
We show empirically that firms increase cash holdings starting as early as one year before prescheduled (i.e., predictable) elections. Then, for four quarters around elections when …
We use M&A deal-level data and gubernatorial elections in a difference-in-difference framework to ask whether political uncertainty alters investment decisions by affecting firms …
I examine the link between political uncertainty and firm investment using U.S. gubernatorial elections as a source of plausibly exogenous variation in uncertainty. Investment …
We study how the delisting of a firm’s stock, and the accompanying drop in liquidity, causally affects a firm’s real economic decisions. Although delisting is endogenous, we …