Using the first reported case of COVID-19 in a given US county as the event day, we find that
firms headquartered in an affected county experience, on average, a 27-bps lower return in …

In standard production models, wage volatility is far too high, and equity volatility is far too
low. A simple modification–sticky wages because of infrequent resetting together with a …

This paper studies how expected returns interact with product market competition. The
model predicts that (1) competition erodes markups, such that firms are more exposed to …

Why do stocks rise and fall? From the beginning of 1989 to the end of 2017, $34 trillion of
real equity wealth (2017: Q4 dollars) was created by the US corporate sector. We estimate …

Firm location affects firm risk through local factor prices. We find more procyclical factor
prices such as wages and real estate prices in areas with more cyclical economies, namely …

We show that labor market frictions are first-order for understanding credit markets. Wage
growth and labor share forecast aggregate credit spreads and debt growth as well as or …

We develop a model in which customer capital depends on key talents' contribution and
pure brand recognition. Customer capital guarantees stable demand but is fragile to …

ABSTRACT A single macroeconomic factor based on growth in the capital share of
aggregate income exhibits significant explanatory power for expected returns across a …

This paper jointly examines the link between competition and expected returns in the time
series and in the cross-section. To this end, we build a general equilibrium model where …

Many organizations have turned to “just-in-time” pay systems to manage fluctuations in
demand for products and services. For example, the trucking industry commonly pays truck …