Journal of Political Economy, Ahead of Print.

Exploring the formation mechanism of individual energy-saving behavior, especially from the perspective of individual micro characteristics, is important to alleviate energy shortage and achieve sustainable economic and social development. The impacts of individual emotional personality and rational personality on energy-saving behavior are analyzed by the hierarchical regression analysis, structural

Many public charging stations for electric vehicles in the United States are chargers installed at the premises of pre-existing businesses such as grocery stores or restaurants. This paper investigates the incentives of these retail businesses to install and operate charging stations. First, we note that observed pricing schedules for charging stations significantly depart from both first-best and

We construct a measure of systematic default defined as the probability that many firms default at the same time. We account for correlations in defaults between firms through exposures to common shocks. Systematic default spikes during recessions, is correlated with macroeconomic indicators, and predicts future realized defaults. More importantly, it predicts future equity and corporate bond index

Soaring energy prices have made the goal of price stability a challenge for monetary authorities worldwide. However, this challenge is exacerbated in the inflation-targeting economies that follow a floating exchange rate regime. Therefore, this study attempts to answer whether inflation targeting can achieve price stability if an exchange rate pass-through exists, especially in the presence of energy

Assessing the contribution of energy efficiency to climate change mitigation is crucial as global warming continues to persist. This study assesses the impact of energy efficiency on carbon intensity in Saudi Arabia and evaluates its potential contributions to the country's net-zero emissions target. We analyze time-series data for Saudi Arabia from 1971 to 2020 and estimate a quantile regression model

Journal of Political Economy, Ahead of Print.

Energy prices increased several folds due to the 2010 Iranian Energy Subsidy Reform. This study assesses the impact of the reform on the performance of the manufacturing sector using a detailed micro-panel dataset at the 4-digit ISIC level for the period 2009 to 2013. Since the reform universally affected all firms, the analysis relies on a quasi-experimental framework implementing first an explorative

This paper aims to identify factors that drive US clean-energy stock price movements in the short and long term, using a wide range of variables representing the carbon emission market, non-green financial assets, non-renewable commodities, macroeconomic fundamentals, investor attention and sentiment, and global stress and uncertainty. The empirical investigation is carried out in the context of the

Using an innovative method that segregates oil shocks into supply, consumption demand, and inventory demand factors, we find empirical evidence that managerial ability can have a significant but varying influence on firm performance under these circumstances. Generally, high-ability managers are most beneficial to manufacturing firms during oil shocks. In the event of oil supply shocks that are associated

Loan guarantees represent a form of government intervention to support bank lending. However, their use raises concerns as to their effect on bank risk-taking incentives. In a model of financial fragility that incorporates bank capital and a bank incentive problem, we show that loan guarantees reduce depositor runs and improve bank underwriting standards, except for the most poorly capitalized banks

We study optimal government support following a rare disaster that creates heterogeneous firm liquidity needs. Firms’ increase in debt reduces their output due to moral hazard. Banks are subject to a minimum capital requirement that limits deposit insurance costs upon bad aggregate shocks. Without government support, firms’ moral hazard and banks’ funding frictions reinforce each other amplifying output

In 2017, “The Big Three” institutional investors launched campaigns to increase gender diversity on corporate boards. We estimate that their campaigns led American corporations to add at least 2.5 times as many female directors in 2019 as they had in 2016. Firms increased diversity by identifying candidates beyond managers’ existing networks and by placing less emphasis on candidates’ executive experience

This article shows, for the first time, the degree of price volatility connectedness across the major regional ethanol markets in the U.S. Connectedness measures are based on forecast error variance decompositions that inform which prices drive system dynamics. We pay special attention to volatility spillovers to and from Chicago, as it is equipped with one of the largest terminals in the U.S. and

This research provides an empirical analysis of the dynamic relationship between clean and dirty energy markets. Specifically, we use Brent crude, West-Texas-Intermediate (WTI) crude, OPEC oil, Crude oil Oman and Crude Oil Dubai to denote dirty energy markets and use the S&P Global Clean Energy Index and WilderHill New Energy Global Innovation Index as a representative of the clean energy market. The

This paper investigates the unequal effect of Airbnb on the spatial organisation of economic activity in Madrid, Spain. Using establishment-level data from Madrid City Council and consumer-facing information from this short-term rental company, we find that Airbnb reshapes the urban space by encouraging tourist-oriented businesses, defined as businesses where tourists spend more than locals, at the

Using a dynamic real-option model of litigation, we show that the increasingly popular practice of third-party litigation financing has ambiguous implications for total ex-post litigant surplus. A defendant and a plaintiff bargain over a settlement payment. The defendant takes costly actions to avoid deadweight losses associated with large transfers to the plaintiff. Litigation financing bolsters the

Large price rises can lead to what has been termed a ‘heat or eat’ trade-off, where some low-income individuals must choose between energy use and putting food on the table. Low-income individuals are particularly at risk. There are effects on physical health from either restricted energy use or restricted food intake (in terms of quantity or nutritional value) and there may also be effects on mental

Journal of Political Economy, Ahead of Print.

Journal of Political Economy, Ahead of Print.

We develop a model in which specialized bond investors must absorb shocks to the supply and demand for long-term bonds in two currencies. Since long-term bonds and foreign exchange are both exposed to unexpected movements in short-term interest rates, a shift in the supply of long-term bonds in one currency influences the foreign exchange rate between the two currencies, as well as bond term premia

We develop a new class of general-equilibrium models with partially unfunded debt to propose a fiscal theory of persistent inflation. In response to business cycle shocks, the monetary authority controls inflation and the fiscal authority stabilizes debt. However, the central bank accommodates unfunded fiscal shocks, causing persistent movements in inflation, output, and real interest rates. In an

This paper documents the economic relevance of measuring cognitive uncertainty: people’s subjective uncertainty over their ex ante utility-maximizing decision. In a series of experiments on choice under risk, the formation of beliefs and forecasts of economic variables, we show that cognitive uncertainty predicts various systematic biases in economic decisions. When people are cognitively uncertain—either

Close-kin marriage, by sustaining tightly knit family structures, may impede development. We find support for this hypothesis using U.S. state bans on cousin marriage. Our measure of cousin marriage comes from the excess frequency of same-surname marriages, a method borrowed from population genetics that we apply to millions of marriage records from the eighteenth to the twentieth century. Using census

We provide evidence for a bias that we call “representative signal distortion” (RSD) which is particularly relevant to settings of statistical discrimination. Experimental subjects distort their evaluation of new evidence on individual group members and interpret such information to be more representative of the group to which the individual belongs (relative to a reference group) than it really is

Journal of Political Economy, Ahead of Print.

Journal of Political Economy, Volume 131, Issue 5, May 2023.

Journal of Political Economy, Volume 131, Issue 5, Page 1383-1383, May 2023.

Journal of Political Economy, Volume 131, Issue 5, May 2023.

The efficiency of sustainable growth has recently become a challenge attracting controversy. This paper provides a new investigation on the effect of digital finance on green innovation by solving the extreme corporate environment, social, and governance (ESG) hypocrisy resistance in firm behaviors. By constructing a unique panel of data spanning from 2013 to 2019, we draw several findings. First,

This study investigates the asymmetric linkage between oil price and current account balance (CAB) in ten oil-importing emerging countries by employing a unique “Quantile-on-Quantile” methodology. The estimations reveal that the oil price is adversely related to CAB in selected economies at various quantiles of data distribution. The findings suggest that the impact of oil prices on CAB is asymmetric

There is a proliferation of digitalisation of urban and health services in India under the Smart City and Digital Health missions, respectively. This study brings digital and feminist geographies together to understand the role of technologies in urban areas, particularly in health service delivery and how healthcare workers mediate these health platforms. Using a case study of Varanasi city in Uttar

This paper investigates the implications of uncertainty in the oil and gas sector for the dynamics of the price-cost markup at the business cycle frequency. We estimate a structural VAR model using U.S. quarterly data for the period 1982q2:2018q4, and find that an increase in oil uncertainty reduces the measured price-cost markup and economic activities. This result is consistent with the prediction

Crude oil price series are nonlinear and highly volatile, making it difficult to obtain satisfactory performance for traditional statistical-based forecasting methods. To improve forecasting accuracy, this study proposes a novel learning paradigm by integrating the trajectory similarity method with machine learning models based on the decomposition-ensemble framework. In the proposed learning paradigm

This paper investigates the historical value of electricity storage from the perspective of the storage owner in day-ahead markets (DAM) across Europe. A technology-neutral formulation is used, where the storage is modelled based on its round-trip efficiency and storage duration. A mixed-integer linear program (MILP) is built to compute the perfect-foresight value of a price-taker storage from arbitrage

The remarkable ascent of entrepreneurship witnessed as a scientific field over the last 4 decades has been made possible by entrepreneurship’s ability to absorb theories, paradigms, and methods from other fields such as economics, psychology, sociology, geography, and even biology. The respectability of entrepreneurship as an academic discipline is now evidenced by many other fields starting to borrow

We examine the role of first impressions in angel investor decision-making. Video stills of entrepreneurs pitching on the Shark Tank show and in Startup Battlefield competitions yield six measures of first impressions of entrepreneurs’ facial traits and two principal components: one that captures general ability and the other that contrasts charm and managerial ability. We find positive associations

This paper develops a multi-firm equilibrium model of information acquisition based on differences in firms’ characteristics. The model shows that heightened economic uncertainty amplifies stock price reactions to earnings announcements via increased investor attention, which varies by firm characteristics. Firms with higher systematic risk or more informative announcements attract more attention and

Journal of Political Economy, Ahead of Print.

The New Zealand Emission Trading Scheme (NZ ETS) is unique in that it includes forestry as a carbon sink (a source of unit supply). Further, NZ ETS has been subject to many policy changes including a switch from allowing unlimited importation of units to becoming completely autarkic. In this context, we analyse the pricing dynamics for New Zealand Units (NZUs) driven by the interaction between allowances

Labour market regulation constrains small and medium-sized enterprises’ (SMEs) ability to minimize redundant labour. However, it is often neglected that many SMEs might circumvent these constraints by accessing a business group’s internal labour market (ILM). In this study, we analyse whether SMEs with ILM access—i.e., with an increasing number of sister group companies in the same subnational region-industry—enjoy

This study analyses the role of weather conditions in driving the interdependence of the US commodities system comprising energy, agricultural, and metal markets from January 2000 to October 2021. By measuring the commodity markets systemic interdependence through dynamic equicorrelation (DECO), total returns spillover (TRS), upside and downside tail risk spillover (UTRS/DTRS), we investigate the co-vary

What drove inflation so high in 2022? Can it drop rapidly without a recession? The Phillips curve is central to the answers; its proper (nonlinear) specification reveals that the relationship is strong and frequency-dependent, and inflation is very persistent. We embed this empirically-successful Phillips curve – incorporating a supply-shocks variable – into a structural model. Identification is achieved

Electrification of all economic sectors and solar photovoltaics (PV) becoming the lowest-cost electricity generation technology in ever more regions give rise to new potential gains of trade. We develop a stylized analytical model to minimize unit energy cost in autarky, open it to different trade configurations, and evaluate it empirically. We identify large potential gains from interhemispheric and

Solar and battery adoption for households offers many benefits that motivate increased understanding of what drives investment. This paper uses microdata from a household survey in Kenya to investigate factors explaining investment in solar home systems, solar lighting systems, solar lanterns, and solar batteries. Key findings highlight the importance of assets for each investment type. Households

The current economic and political environment requires a rapid government response in managing the external and internal effects of economic shocks. Russian economy substantially relies on hydrocarbon revenue, thus the government formed National Wealth Fund (NWF) as a macroprudential instrument to mitigate the adverse effect of the global energy market. To this end, we utilise the Cross-Quantilogram

The existing literature attributes the recent decay of stock market anomalies to increased arbitrage activities (e.g., Chordia, Subrahmanyam, and Tong, 2014; McLean and Pontiff, 2016; Green, Hand, and Zhang, 2017). In this paper, we present evidence that the apparent demise of several prominent classes of stock market anomalies is better explained by changes in underlying fundamentals. The attenuation

Concerns about the incessant rise in emissions and their attendant effects on climate change, which is ravaging the globe, are on the ascendency. The literature has almost concluded that economic activities and growth contribute significantly to environmental degradation. Despite the plethora of studies on the effect of economic growth on environmental degradation, empirical studies examining the reverse

This paper establishes electricity consumption as an indicator for tracking economic fluctuations in Bangladesh. It presents monthly data on national electricity consumption since 1993 and subnational daily consumption data since February 2010. Electricity consumption is strongly correlated with other high-frequency indicators of economic activity, and it has declined during natural disasters and the

We use a test for co-explosiveness to improve our understanding of the effects of green finance on the valuation of stocks. First, by testing against temporary explosiveness in the MVIS Global Coal Index, the NASDAQ OMX Green Economy Index, and the MSCI World Equity Index, we find evidence for explosive periods in the latter two time series. Second, we use a recently proposed econometric procedure

We use the time-varying parameter structural vector autoregression stochastic volatility (TVP-SVAR-SV) and causality-in-quantiles methods to explore the linkage between market liquidity and efficiency in the European Union Emissions Trading Scheme (EU ETS) during Phase III. Our findings indicate that two-way causality existed under normal and lower market conditions. Additionally, the linkage between