Sloan School of Managementhttp://hdl.handle.net/1721.1/17772017-06-18T12:58:57Z2017-06-18T12:58:57ZA new binary integer program for the restricted container relocation problemGalle, VirgileBarnhart, CynthiaJaillet, Patrickhttp://hdl.handle.net/1721.1/1099782017-06-17T06:18:18Z2017-06-16T00:00:00ZA new binary integer program for the restricted container relocation problem
Galle, Virgile; Barnhart, Cynthia; Jaillet, Patrick
The Container Relocation Problem (CRP), also called Block Relocation Problem (BRP), is concerned with finding a sequence of moves of containers that minimizes the number of relocations needed to retrieve all containers, while respecting a given order of retrieval. The restricted CRP enforces that only containers blocking the target container can be relocated. We improve upon and enhance an existing binary encoding and using it, formulate the restricted CRP as a binary integer programming problem in which we exploit structural properties of the optimal solution. This integer programming formulation reduces significantly the number of variables and constraints compared to existing formulations. Its efficiency is shown through computational results on small and medium sized instances taken from the literature.
Submitted to EJOR June 2017
2017-06-16T00:00:00ZFinancial decisions of householdsJambulapati, Vikramhttp://hdl.handle.net/1721.1/1096892017-06-07T06:18:32Z2017-01-01T00:00:00ZFinancial decisions of households
Jambulapati, Vikram
Left-digit bias refers to the tendency of individuals to focus attention on the leftmost digit of numerical information when making decisions. This paper tests for the existence of left-digit bias in the consumer credit card market. Using a regression-discontinuity design, I find sharp increases in credit card repayments around $1,000 monthly balance thresholds. The estimated effect, an approximately $20 increase in repayment, translates to about 4.35 percent of the average payment. However, I find smaller effects on future repayment behavior and the amount of future purchases. Finally, I find the effect to be stronger in higher self-reported income groups..
Thesis: S.M. in Management Research, Massachusetts Institute of Technology, Sloan School of Management, 2017.; Cataloged from PDF version of thesis.; Includes bibliographical references (pages 22-23).
2017-01-01T00:00:00ZThree essays on entrepreneurial qualityGuzmán, Jorge (Jorge Arturo)http://hdl.handle.net/1721.1/1096622017-06-07T06:17:55Z2017-01-01T00:00:00ZThree essays on entrepreneurial quality
Guzmán, Jorge (Jorge Arturo)
This dissertation introduces a new method to measure entrepreneurial quality and applies it to three questions of theoretical interest in entrepreneurship. The dissertation is presented in five chapters. Chapter 1 is an introductory chapter. It overviews the entrepreneurial quality approach, indicates the key choices made in this dissertation, and explains how researchers can build on this approach for their own applications. Chapters 2 through 4 are specific research applications. Chapter 2 uses this approach to measure the "state of American entrepreneurship" once quality is included. Chapter 3 studies differences in the quality of entrepreneurship by gender and the gender gap in VC financing conditional on quality. Chapter 4 looks at entrepreneurial migration and the quantity and quality of migrants in high growth entrepreneurship across regions. Chapter 5 provides a short conclusion. Extended abstracts are provided at the beginning of each chapter.
Thesis: Ph. D., Massachusetts Institute of Technology, Sloan School of Management, February 2017.; "February 2017." Cataloged from PDF version of thesis.; Includes bibliographical references.
2017-01-01T00:00:00ZEssays in financial economicsDou, Winston Weihttp://hdl.handle.net/1721.1/1096612017-06-07T06:17:54Z2017-01-01T00:00:00ZEssays in financial economics
Dou, Winston Wei
This thesis consists of three essays that theoretically and empirically investigate the asset pricing and macroeconomic implications of uncertainty shocks, propose new measures for model robustness, explain the joint dynamics on equity excess returns and real exchange rates. In the first chapter, I show that the effect of uncertainty shocks on asset prices and macroeconomic dynamics depends on the degree of risk sharing in the economy and the origin of uncertainty. I develop a general equilibrium model with imperfect risk sharing and two sources of uncertainty shocks: (i) cash-flow uncertainty shocks, which affect the idiosyncratic volatility of firms' productivity, and (ii) growth uncertainty shocks, which affect the idiosyncratic variability of firms' investment opportunities. My model deviates from the neoclassical setting in one respect: firms' investment policies are set by the experts who are subject to a moral hazard problem and thus must maintain an non-diversified ownership stake in the firm. As a result, risk sharing between experts and other investors is imperfect. Limited risk sharing distorts equilibrium investment choices, firm valuation, and prices of risk in equilibrium relative to the frictionless benchmark. In the calibrated model, the risk premium on growth uncertainty shocks is negative under poor risk sharing conditions and positive otherwise. Moreover, the cross-sectional spread in valuations between value and growth stocks loads positively on the growth uncertainty shocks under poor risk sharing conditions and negatively otherwise. Empirical tests support these predictions of the model. The second chapter is based on the joint work Chen, Dou, and Kogan (2015), in which we propose a new quantitative measure of model fragility, based on the tendency of a model to over-fit the data in sample with poor out-of-sample performance. We formally show that structural economic models are fragile when the cross-equation restrictions they impose on the baseline statistical model appear excessively informative about combinations of model parameters that are otherwise difficult to estimate. We develop an analytically tractable asymptotic approximation to our fragility measure which we use to identify the problematic parameter combinations. Using these asymptotic results, we diagnose fragility in asset pricing models with rare disasters and long-run consumption risk. The third chapter is based on the joint work Dou and Verdelhan (2015), which presents a two-good, two-country real model that replicates the basic stylized facts on equity excess returns and real interest rates. In the model, markets are incomplete. In each country, workers cannot participate in financial markets whereas investors trade domestic and foreign stocks, as well as an international bond. The investors' asset positions are subject to a borrowing constraint, along with a short-selling constraint on equity. Foreign and domestic agents differ in their elasticity of inter temporal substitution and in their risk-aversion. A time-varying probability of a global disaster implies time-varying risk premia in asset markets, and therefore large and time-varying expected valuation effects on international asset positions. The model highlights the role of market incompleteness and heterogeneity across countries in accounting for the volatility of equity and debt international capital flows.
Thesis: Ph. D., Massachusetts Institute of Technology, Sloan School of Management, 2017.; Cataloged from PDF version of thesis.; Includes bibliographical references (pages 361-383).
2017-01-01T00:00:00Z