Decision Making & Negotiations

As unfunded pension liabilities grow, governments experiment with ways to curb costs. We examine the effect of a representative cost-cutting reform on the retention and productivity of workers. The reform reduced pension annuities and increased penalties for early retirement, projected to save 8 percent of revenues. We leverage administrative records and a discontinuity in the reform to estimate its effect on labor supply. The reform slightly increased worker retention, and we can rule out small attrition effects. The reform had no effect on worker output.

Infrastructure professionals (N = 261) were randomly assigned to either a future or present-framed project description and asked to recommend design attributes for an infrastructure project. The future-framed condition led professionals to propose a significantly longer infrastructure design life, useful life to the community, and acceptable return on financial investment. The findings suggest a straightforward and inexpensive way to lessen present bias in various design contexts

Most private wealth advisors (including trusts and estates lawyers, accountants and investment advisors) assume that a primary goal of their work is to reduce their clients’ taxes as much as possible, including to the point of elimination. The level of sophistication around tax reduction has grown substantially over the past few decades. This is especially true for family-owned businesses but also for all clients with substantial resources.

This research investigates the joint effect of calorie posting and social context on consumers’ food choices and embarrassment. We hypothesize and demonstrate that posting calorie information on a menu becomes more effective in reducing the total calorie of meal orders when the food is ordered in public (vs. in private).

Logos serve a fundamental role as the visual figureheads of brands. Yet, because of the difficulty of using unstructured image data, prior research on logo design has largely been limited to nonquantitative studies. In this work, we explore the interplay between logo design and brand identity creation from a data-driven perspective.

This article provides an applied introduction to Bartik instruments. The instruments attempt to reduce familiar endogeneity concerns in differential exposure designs (e.g., panel regressions with unit and time fixed effects). They isolate treatment variation due to the differential impact of common shocks on units with distinct pre-determined exposures. As a result, the instruments purge the treatment variation of possibly confounding factors varying across units over time.

Climate change is a complex phenomenon that the public learns about both abstractly through media and education, and concretely through personal experiences. While public beliefs about global warming may be controversial in some circles, an emerging body of research on the ‘local warming’ effect suggests that people’s judgments of climate change or global warming are impacted by recent, local temperatures.