Product Market Competition and the Value of Innovation: Evidence from US Patent Data (with Hyun Joong Im and Young Joon Park)
-- Economics Letters, December 2015, 137, 78-82.
The effect of technological imitation on corporate innovation: Evidence from US patent data (with Hyun Joong Im),
-- Research Policy, 2019, 48, 103802.
We develop an approach to identify whether satellite-based macro forecasts can provide an independent alternative to government-produced data. We measure how satellite forecasts are affecting the value of government macro information using the price impact of such macro announcements. Our identification comes from variations in cloud cover, which prevents satellites from observing economic activity at a few hubs key to macro forecasting, thereby creating randomness in the accuracy of satellite forecasts. Applying our approach, we find that - at least in some contexts - satellite forecasts are now so informative about macroeconomic conditions that markets are no longer surprised by government announcements.
Access to Credit and Individual Occupational Choice
We show that access to credit can improve the labor market outcome with increased labor mobility and a better quality of match. Using an exogenous launch of government credit program, the results of the paper provide the evidence that better access to credit increases the probability of job change by 36.9% and shortens the tenure by 0.70 years for employees in Korea. In addition, the paper shows that an employee with better credit access is more likely to jump across the industry/duty implying that financial buffer indeed encourages workers to take riskier chances in the labor market. Given that wage and job satisfaction increase upon the job changes on average, the results imply that better financial access can improve the labor market outcome.
We document that if an analyst is covering a weak pool of overvalued firms, the best firm is rated more highly than it would be otherwise, and if the analyst is covering a strong pool of undervalued firms, the worst firm is rated worse than it would be otherwise. Dispersion in analyst forecasts are affected by these relative ratings. We next look at return implications. A stock recommended as Strong Buy (Hold/Underperform/Sell) by an analyst with a weak (strong) pool underperforms (overperforms) next month by 0.33% (0.64%) a stock recommended the same by an analyst with a strong (weak) pool.