Journal of Political Economy, Volume 132, Issue 9, September 2024.

Journal of Political Economy, Volume 132, Issue 9, Page 3214-3214, September 2024.

Journal of Political Economy, Volume 132, Issue 9, September 2024.

Using granular data on U.S. hotel investments over the past two decades, we show that industry-specialist PE firms achieve higher net income from operations and higher capital gains from sale than generalist PE firms for comparable properties. Those results are driven by specialists implementing more and larger cost savings without compromising revenues. Fundamentally, specialists utilize their hotel-specific

Journal of Political Economy, Ahead of Print.

In recent decades, though the number of female entrepreneurs has grown, a gender gap remains. Self-confidence plays a pivotal role in understanding these differences. We examine gender and target margins in a vast dataset spanning Latin America, the Caribbean, and Sub-Saharan Africa. We use linear and interval regression analysis to estimate the relationship between gender and setting target margins

During the Covid-19 pandemic, the governments of many countries adopted measures to support the population during the lockdowns and periods of reduced economic activity. In the Republic of Georgia, in April 2020 the government announced that it would pay the electricity bills of residential customers in April and May 2020, effectively making electricity free, as long as usage would not exceed 200 kWh/month

Retired battery recycling and information leakage prevention under blockchain introduction intertwine in the new energy vehicle (NEVs) supply chain, but rare literature has jointly investigated them. Therefore, we characterize the vehicle goodwill under recycling and marketing efforts as well as the automobile demand function with and without blockchain introduction, identify the long-run discounted

We develop a general equilibrium model of self-fulfilling bank runs. The key novelty is the way in which the banking system’s assets and liabilities are connected. Banks issue loans to entrepreneurs who sell goods to households, which in turn pay for the goods by redeeming bank deposits. The return on bank assets is thus contingent on households being able to withdraw their deposits. In a run, not

Renewable Energy Power Purchase Agreements (RE PPAs) are considered to be a key tool in order to foster RE deployment, as they allow for the reduction of uncertainty for all parties as well as facilitating access to the long term finance required for such projects. Nevertheless, RE PPA adoption is hampered by a number of barriers, including the high level of guarantees demanded from offtakers, a problem

This paper explores the use of social signaling as a policy tool to sustainably affect childhood immunization. In a 26-month field experiment with public clinics in Sierra Leone, I introduce a verifiable signal—in the form of color-coded bracelets—given to children upon timely completion of the first four or all five required vaccinations. Signals increase parents’ belief in the visibility of their

We develop a structural credit risk model, which allows us to price equity/credit indices and their options through the asset dynamics of index constituents. We estimate the model via MLE and find that equity and credit index option prices are well explained out-of-sample. Contrary to recent empirical findings, the two option markets are not inconsistently priced through the lens of our model. Returns

We provide the first analysis of the risk exposure and risk-adjusted performance of impact investing funds, private market funds with dual financial and social goals. We introduce a dataset of impact fund cash flows and exploit distortions in VC performance measures to characterize risk profiles. Impact funds have a lower market than comparable private market strategies. Accounting for , impact funds

We propose no-arbitrage term structure models with volatility factors that follow GARCH processes. The models’ tractability is similar to canonical affine term structure models, but they fit yield volatility much better, especially for long-maturity yields. This improvement does not come at the expense of a deterioration in yield fit. Because of the improved volatility fit, the model performs substantially

Journal of Political Economy, Ahead of Print.

We document aggregate outflows from corporate bond mutual funds days before and after the announcement of increases in the Federal Funds Target rate (FFTar). To rationalize this phenomenon, we build a model in which funds’ net-asset-values (NAVs) are stale and investors strategically redeem to profit from the mispricing when they learn about the increases of FFTar. Consistent with the model’s predictions

We examine mortality differences between American adults with and without a four-year college degree over the period 1992 to 2021. Mortality patterns, in aggregate and across groups, can provide evidence on how well society is functioning, information that goes beyond aggregate measures of material well-being. From 1992 to 2010, both educational groups saw falling mortality, but with greater improvements

Contrary to historical episodes, the 2022–2023 tightening of US monetary policy has not yet triggered financial crisis in emerging markets. Why is this time different? To answer this question, we analyze the current situation through the lens of historical evidence. In emerging markets, the financial channel–based transmission of US policy historically led to more adverse outcomes compared to advanced

Applications for new businesses surprisingly surged during the COVID-19 pandemic, rising the most in industries rooted in pandemic-era changes to work, lifestyle, and business. The unexpected surge in applications raised questions about whether a surge in actual new employer businesses would follow. Evidence now shows increased employer business entry with notable associated job creation; and industries

We interpret recent inflation experience through the lens of a New Keynesian model with price and wage rigidities and nonlabor inputs in inelastic supply. The model provides a natural interpretation of some features of the recent episode: an initial surge of noncore inflation, followed by a lagged response of core inflation and a further lagged, persistent response of wage inflation. The model also

The Russian attack on Ukraine in February 2022 laid bare Germany's dependence on Russian energy imports and ignited a heated debate on the costs of a cutoff from Russian gas. While one side predicted economic collapse, the other side (ours) predicted "substantial but manageable" economic costs due to households and firms adapting to the shock. Using the empirical evidence now at hand, this paper studies

This study aims to investigate the impact of the energy transition on asset pricing by analyzing the different sources of systemic risk in a comprehensive system of one traditional energy ETF, one clean energy ETF, seven oil-exporting country ETFs, and six oil-importing country ETFs. We find that shocks to the traditional (clean) energy market are the primary source of short-term (long-term) systemic

Enterprise policy, which seeks to stimulate start-ups and support small businesses, attracts significant investment from government and shapes the context for entrepreneurs. Researchers have begun to study the processes underlying the formulation of enterprise policy. However, accounts of how competing interests seek to influence enterprise policymaking processes remain rare. Utilising a distinctive

The policy that is most widely applied to the biofuel market in the world is the mandatory blend. This policy aims to induce the use of biofuels by setting a minimum level of biofuel per unit of blended fuel. This paper studies the costs and benefits of such a policy. To do so, a Recursive Computable General Equilibrium model (CGE), calibrated with a new own-developed energy-oriented Social Accounting

We analyze the impact of different state tax structures and resource ownership policies on natural and shale gas production. Using state-level, quarterly data from seven of the largest shale gas-producing states from 2007 to 2020, we find evidence that both the type of taxation method and the presence of a forced pooling law impact natural gas production. Using random effects models, we find that impact

This study employs the generalized extreme value - autoregressive conditional Fréchet - tail quotient correlation coefficient (GEV-AcF-TQCC) analytical framework to investigate the extreme co-movements between the EU carbon futures market and the commodity futures market. Subsequently, it also examines the response of the dynamic tail quotient correlation coefficient (TQCC) values to economic policy

This paper examines the dynamic impact of economic activity, Baltic dry bulk and economic policy uncertainty on oil prices. Drawing on demand-side economic theory, we focus on how economic activity and economic policy uncertainty drive oil prices and subsequently contribute to the formation of market equilibrium. In this context, we first introduce a unidirectional quantile and time-varying Granger-causality

A critical question facing speculators contemplating to trade on private information is whether their signal has already been priced in by the market. In our model, speculators assess the novelty of their information based on recent price movements, and market makers are aware that speculators might be trading on stale news. An asymmetric response to past price movements ensues: after price increases

Journal of Political Economy, Volume 132, Issue 8, August 2024.

Journal of Political Economy, Volume 132, Issue 8, Page 2880-2880, August 2024.

Journal of Political Economy, Volume 132, Issue 8, August 2024.

This work explores the uniqueness of Nash–Cournot equilibria in wholesale electricity markets with both thermal and renewable generation in the presence of demand uncertainty. Criteria guaranteeing a unique equilibrium are derived for an energy market where each firm owns a share of renewable generation. This work expands upon the uniqueness results proven by Lagerlöf (2006) to incorporate the presence

How can economies achieve economic growth without causing negative environmental externalities? There are two aspects to the long-standing debate on ‘sustainable growth’. A first-best solution is for economies to replace fossil fuels with renewable energy sources, mitigating carbon emissions. A second-best solution is to also adopt efficient waste management, recycling residual waste and pollutants

In this article, I analyze whether German gasoline stations passed on the gasoline tax reduction to consumers. I use a difference-in-differences approach with France as the control group, as well as data for all countries in the European Union. The German fuel discount was in effect from June to August 2022. As I am the first to use complete French and German high-frequency data for the entire treatment

We analyse linkages between sustainable bond markets and a number of key financial markets in Europe, namely corporate bond, sovereign bond, renewable energy, equity and volatility markets. We apply a novel empirical approach using zero-volatility spreads (z-spreads) as a measure of relative bond performance to adjust for the sensitivity of bond prices to changes in interest rates. We model these linkages

Recently, there has been growing concern about the impacts of geopolitical tension as well as economic and political uncertainties on the decision-making process of governments when it comes to allocating resources for renewable energy R&D. This paper employs the panel autoregressive distributed lag (ARDL), cross-sectional panel autoregressive distributed lag (CS-ARDL) and Fully Modified Ordinary Least

The volatility of crude oil price can significantly impact the stability of the crude oil market and even the global economy. Effectively predicting global crude oil price and volatility provides a scientific basis for decision-making for market regulators and investors worldwide, promoting the sound development of the global economy. In this study, we integrate signal processing with deep learning

This paper aims to investigate whether fuel retailers strategically increased prices following a subsidy intended to cover a mandatory discount and to assess its impact on transmission to consumers. Introduced by the Spanish government in April 2022 to counter soaring fuel prices resulting from the Ukraine conflict, the impact of this subsidy is analyzed using a nonlinear autoregressive distributed

Communication between different fields in universities is often hindered by the “multi-tower” problem: each focuses on its own questions and issues and tends to ignore work in other, even closely related ones. This occurs in part, because each field has its own terminology theories, journals, and conferences and because university policies claiming ownership of researchers’ findings restrict them from

Journal of Political Economy, Ahead of Print.

Journal of Political Economy, Ahead of Print.

In many oil- and natural gas-producing countries, fuels are allocated to the electricity sector at administratively set prices below international market prices for domestic policy reasons. This article shows that dispatching power units based on the opportunity costs of domestically used fuels can yield significant efficiencies, while end-user electricity prices can continue to reflect administratively

The shortage of oil and gas supply to Europe during the Russia-Ukraine conflict has triggered a price hike in the European energy sector. To mitigate the impact of higher energy prices on consumers, the EU introduced a price ceiling mechanism to curb gas prices from exceeding market norms. This interplay between supply shortages and price controls further heightened volatility in energy market prices

We examine jump, positive-jump, negative-jump, and co-jump behaviors in brown (energy-intensive) and green (energy-efficient) cryptocurrency markets. We further investigate how the newly proposed energy-related uncertainty index () correlates with jumps and co-jumps of these two types of cryptocurrencies. Our results show that jumps have decreased in recent years, signaling an improvement in market

As disclosure mandates shift their focus towards supply chain carbon accountability, firms are compelled to enhance carbon outcomes throughout their supply chain. The literature suggests that green supply chain management (hereafter, GSCM) plays an essential role in enhancing firms' environmental performance. However, there is a dearth of evidence on the possible informational effects of GSCM on Scope

To achieve Sustainable Development Goal (SDG) 7, prioritizing the socially disadvantaged segments of the population is imperative, given their inherent susceptibility to heightened risks of energy exclusion. However, a comprehensive understanding of the diverse energy challenges faced by households with socio-economic disparities remains elusive. This article thus addresses this gap by examining three

The expansion of electric vehicles (EVs) and renewable energy (RE) are the two major strategies countries are adopting to achieve energy transition. However, the discrepancy between intermittent RE generation and EV charging load may impose burden on the RE-dominant power grid of the future. For the issue, Time-of-Use (ToU) pricing for EV charging has been widely discussed or adopted as its potential

This study explores whether emerging economic blocs can decouple economic growth from carbon emissions amidst global climate change concerns, integrating Environmental Kuznets Curve (EKC) theory, Stakeholder theory, and Ecological Modernization Theory (EMT). Using fuzzy-set qualitative comparative analysis (fsQCA), it examines the relationship between monetary policy and carbon emissions in two key

The circular economy has emerged as a crucial way for companies to achieve their sustainability goals. Numerous businesses, especially small and medium-sized enterprises (SMEs), are integrating circular-economy projects into their operations. However, this undertaking presents multiple challenges as many managers must grapple with constraints in resources and expertise. This study’s primary objective

In this paper, we analyse the long-run industry configuration of an oligopoly where profit-seeking (PS) and environmentally socially responsible (ECSR) firms compete in quantities. We adopt an evolutionary setting to determine the firms’ endogenous choice of statute (PS or ECSR). Pollution is regulated through an Emission Trading System (ETS) scheme that allocates emissions rights to firms. Firms may

Journal of Political Economy, Ahead of Print.

Journal of Political Economy, Ahead of Print.

Journal of Political Economy, Ahead of Print.