We develop a simple model to examine the implications of prohibiting the use of credit histories in hiring practices. We empirically test the model using a recent law implemented in Chile.
In 1905-1935, the city of Los Angeles bought the water and land rights of the Owens Valley farmers and built an aqueduct to transfer the water to the city. The dark story is that Los Angeles bullied
Firm agglomeration is positively correlated with productivity, and it exhibits significant heterogeneity across industries. Yet, the connection between agglomeration and corporate investment remains
Consumers face a choice when evaluating financial contracts: study the fine print and incura cognitive cost or ignore it and risk costly surprises in future. We use a pair of policy changes in Chile
We exploit a unique natural experiment to structurally estimate the information frictions associated with switching costs. Specifically, we study a Chilean policy that simplified and standardized the