Can working conditions explain the return-to-entrepreneurship puzzle?

Local Industrial Conditions and Entrepreneurship: How Much of the Spatial Distribution Can We Explain?

Why are some places more entrepreneurial than others? We use Census Bureau data to study local determinants of manufacturing startups across cities and industries. Demographics have limited explanatory power. Overall levels of local customers and suppliers are only modestly important, but new entrants seem particularly drawn to areas with many smaller suppliers, as suggested by Chinitz (1961). ...

Can the mirror world explain the ortho - positronium lifetime puzzle ?

We suggest that the discrepant lifetime measurements of ortho-positronium can be explained by ortho-positronium oscillations into mirror ortho-positronium. This explanation can be tested in future vacuum experiments. [email protected] [email protected] A “mirror universe” is predicted to exist if parity and/or time reversal are unbroken symmetries of nature [1,2]. The idea is th...

Can Perpetual Learning Explain the Forward Premium Puzzle?∗

Under rational expectations and risk neutrality the linear projection of exchange rate change on the forward premium has a unit coefficient. However, empirical estimates of this coefficient are significantly less than one and often negative. We investigate whether replacing rational expectations by discounted least squares (or “perpetual”) learning can explain the result. We calculate the asymp...

Equity Home Bias: Can Information Cost Explain the Puzzle?

Can Equity Volatility Explain the Global Loan Pricing Puzzle?∗

We examine whether equity volatility can explain the difference in syndicated corporate loan spreads paid by U.S. and European borrowers first documented by Carey and Nini (2007). We argue that OLS estimates of the association between equity volatility and loan spreads are biased and inconsistent. We suggest instrumental variables that potentially identify consistent estimates. Our instrumental...