Research

Working Papers

“Coase in the Coal Fields? Historical Property Rights and Technology Adoption in Appalachia" (Job Market Paper) 

Abstract: The Coase Theorem suggests that the initial assignment of property rights should not affect resource allocations if property rights are clearly defined and transaction costs are sufficiently low. In this paper, I test a natural application of the Coase Theorem in the Appalachian coal fields of the eastern United States, where a technological shock led to variation in the court-assigned property rights of surface property owners and mineral owners. I use a spatial regression discontinuity design across state borders to study whether the initial court assignment of property rights affected technology adoption, resource allocations, and long-run socioeconomic outcomes in the region. I find that weaker surface property rights led to 3.5 times greater exposure to surface mining and higher levels of historical coal production, despite similarity in the underlying coal characteristics. In the long-run, I find that weaker surface property rights led to 31% lower residential property values today---decades after the legal variation in property rights assignments were overturned. These results suggest that even temporary shocks to property rights institutions can have negative impacts on long-run outcomes.

Selected Works in Progress

“Property Rights and Access to Credit: Evidence from Post-apartheid South Africa" (Draft Coming Soon) 

Abstract: Weak property rights can serve as a barrier to accessing formal credit systems in developing countries by limiting households' ability to use their properties as collateral. In South Africa, many urban and peri urban residential properties remain in the ownership of local municipalities because nonwhite residents were not permitted ownership of these properties under the apartheid regime. Since 2012, a nonprofit titling program has been facilitating the transfer of properties from municipality ownership into the ownership of residents who previously only had occupation rights to these properties. This paper uses the staggered treatment timing of the titling program to examine the effect of title deeds on property values, property transactions, and access to formal credit using individuals' credit histories from one of the major credit bureaus in South Africa and household survey data. Preliminary results suggest that receipt of title deeds significantly increases property values and the likelihood that a household has a current loan using their title deed as collateral. 

“The Environmental and Economic Effects of Mountaintop Removal Mining in Central Appalachia” (with W. Ben Chenault)

Abstract: Natural resource extraction can dramatically alter landscapes, affecting local hydrology and flood risk. Mountaintop Removal Mining (MTR) is an invasive form of coal mining, having altered 1.2 million acres of land and buried more than 2,000 miles of streams. MTR mining uses explosives to loosen topsoil and bedrock lying above the coal seams. This removed material, "overburden", is displaced to fill adjacent valleys which dramatically alters local topography. We explore how changes in landscapes created by MTR influence flooding in nearby watersheds. We use remotely-sensed data on MTR operations and flooding events in Central Appalachia between 2000 and 2018, exploiting variation in mining activity across space and time. We consider welfare implications using data on property values. 

“Low-Cost Access to Bankruptcy” (with Stephanie Ben-Ishai, Zachary Irving, Sheisha Kulkarni, and Avantika Prabhakar)

Pre-analysis Plan Coming Soon! Pilot in Progress.

Abstract: By relieving individuals from crippling debt, bankruptcy has been shown to increase homeownership, annual earnings, employment, and promote the creation of new businesses. In addition to improving filers’ future financial outcomes, bankruptcy may also improve psychological wellbeing by relieving financial stress. However, despite the benefits that insolvency offers, many low-income debtors lack access to bankruptcy due to costs, technological barriers, and stigma. We conduct, to our knowledge, the first Randomized Controlled Trial (RCT) to examine whether lowering the financial barriers to insolvency improves access to this important financial institution for low-income debtors. We will use our RCT to achieve three aims: 1) Estimate a demand curve for bankruptcy and use this curve to estimate the effects of bankruptcy reforms on economic welfare, 2) determine the effects of low-cost bankruptcy on long-term credit and financial outcomes, 3) test whether bankruptcy alleviates the psychological effects of poverty on mental health, life satisfaction, and moment-to-moment experience and happiness. In partnership with a licensed insolvency trustee (LIT) in Canada, we randomly subsidize potential filers with $1,000 toward bankruptcy or consumer proposal filing fees. A separate treatment arm will offer debtors a surprise subsidy after they have decided to file so that we can separately identify income effects from the economic effect of lowering the financial barrier to access bankruptcy. We also use moment-to-moment experience sampling and sub-clinical questionnaires to track participants’ stream of consciousness and mental health throughout the filing process, to determine whether debt relief improves wellbeing by relieving financial stress. 

“Steering in Bargaining Models: Evidence from Bankruptcy Filings” (with Jenna Blochowicz)

Abstract: The insolvency process in Canada provides consumers with two alternatives: traditional bankruptcy or consumer proposal in which the filer's debt obligation is negotiated and settled with creditors by a Licensed Insolvency Trustee (LIT). Regardless of the option selected, consumers must meet with an LIT whose role is to assist individuals in choosing the best option for their financial situation in addition to helping them through the filing process. However, LITs have an incentive to steer individuals towards consumer proposals as they are paid a percentage of the remaining debt amount after bargaining with creditors as opposed to a flat fee for bankruptcy filings. This payment structure can also create an incentive for LITs to negotiate smaller reductions in the final debt amount paid to creditors. Using data on the universe of consumer bankruptcy and consumer proposal filings for the past ten years in Canada, we use a structural bargaining model to estimate the extent to which LITs may be steering consumers toward filing consumer proposals and/or negotiating smaller reductions in debt settlements. Using this model, we also examine whether spatial restrictions in competition affect steering and bargaining outcomes and estimate the welfare effect of removing spatial restrictions in the Canadian insolvency market.