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• Case | HBS Case Collection | 2013 (Revised from original 2013 version)

  Greylock Partners

  Felda Hardymon, Tom Nicholas and David Lane

  Citation:

  Hardymon, Felda, Tom Nicholas, and David Lane. "Greylock Partners." Harvard Business School Case 813-002, April 2013. (Revised from original January 2013 version.)

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• Article | Journal of Economic Perspectives | Spring 2013

  The Investment Strategies of Sovereign Wealth Funds

  Shai Bernstein, Josh Lerner and Antoinette Schoar

  This paper examines the direct private equity investment strategies across sovereign wealth funds (SWFs) and their relationship to the funds' organizational structures. SWFs seem to engage in a form of trend chasing, since they are more likely to invest at home when domestic equity prices are higher and invest abroad when foreign prices are higher. Funds see the industry P/E ratios of their home investments drop in the year after the investment, while they have a positive change in the year after their investments abroad. SWFs where politicians are involved have a much greater likelihood of investing at home than those where external managers are involved. At the same time, SWFs with external managers tend to invest in lower P/E industries, which see an increase in the P/E ratios in the year after the investment. By way of contrast, funds with politicians involved invest in higher P/E industries, which have a negative valuation change in the year after the investment.

  Citation:

  Bernstein, Shai, Josh Lerner, and Antoinette Schoar. "The Investment Strategies of Sovereign Wealth Funds." Journal of Economic Perspectives 27, no. 2 (Spring 2013): 219–238.

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• Working Paper | 2013

  How Elastic Are Preferences for Redistribution? Evidence from Randomized Survey Experiments

  Ilyana Kuziemko, Michael I. Norton, Emmanuel Saez and Stefanie Stantcheva

  This paper analyzes the effects of information about inequality and taxes on preferences for redistribution using randomized online surveys on Amazon Mechanical Turk (mTurk). About 5,000 respondents were randomized into treatments providing interactive information on U.S. income inequality, the link between top income tax rates and economic growth, and the estate tax. We find that the informational treatment has very large effects on whether respondents view inequality as an important problem. By contrast, we find quantitatively small effects of the treatment on views about policy and redistribution: support for taxing the rich increases slightly, support for transfers to the poor does not, especially among those with lower incomes and education. An exception is the estate tax — we find that informing respondents that it affects only the very richest families has an extremely large positive effect on estate tax support, even increasing respondents' willingness to write to their U.S. senator about the issue. We also find that the treatment substantially decreases trust in government, potentially mitigating respondents' willingness to translate concerns about inequality into government action. Methodologically, we explore different strategies to lower attrition in online survey platforms and show our main results are robust across methods. A small follow-up survey one month later reveals that our results persist over time. Finally, we compare mTurk with other survey vendors and provide suggestions to future researchers considering this platform.

  Citation:

  Kuziemko, Ilyana, Michael I. Norton, Emmanuel Saez, and Stefanie Stantcheva. "How Elastic Are Preferences for Redistribution? Evidence from Randomized Survey Experiments." NBER Working Paper Series, No. 18865, March 2013.

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