Department of Economics
New York University
19 West 4th Street, 5th Floor
New York, NY 10012
Institutional Affiliation: New York University
Information about this author at RePEc
NBER Working Papers and Publications
|October 2019||Demand Conditions and Worker Safety: Evidence from Price Shocks in Mining|
with Kerwin Kofi Charles, Matthew S. Johnson, Melvin Stephens Jr.: w26401
We investigate how demand conditions affect employers' provision of safety - something about which theory is ambivalent. Positive demand shocks relax financial constraints that limit safety investment, but simultaneously raise the opportunity cost of increasing safety rather than production. We study the U.S. metals mining sector, leveraging exogenous demand shocks from short-term variation in global commodity prices. We find that positive price shocks substantially increase workplace injury rates and safety regulation non-compliance. While these results indicate the general dominance of the opportunity cost effect, shocks that only increase mines' cash-flow lower injury rates, illustrating that financial constraints also affect safety.
|December 2018||Media Sentiment and International Asset Prices|
with Samuel P. Fraiberger, Damien Puy, Romain Rancière: w25353
This paper assesses the impact of media sentiment on international equity prices using a dataset of more than 4.5 million Reuters articles published across the globe between 1991 and 2015. Media sentiment robustly predicts daily returns in both advanced and emerging markets, even after controlling for known determinants of stock prices. But not all news sentiment is alike. A local (country-specific) increase in news optimism (pessimism) predicts a small and transitory increase (decrease) in local returns. By contrast, changes in global news sentiment have a larger impact on equity returns around the world, which does not reverse in the short run. Media sentiment affects mainly foreign – rather than local – investors: although local news optimism attracts international equity flows for a fe...