Short-Term Traders, Learning and Informational Externalities, 2015

Abstract: This paper examines how short term trading impacts the aggregation of information in financial markets. I develop a model where short-term traders, in an attempt to learn about the average beliefs of future market participants, make the price relatively more noisy. This typically introduces a negative informational externality on long-term investors. I show that (i) as the horizon of the informed traders decreases, the price becomes relatively less precise; (ii) an inflow of informed traders in the market can decrease the informativeness of the price when the traders have a relatively short horizon or the market is expected to be thin in the future; (iii) finally, as rational informed short-term traders have access to an extra source of information about the future price, they end up creating more noise and a decrease in the informativeness of the price might result. Thus, paradoxically, more informed trading could lead to a less informative price.

Widows, Representation, and the (Ms.)appropriation of a Name, with Danielle Lupton (Colgate University)and Steven Schuster (Middle Tennessee State University) • October 2017

Abstract: For much of the 20th century, widowhood was the primary path for women into the U.S. Congress. Yet, little research has considered how familial connections and the name recognition widows acquire from their husbands may affect their political behavior. Drawing on insights from the literatures across American politics, comparative politics, and economics, we argue that widows in Congress will have an inherent name brand advantage, providing them more freedom to pursue their own policy agendas. Using a differences-in-differences analysis of legislative voting behavior from the 63rd to 104th Congresses, we provide evidence that widows are more liberal than their husbands and follow their own policy agendas. We also show that widows are more liberal than other women. Thus, our results indicate that widowhood embeds both the gender and the dynastic dimension of these legislators. Further evidence suggests that this difference is rooted in the brand name advantage that widows have compared to other women, highlighting the complementarity between these individuals’ dynastic identity and their gender identity.