Taming the rising costs of prescription drugs has been a focus of U.S. healthcare reform for the past decade. High drug prices limit patient access while also contributing to higher overall healthcare costs. Recently, issues of how drug list prices are set, who reaps the benefits, and how those costs are passed on to patients have come under increased scrutiny.
Yes. The quantity of risk underlying cross-sectional return spreads is time-varying, yielding swings in factors' risk premia. We define ``macro-relevant'' factors as those whose risk premium variation induce consumption fluctuations, and more broadly, a business-cycle.
We examine a perplexing phenomenon wherein technological innovations induce short-term contractions, using a two-sector New-Keynesian model. Pivotal to explaining the evidence are sticky prices, which alter the cyclicality of relative prices, impacting production during innovative phases.
Using machine learning techniques, we uncover an important number of dealers in the U.S. municipal bond market who focus on geographically adjacent states, a characteristic distinct from dealer centrality. These “specialized” dealers enjoy larger market shares in states with greater local ownership and in local bonds with more complex features. We also find that trades intermediated by these specialized dealers have significantly larger markups than those intermediated by national dealers.
Using firm-level administrative tax data, we document dramatic reductions in private leverage since the Global Financial Crisis, while leverage among public firms rose during this period. Our findings suggest that banks' credit supply plays a prominent role in explaining the leverage pattern of private firms.
We investigate claims that the complexity of the tax system discourages entrepreneurship. We use the implementation of tax filing assistance centers, which help entrepreneurs file their taxes, as sources of plausibly exogenous variation in the tax complexity effectively facing potential entrepreneurs.
This study provides evidence that retrospective adoption of an accounting standard improves the ability of investors and other financial statement users to assess a firm’s relative performance in the years surrounding adoption.
We provide a comprehensive overview of accounting-related regulatory changes (financial accounting, auditing, tax, other disclosures) in the 27 EU countries and the UK since the EU’s inception in 1993 (Maastricht Treaty) based on an extensive literature review, a survey, as well as input by country and topic academic experts.
This paper studies a long-term power purchase agreement (PPA) between a firm and a new renewable energy generator.
Private labels (PL), also known as store brands or private brands, account for hundreds of billions of dollars in consumer packaged goods sales every year. PLs build store loyalty, improve margins and have been a key factor in changing the balance of power between retailers and national brand (NB) manufacturers. Thus, retailers around the world have a stake in pushing their own store brands. Yet, while PLs enjoy great success in Western, and increasingly Central, Europe, their performance is much more muted in the world's largest market, the United States, and in emerging markets. Why is that the case?
This study examines whether the implementation of industry-specific accounting standards helps capital market participants in making decisions about providing capital to firms. We predict and find an, on average, increase in firms’ capital growth in years following implementation of the relevant industry standard.