Richard Paul Richman Professor of Business, Columbia Business School
New Papers: What Happens When a Firm Changes Its Relational Contract?
A relational contract is a long-term understanding between a firm and its employees that describes how employees should behave and how the firm will reward the expected behavior. How can a firm change its relational contract and what happens when it tries to? We analyze a large US company, which is transitioning to Lean Management. The study involves randomizing the timing of the Lean rollout across different sites.
This short article discusses the experimental design and some preliminary results. This working paper shows that the change in relational contract affects the way employees respond to the introduction of a new management practice (ranking drivers according to their performance).
Posted: June 21, 2015
New Paper: Central Bank Transparency and Computational Linguistics
How transparent should central bank deliberations be? We combine latent Dirichlet allocation and career concerns theory to understand whether increased disclosure at the Fed led to more informed decision-making.
The word cloud below represents one of the 50 deliberation topics we identify. My coauthor Stephen Hansen has an excellent hands-on tutorial on topic modeling for economists.
Posted: October 25, 2014
New Paper: Managerial Attention and Worker Engagement
When is a management system credible? Employees are more productive if they believe their efforts are monitored and rewarded. We analyze the dynamic game between the workforce and the management and we show that it can give rise to persistent productivity differences between otherwise similar firms.
Full text: CEPR Discussion Paper 10035.
Posted: October 23, 2014
New Paper: Measuring Media Power
I develop a way of measuring how much media groups can influence electoral outcomes. According to the index, the four most powerful media companies in the US are television-based conglomerates. The high index values I find reflect the fact that most voters receive their news from a small number of news sources.
Posted: August 25, 2014
New Paper: Time Use of Family CEOs and Professional CEOs
Do family CEOs behave differently than professional CEOs? And does it matter for firm performance? We tackle this issue by analyzing the behavior of over 1100 CEOs in six countries.
Posted: May 25, 2014
New Article: The Political Economy of Housing Supply
Real estate prices increase when housing supply is artificially restricted. We identify a vicious circle between house prices and zoning laws, and suggests policies that would make housing more affordable.
Full text: AEJ Micro
Posted: March 15, 2014