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Demand Volatility, Adjustment Costs, and Productivity: An Examination of Capacity Utilization in Hotels and Airlines

By R. Andrew Butters

American Economic Journal: Microeconomics, November 2020

Measures of productivity reveal large differences across producers even within narrowly defined industries. Traditional measures of productivity, however, will associate differences in demand volatility to differences in productivity when adjusting factor...

Designing Dynamic Research Contests

By Jean-Michel Benkert and Igor Letina

American Economic Journal: Microeconomics, November 2020

This paper studies the optimal design of dynamic research contests. We introduce interim transfers, which are paid in every period while the contest is ongoing, to an otherwise standard setting. We show that a contest where (i) the principal can stop the ...

Missing Events in Event Studies: Identifying the Effects of Partially Measured News Surprises

By Refet S. Gürkaynak, Burçin Kisacikoğlu, and Jonathan H. Wright

American Economic Review, December 2020

Macroeconomic news announcements are elaborate and multi-dimensional. We consider a framework in which jumps in asset prices around announcements reflect both the response to observed surprises in headline numbers and to latent factors, reflecting other n...