Nonlinear Principal Components and Long-run Implications of Multivariate Diffusions (2009)
Chen, Xioahong, Hansen, Lars Peter, Scheinkman, Jose
We investigate a method for extracting nonlinear principal components (NPCs). These NPCs maximize variation subject to smoothness and orthogonality constraints; but we allow for a general class of...
Family Firms, Paternalism, and Labor Relations ∗ (2006)
Lucian Bebchuk, Andrew Clark, Michael Faulkender, Radha Gopalan, Oliver Hart, Winfried Koeniger, ...
Using firm-, industry-, and country-level data, we document a link between family ownership and labor relations. Across countries, we find that family ownership is relatively more prevalent in...
Carlos Arteta, Galina Hale, Carlos Arteta, Galina Hale, Enrique Mendoza, Paolo Pasquariello, ...
The views in this paper are solely the responsibility of the authors and should not be interpreted as reflecting the views of the Federal Reserve Bank of San Francisco or the Board of Governors of...
The injustice of inequality (2003)
Edward Glaeser, Jose Scheinkman, Edward L. Glaeser, Andrei Shleifer, Andrei Shleifer
In many countries, the operation of legal, political and regulatory institutions is subverted by the wealthy and the politically powerful for their own benefit. This subversion takes the form of...
Per Bak, Kan Chen, Jose Scheinkman, Michael Woodford
This paper illustrates how fluctuations in aggregate economic activity can result from many small, independent shocks to individual sectors. The e#ects of the small independent shocks fail to cancel...
Speculative Trading and Stock Prices: Evidence from Chinese A-B Share Premia
Jianping Mei, Jose Scheinkman, Wei Xiong
The market dynamics of technology stocks in the late nineties has stimulated a growing body of theories that analyze the joint effects of short-sales constraints and heterogeneous beliefs on stock...
Asset Float and Speculative Bubbles
Harrison Hong, Jose Scheinkman, Wei Xiong
We model the relationship between asset float (tradeable shares) and speculative bubbles. Investors trade a stock with limited float because of insider lock-ups. They have heterogeneous beliefs due...
Pay for Short-Term Performance: Executive Compensation in Speculative Markets
Patrick Bolton, Jose Scheinkman, Wei Xiong
We argue that the root cause behind the recent corporate scandals associated with CEO pay is the technology bubble of the latter half of the 1990s. Far from rejecting the optimal incentive...
Edward L. Glaeser, Jose Scheinkman, Andrei Shleifer
In many countries, the operation of legal, political and regulatory institutions is subverted by the wealthy and the politically powerful for their own benefit. This subversion takes the form of...
Long Term Risk: An Operator Approach
Lars Peter Hansen, Jose Scheinkman
We create an analytical structure that reveals the long run risk-return relationship for nonlinear continuous time Markov environments. We do so by studying an eigenvalue problem associated with a...
The Importance of Bundling in a Gorman-Lancaster Model of Earnings.
Heckman, James, Scheinkman, Jose
This paper considers a multisector Gorman-Lancaster linear characteristics model of earnings in which workers cannot unbundle their skills. Conditions are presented under which characteristics are...
Peter Bak, Kan Chen, Jose Scheinkman, Michael Woodford
This paper illustrates how fluctuations in aggregate economic activity can result from many small, independent shocks to individual sectors. The effects of the small independent shocks fail to cancel...
Edward L. Glaeser, Jose Scheinkman
A large body of recent research argues that social, or non-market, interactions can explain a wide range of puzzling phenomena from fashion cycles to stock market crashes. This paper attempts to...
Executive Compensation and Short-termist Behavior in Speculative Markets
Patrick Bolton, Jose Scheinkman, Wei Xiong
We present a multiperiod agency model of stock based executive compensation in a speculative stock market, where investors are overconfident and stock prices may deviate from underlying fundamentals...
Principal Components and Long Run Implications of Multivariate Diffusions
Xiaohong Chen, Lars Peter Hansen, Jose Scheinkman
We investigate a method for extracting nonlinear principal components. These principal components maximize variation subject to smoothness and orthogonality constraints; but we allow for a general...