Papers
Uploaded: Jan 18, 2025
Optimal Integration: Human, Machine, and Generative AI
I study the optimal integration of humans and technologies in multi-layered decision-making processes. Each layer can correct existing errors but may also introduce new ones. A one-dimensional quality metric – a decision-maker’s error correction capability normalized by its new errors...
Uploaded: Nov 22, 2024
Rules versus Disclosure: Prudential Regulation and Market Discipline
We study the joint design of two prominent micro-prudential policy tools: bank
regulation that enforces operational standards via rules, and market discipline through
information disclosure. Disclosure can be state-contingent but creates a trade-off between
incentives and the ex-post...
Uploaded: Nov 21, 2024
Blockchain for Environmental Monitoring: Theory and Empirical Evidence from China
We present the first piece of empirical evidence on blockchain adoption for environmental monitoring. Using a staggered difference-in-difference (DID) framework, we find that the concentrations of SO2, NO2, CO in blockchain adopting cities in China are on average lower by...
Uploaded: Nov 21, 2024
Cournot Competition, Informational Feedback, and Real Efficiency
We revisit the relationship between firm competition and real efficiency in a novel setting with informational feedback from financial markets. While intensified competition can decrease market concentration in production, it reduces the value of proprietary information (on, e.g., market prospects)...
Uploaded: Nov 21, 2024
Production, Trade, and Cross-Border Data Flows
We build a tractable general equilibrium model to analyze the effects of cross-border data flows and pre-existing development gaps in data economies on each country's production and international trade. Raw data as byproducts of consumption can be transformed into various...
Uploaded: Nov 21, 2024
The Rise of Factor Investing: Asset Market Implications and "Passive" Security Design
We model financial innovations such as Exchange-Traded Funds, smart beta products, and many index-based vehicles as composite securities (CSs) that facilitate trading the common factors in assets' liquidation values. Through accessing a larger basket of assets in endogenously chosen proportions,...