Lehman Brothers

Tom  Nicholas; David  Chen

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Case | HBS Case Collection | February 2010 (Revised September 2011)

Lehman Brothers

by Tom Nicholas and David Chen

Abstract

In 2008, the U.S. financial system was in a state of crisis and Lehman Brothers went from a major Wall Street investment bank to an insolvent institution. It was a swift end for a firm that had its beginnings over 150 years prior. What would be the firm's legacy? And how, if at all, had its activities changed the course of American history?

Keywords: History; Business History; Development Economics; Business Exit or Shutdown; Investment Banking; Insolvency and Bankruptcy; Economic Growth; Financial Crisis; Financial Services Industry; United States;

Format: Print

21 pages

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Citation:

Nicholas, Tom, and David Chen. "Lehman Brothers." Harvard Business School Case 810-106, February 2010. (Revised September 2011.)

About the Author

Tom Nicholas

William J. Abernathy Professor of Business Administration

Entrepreneurial Management

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Case | HBS Case Collection | September 2018

The Gender Gap In U.S. History

Tom Nicholas and Sophie Kainen

Citation:
Nicholas, Tom, and Sophie Kainen. "The Gender Gap In U.S. History." Harvard Business School Case 819-051, September 2018. View Details

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Working Paper | 2018

Taxation and Innovation in the 20th Century

Ufuk Akcigit, John Grigsby, Tom Nicholas and Stefanie Stantcheva

This paper studies the effect of corporate and personal taxes on innovation in the United States over the twentieth century. We use three new datasets: a panel of the universe of inventors who patent since 1920; a dataset of the employment, location and patents of firms active in R&D since 1921; and a historical state-level corporate tax database since 1900, which we link to an existing database on state-level personal income taxes. Our analysis focuses on the impact of taxes on individual inventors and firms (the micro level) and on states over time (the macro level). We propose several identification strategies, all of which yield consistent results: i) OLS with fixed effects, including inventor and state-times-year fixed effects, which make use of differences between tax brackets within a state-year cell and which absorb heterogeneity and contemporaneous changes in economic conditions; ii) an instrumental variable approach, which predicts changes in an individual or firm's total tax rate with changes in the federal tax rate only; iii) a border county strategy, which exploits tax variation across neighboring counties in different states. We find that taxes matter for innovation: higher personal and corporate income taxes negatively affect the quantity, quality, and location of inventive activity at the macro and micro levels. At the macro level, cross-state spillovers or business-stealing from one state to another are important, but do not account for all of the effect. Agglomeration effects from local innovation clusters tend to weaken responsiveness to taxation. Corporate inventors respond more strongly to taxes than their non-corporate counterparts.

Citation:
Akcigit, Ufuk, John Grigsby, Tom Nicholas, and Stefanie Stantcheva. "Taxation and Innovation in the 20th Century." NBER Working Paper Series, No. 24982, September 2018. View Details

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Case | HBS Case Collection | April 2018

Revitalizing the Cherokee Nation Health System

Tom Nicholas and Ross Bloom

Keywords: Native Americans; healthcare industry; Health Care and Treatment; Health Industry;

Citation:
Nicholas, Tom, and Ross Bloom. "Revitalizing the Cherokee Nation Health System." Harvard Business School Case 818-123, April 2018. View Details

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Lehman Brothers

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