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Dragana Cvijanovic’s recent interdisciplinary research has explored public health and climate finance implications on the real estate market investments. In this video, Cvijanovic describes a recent paper in which she and her co-authors, studying CEO compensation in real estate, use variation in real estate prices to study CEO pay for luck. The authors empirically disentangle pay for luck from pay for action, and show that CEOs are rewarded for taking value enhancing actions in response to luck.
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