Untangling Hair Braider Deregulation in Virginia
We estimate the effects of removing the license requirement for hair braiding in Virginia in 2012. Using County Business Patterns and Nonemployer Statistics data from 2004 through 2014, we find [...]
Trust in Lending
We develop a theory of trust in lending, distinguishing between trust and reputation, and use it to analyze the competitive interactions between banks and non-bank lenders (fintech firms). Trust enables [...]
Is Washington, D.C. prepared for the Amazon HQ2 ‘prosperity bomb’?
The most immediate impact of HQ2 for non-college-educated residents would most likely be higher housing costs due to increased demand from the influx of new workers. Housing is already pricey: [...]
The Impact of the Dodd-Frank Act on Small Business
There are concerns that the Dodd-Frank Act (DFA) has impeded small business lending. By increasing the fixed regulatory compliance requirements needed to make business loans and operate a bank, the [...]
Missing Novelty in Drug Development
This paper provides evidence that risk aversion leads pharmaceutical firms to underinvest in radical innovation. We define a drug candidate as novel if it is molecularly distinct from prior candidates. [...]
Dispelling Three Myths About Occupational Licensing
Myth: All licensing is necessary to protect public safety. Proponents often argue that the dramatic growth in occupational licensing is necessary to ensure consumer safety. However, the body of available [...]
Electoral Cycles in Prudential Regulation
A newly emerged consensus holds that policy makers should use macroprudential regulation to prevent financial crises or soften their impact on the real economy. Despite their widespread use, little is [...]
Taxes and Corporate Finance: A Review
This paper reviews tax research related to domestic and multinational capital structure, payout policy, compensation policy, risk management, and organizational form. For each topic, the theoretical arguments explaining how taxes [...]
Knocking on Parents’ Doors: Regulation and Intergenerational Mobility
The paper looks at whether the propensity of young people to follow the same career path as one of their parents is driven by privileges of position arising from regulation [...]
Are Higher Capital Requirements Worth It?
The studies I have reviewed suggest that for every 1 percent increase in capital minimums, lending rates will rise by 5 to 15 basis points and economic output will fall [...]