On 1 March 2018, President Trump declared a 25% tariff on certain steel imports by invoking Section 232 of the 1962 Trade Expansion Act. The tariff pitted two of America’s most storied and interconnected industries, steel and auto producers, against one another and made allies out of longtime bitter political opponents on Capitol Hill. Later that same year, President Trump doubled down on the steel tariff when he initiated a Section 232 investigation on auto and auto parts imports. The auto industry blasted the proposal, while steel offered its strong support. This paper examines the congressional response to President Trump’s proposed auto tariff. Specifically, we explain why 159 MCs signed a letter opposing the tariff. After controlling for other factors, such as district interests and campaign contributions, we find that ideology matters more than party affiliation on whether legislators signed the auto letter. We also find the second dimension of the DW-NOMINATE score to matter, suggesting the strong presence of intra-party cleavages. Our findings highlight the complex nature of trade policy as a domain of bipartisan agreement amidst broader political polarization and at a time when traditional party platforms on the issue are rapidly changing.

We identify a new mechanism of opportunistic insider trading linked to attention-driven mispricing. Insiders are more likely to sell their company’s stock during periods of heightened retail attention and more inclined to buy when attention diminishes. The results are particularly pronounced for lottery-type stocks and firms with substantial retail ownership. We demonstrate that our findings—which relate to indicators of mispricing, retail order imbalances, and Robinhood herding episodes—extend to seasoned equity issuances and cannot be solely explained by firm fundamentals. Attention-based insider trading is less likely to result in SEC enforcement actions and persists across different regulatory regimes.

We document spillover effects of government policies promoting capital investment on household financial choices and wealth accumulation. Using individual-level data on employment outcomes and household balance sheets, we find that increase in accelerated depreciation limits increases the layoff probability of routine workers and reduces their stock share of liquid wealth relative to non-routine workers. Background risk due to the policy is mitigated when workers have access to generous unemployment insurance benefits. Finally, we show that such portfolio rebalancing adversely impacts investment returns and the wealth accumulation of routine workers.

The present study focuses on the Charismatic, Ideological, and Pragmatic Theory of leadership, examining how sensemaking mitigates follower reactions after unethical leader behavior. We examine the impact of ethical misconduct type on follower outcomes, specifically whether CIP leaders are able to justify unethical behavior to maintain follower attitudes toward the leader. Participants assumed the role of an employee for a fictional oil and gas exploration company, encountering the company’s C, I, or P chief executive officer (CEO) through a video-taped speech discussing the state and vision of the organization. Participants read ethical misconduct related to “people” or ethical misconduct related to “tasks or resources” by the organization’s CEO. Finally, participants were provided (or not provided) a video-taped justification of the ethical misconduct. A three-way interaction revealed the impact of ethical misconduct type is key to leader sensemaking. Implications are discussed.

Leadership emergence is fraught with pervasive gender stereotypes, and women remain underrepresented in senior leadership roles, particularly in healthcare organisations. We apply ecological systems theory to explain how environmental factors enable or inhibit women’s leadership emergence in healthcare settings. We interviewed 17 senior female leaders in the Australian healthcare sector to explore how gender-related perceptions affected their leadership journeys. Five themes emerged that challenge existing narratives: men supported women’s advancement; women impeded other women’s progress; vulnerability was a leadership strength; ambitious women were ostracised; and women were ‘given’ leadership opportunities rather than actively pursuing them. By situating these findings within the ecological systems theory framework, we highlight the interplay of individual and contextual influences across ecosystem levels. Our study offers a novel perspective on gender stereotypes in leadership emergence, advancing ecological systems theory by extending it into a new field. We provide recommendations at individual, organisational, community, and societal levels to empower women leaders.

We investigate whether firm-level political connections affect the allocation of exemptions from tariffs imposed on $US 550 billion of Chinese goods imported to the United States annually beginning in 2018. Evidence points to politicians not only rewarding supporters but also punishing opponents: Past campaign contributions to the party controlling (in opposition to) the executive branch increase (decrease) approval likelihood. Our findings point to quid pro quo arrangements between politicians and firms, as opposed to the “information” channel linking political access to regulatory outcomes.

Conventional benefit–cost analysis is well-established and widely used to assess interventions designed to improve public health and welfare. While it has many advantages, it has well-known limitations. Chief among these is its inattention to the distributional equity of the impacts. To measure individual well-being, the conventional approach relies on individuals’ willingness to exchange their own income for the outcomes they experience. To measure societal welfare, it relies on simple aggregation of these values across individuals. This approach reflects a relatively narrow conception of welfare and ignores how impacts are distributed across advantaged and disadvantaged individuals. Social welfare analysis has been proposed as an alternative approach to address these limitations, but real-world applications are rare due largely to the complexity of the calculations. This article provides a pragmatic approach for conducting equity-sensitive benefit–cost analysis globally that addresses data limitations and other challenges, illustrated with example applications. It formally develops and implements equity weights that adjust for the decreasing marginal value of money and for additional moral considerations, prioritizing increases in welfare for those who are worse off.

Patient navigation (PN) is increasingly used to help people overcome barriers to accessing health care. In a recent trial, PN was added to motivational interviewing (MI) to help patients discharged from detoxification (detox) transition to follow-up care. The goal was to test whether PN in addition to MI increased transition rates and reduced subsequent readmissions into detox compared with MI alone. Results demonstrated little evidence of a treatment effect on either of these two outcomes, but post hoc exploratory analyses showed that patients who received PN were less likely to be arrested in the year following discharge than patients who did not receive PN. In addition, the group that received PN had fewer multiple arrests resulting in a lower average number of arrests per person. These findings are hypothesis-generating and need replication for conclusive inference. Nevertheless, economic analysis indicates that PN after detox could be a cost-beneficial intervention to reduce arrests among a population at high risk for involvement in the criminal justice system.

We show non-financial corporations changed the quantity and composition of their bond issues in response to the European Central Bank’s corporate quantitative easing program. Eligible issuers shifted toward bonds meeting the program’s eligibility requirements. Moreover, demand for credit risk increased, and risk premia in the bond market dropped after the announcement. Eligible and ineligible firms increased total issuance and shifted toward bonds with riskier characteristics, namely unsecured and non-guaranteed bonds. Total issuance increased the most among those firms that were most exposed to the decline in risk premia. Firms also shifted away from short-maturity instruments and issued more fixed-coupon bonds.

Antitrust policy aims to reduce market concentration and increase competition among firms. Contemporary antitrust is sensitive to both domestic and international considerations. Internationally, the market is dominated by the largest firms, raising questions about the competitiveness of domestic firms and the application of antitrust against foreign firms. Domestically, public support for antitrust is needed for continued enforcement. This paper examines how international markets shape public support for antitrust in the United States. Using media analysis, we find that antitrust is increasingly in the news, and that international competition is referenced in antitrust debates. We theorize that support for antitrust is shaped by concerns for the competitiveness of domestic firms, relative to foreign competition, and that these concerns vary based on individuals’ levels of nationalism. We test our theory using a survey experiment and find that individuals are especially concerned with being placed at a disadvantage relative to foreign competitors. Interestingly, we find that using antitrust laws against foreign firms yields divergent reactions—highly nationalistic Americans increase their support for strong antitrust laws, while those with low levels of nationalism decrease support. The paper highlights the importance of global competition in shaping preferences for domestic regulation.

We examine whether location within a dense regional cluster of interconnected businesses affected firm performance during the Great Recession and the subsequent recovery. Firms in denser regional clusters experienced faster sales growth than their rivals in less dense clusters, especially firms operating in more competitive industries and those more able to reap agglomeration benefits. They also faced lower uncertainty, invested more in both physical capital and intangible capital, and maintained higher employment growth. Their greater resiliency and agility led to significant increases in their valuations. These results suggest that regional clusters provide competitive advantages during turbulent times.

We propose a consumption-based model to explain puzzling unstable (i.e., sometimes positive and sometimes negative) relations between stock market variance with both stock market risk premia and prices. In the model, market risk premia depend positively (negatively) on fear (euphoria) variance. Market prices, which decrease with discount rates, correlate negatively (positively) with fear (euphoria) variance. Because it is the sum of fear and euphoria variances, the market variance may correlate positively or negatively with expected returns and prices, depending on the relative importance of the two variances. Our empirical results support the model’s key assumptions and many novel implications.

Using high-frequency data on over 7 million import transactions, we study the disruptions to U.S. firms’ trade patterns and growth immediately following the initial COVID-19 trade shock. While large firms were not direct recipients of government fiscal support, they experienced fewer disruptions when located in counties where small businesses (SMEs) received government stimulus loans under the Paycheck Protection Program. These effects were largest in counties with greater share of SMEs and stronger input–output linkages between large firms and SMEs. Our results point to local spillovers between SMEs and large firms as being an important determinant of firm resiliency during crises.