More Stories

Ikuzi dolls
Feature

A Line of Diverse Dolls Ensures Every Little Girl Feels Proud in Her Skin

Ozi Okaro ’03 founded Ikuzi Dolls to give her young daughters toys they could identify with.

two people in an office talking
Feature

The Power of Communicating Without Words

Sometimes we communicate more powerfully with our actions, although we are often unaware of it.

Protester shouting into a bullhorn
Podcast

What Can Businesses Learn from Protesters? (Part 1 of 2)

A look at the nature of protest itself.

Press

How You Feel Depends on Where You Are

Research from Sandra Matz shows that environment shapes our moods, potentially shedding light on the impact on individuals of months of isolation at home.

Press

Stereotypes Harm Black Lives and Livelihoods, but Research Suggests Ways to Improve Things

Modupe Akinola discusses her work on stereotyping, and how research can help us overcome our biases.

Press

Levi’s Agrees to #Payup, as Advocates Demand More for Garment Workers

The retailer is well-positioned to soften the blow dealt to garment workers by the pandemic, according to Urooj Khan.

Press

Do Americans Even Need A Second Stimulus Check?

For those with the least savings, stimulus checks provided a vital source of liquidity, Michaela Pagel and R.A. Farrokhnia find.

Latest Research

Financial Markets and News about the Coronavirus

Author
Harry Mamaysky
Date
Format
Working Paper
1 / 3

I examine how financial markets interact with news about the COVID-19 pandemic. A twelve topic model optimizes the trade-off between number of topics and topic coherence. Using this model, I show that before mid-March 2020 markets react more to the same quantum of news when volatility is higher – a phenomenon I call hypersensitivity. Formal tests identify a structural break in mid-March, post which markets are no longer hypersensitive. In the hypersensitive stage, markets are overly volatile and overreact to news. Despite hypersensitivity, lagged prices better forecast future COVID-19 case counts than do lagged news.

Can the COVID Bailouts Save the Economy?

Authors
Vadim Elenev, Tim Landvoigt, and Stijn Van Nieuwerburgh
Date
Format
Working Paper
2 / 3

The covid-19 crisis has led to a sharp deterioration in firm and bank balance sheets. The government has responded with a massive intervention in corporate credit markets. We study equilibrium dynamics of macroeconomic quantities and prices, and how they are affected by government policy. The interventions prevent a much deeper crisis by reducing corporate bankruptcies by about half and short-circuiting the doom loop between corporate and financial sector fragility. The additional fiscal cost is zero since program spending replaces what would otherwise have been spent on intermediary bailouts. The model predicts rising interest rates on government debt. We propose a more effective intervention with lower fiscal cost. Finally, we study longer-run consequences for firm leverage and intermediary health when pandemics become the new normal.

Pandemic Lockdown: The Role of Government Commitment

Authors
Christian Moser, and Pierre Yared
Date
Format
Working Paper
3 / 3

This note studies optimal lockdown policy in a model in which the government can limit a pandemic's impact via a lockdown at the cost of lower economic output. A government would like to commit to limit the extent of future lockdown in order to support more optimistic investor expectations in the present. However, such a commitment is not credible since investment decisions are sunk when the government makes the lockdown decision in the future. The commitment problem is more severe if lockdown is sufficiently effective at limiting disease spread or if the size of the susceptible population is sufficiently large. Credible rules that limit a government's ability to lock down the economy in the future can improve the efficiency of lockdown policy.

Latest Webinars & Presentations

Type
Webinar
Date
The Workplace, Leadership, Social Impact

The Intersection of Housing and Technology With Inclusive Leadership

Robert Reffkin ’03, founder and CEO of Compass, discusses with Professor Christopher Mayer his optimism about the present and future of the housing market and emphasizes the importance of building a company that focuses on inclusivity.

Type
Webinar
Date
Leadership, The Workplace

The Human Experience of COVID-19

Sandra Matz and Daniel Ames share insights into why individuals experience the same pandemic in different ways.

Type
Webinar
Date
Economics & Policy, Data & Business Analytics

Government Debt and Deficit: Myth or Reality

Professor Shivaram Rajgopal moderates a debate between economist Jared Bernstein and financial expert Paul Kazarian ’81 on deficits during the pandemic.

Type
Webinar
Date
The Workplace, Leadership, Social Impact

The Role of Diversity, Equity, and Inclusion Leaders

Erika Irish Brown ’98, Chief Diversity Officer for Goldman Sachs, joins Vice Dean of Diversity, Equity, and Inclusion Gita Johar for a conversation on the role businesses can play in addressing racial and social justice.

Type
Webinar
Date
Entrepreneurship & Innovation, Economics & Policy

Long-Term Vision in Venture Capital and the Upsides to Being an Entrepreneur in a Downturn

Professor of Professional Practice Angela Lee explains how there are opportunities for investors during the pandemic even though she believes the worst of the downturn is yet to come.

Rise to the challenge.

The COVID-19 pandemic has changed the world of business, while bringing historical inequities and injustice into sharp relief.

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