We study how dominant employers can act as electoral monopsonies, directly shaping electoral outcomes by leveraging local labor market power. We consider a model where a dominant employer can reshape the political preferences of the local electorate by conditioning their...

We show that the standard econometric approach relying on exogenous residual supply shocks systematically underestimates the slope of investors' asset demand curves in dynamic settings. We develop a multi-asset, multi-agent continuous-time model featuring long-lived investors and short-lived hedgers whose demand...

This paper extends traditional cash-flow pricing to analyze the willingness-to-pay for changes in probabilities, that is, probability pricing. We show that an agent’s willingness-to-pay for an arbitrary probability perturbation can be expressed as a cash-flow pricing formula for hypothetical cash...

We study optimal contracting for innovation projects involving initial exploration followed by exploitation upon success, integrating the experimentation literature with dynamic corporate finance. The shape of the exploitation payoff frontier — not just its level — determines the optimal contract...

This paper derives necessary and sufficient conditions under which the firstorder characterization of Holmström (1979) robustly produces affine solutions: a risk-neutral principal, an agent with logarithmic utility, and output whose distribution depends on effort through a one-parameter exponential family with...

Using a general equilibrium model in which brown (polluting) and green (clean-energy) firms compete and seek financing from banks, non-banks, or the capital market, we examine the effects of higher capital requirements on brown bank loans designed to discourage such...