Research

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Here you will find links to my research in progress and my publications.  If you have comments or suggestions on my work, contact me via e-mail tony.cookson@colorado.edu.

Working Papers
A Text-Based Analysis of Corporate Innovation (wtih Gustaf Bellstam and Sanjai Bhagat)
We construct a new measure of innovation from the text of analyst reports using Latent Dirchlet Allocation.  The measure has desirable properties, and does not share the weaknesses of extant measures of innovation (R&D and patenting outcomes). 
[Link to SSRN]












Why Don't We Agree? Evidence from a Social Network of Investors
 (wtih Marina Niessner). 
Revise and Resubmit at Journal of Finance.
We develop a new measure of disagreement and evaluate the sources and consequences of disagreement.  Investment philosophies matter for sustaining disagreement, but there is scope for disagreement among investors with the same approach [Link to SSRN].








Growing Up Without Finance
 (wtih James R. Brown and Rawley Z. Heimer).
Using exogenous variation from Native American reservations, we show that less local financial development leads to worse consumer financial health.  Local financial institutions matter, and so do financial environments. [Link to SSRN]








Assortative Matching and Reputation in the Market for First Issues
(wtih Ali Hortacsu and Oktay Akkus).
We innovate a tractable, structural method to distinguish selection and treatment effects using a model of a two-sided matching market.  The certification effect of prestigious underwriters has been stable since the 1980s, but strategic underpricing related to reputation has risen dramatically.  [Link to SSRN]








Economic Consequences of Judicial Institutions: Evidence from A Natural Experiment
Well understood courts lead to greater economic activity with pronounced effects in industries that depend more on sunk costs. [Link to SSRN]












Publications and Forthcoming
When Saving is Gambling
Journal of Financial Economics. Forthcoming. [Link to SSRN] 
Financial gambles substitute for casino gambling.  When uptake matters, financial literacy is a complement - rather than a substitute - for innovative savings programs. 

Anticipated Entry and Entry Deterrence: Evidence from the American Casino Industry 
Management ScienceForthcoming. [Link to SSRN]
Shows incumbent casino firms invest in physical capacity to deter entry -- not to accommodate -- and that it is successful. 

Law and Finance Matter: Lessons from Externally Imposed Courts (with James R. Brown and Rawley Z. Heimer). 
Good court enforcement spurs credit growth, which leads to greater incomes, especially in sectors that use external finance.

Courting Economic Development (with James R. Brown and Rawley Z. Heimer) 
Judicial uncertainty brought about by particularly active courts appears responsible for substantial underdevelopment. 

Leverage and Strategic Preemption: Lessons from Entry Plans and Incumbent Investments
Excessive financial leverage hinders strategic investments to deter entry of a rival, thereby influencing the nature of competition.

The Determinants of Bank Mergers: A Revealed Preference Analysis (with Ali Hortacsu and Oktay Akkus) 
We develop a new estimator of merger valuation -- based on a two-sided matching market -- that is useful even in the case of private-to-private mergers. 

Institutions and Casinos on American Indian Reservations: An Empirical Analysis of the Location of Indian Casinos  
Indian casinos are an outcome of political bargaining between tribes and states, as well as the underlying legal institutions. 


Work in Progress and Interests
This is an incomplete list of some of the projects I am pursuing, as well as research interests I plan to develop further.  If you see potential for collaboration on something related to these ideas or my completed work above, contact me.

Projects
Hierarchies, Delegation, and Organizational Structure: Lessons from Detailed Hierarchy Data
Financial Distress and Labor Market Policies: Evidence from Casino Managers
Substitution Between Lotteries and Casino Gambling

Interests
IPO Markets, Determinants of Long Run Value, Matching and Technology
Measuring Innovation and Evaluating its Impacts
Links Between Firms and Industries, Financial Value, and Inferences for Real Activity
(Banking) Competition and its Implications for Households and Firms
Household Financial Decisions and Financial Literacy
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Notes

Labor Market Intermediation and Anonymity [pdf] 

This is an applied theory note on the role of intermediaries with particular relevance to online intermediaries in task based markets.  I believe the proof in the appendix is innovative.
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