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In the neoclassical theory of the firm, actions are taken to maximize the present value of the firm's cash flows-there is no role for managerial attitudes in forming corporate policies. In contrast, our paper provides striking evidence that links psychological traits such as managerial risk aversion, time preference, and optimism to corporate financial(More)
This paper develops a consumption and portfolio-choice model of a retiree who allocates wealth in four asset classes: a riskless bond, a risky asset, a real annuity, and housing. The retiree chooses health expenditure endogenously in response to stochastic depreciation of health. The model is calibrated to explain the joint dynamics of health expenditure,(More)
This study examines the relationship between time discounting, other sources of time preference, and choices about smoking. Using a survey fielded for our analysis, we elicit rates of time discount from choices in financial and health domains. We also examine the relationship between other determinants of time preference and smoking status. We find very(More)
comments and suggestions. All remaining errors are our own. Abstract Beverage consumption occurs many times a day in response to a variety of needs that change throughout the day. In making their choices, consumers self-regulate their consumption by managing short run needs (e.g., hydration and mood pickup) with long-term goals (e.g., health). Using unique(More)
Experience in one product market can potentially improve firm performance in a related product market in the future. Thus, entry into a market is determined not just by profits in that market but also by its future impact on profitability in other markets. We formulate and estimate a dynamic model of entry decisions of firms in the presence of such(More)
We propose a likelihood based method that relies on sequential importance sampling to estimate dynamic discrete games of complete information with serially correlated unobserved state variables. Our method is applicable to similar games that have a Markovian representation of the latent dynamics and an algorithm to solve the game. We apply the method to a(More)
This research investigates whether or not employee engagement has an impact on upselling effectiveness in the car rental service industry, where upselling is a key performance metric for customer development. Our empirical strategy employs a series of simple empirical tests based on measures of engagement constructed using various subgroups of employees and(More)
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