Showing 1 - 10 of 135
Early research on the returns to higher education treated the postsecondary system as a monolith. In reality, postsecondary education in the United States and around the world is highly differentiated, with a variety of options that differ by credential (associates degree, bachelor's degree,...
Persistent link: https://www.econbiz.de/10013191028
Price surges often generate social disapproval and requests for regulation and price controls, but these interventions may cause inefficiencies and shortages. To study how individuals perceive and reason about sudden price increases for different products under different policy regimes, we...
Persistent link: https://www.econbiz.de/10013191058
This paper implements a liquidity measure, "Liquidity Mismatch Index (LMI)," to gauge the mismatch between the market liquidity of assets and the funding liquidity of liabilities. We construct the LMIs for 2882 bank holding companies during 2002-2014 and investigate the time-series and...
Persistent link: https://www.econbiz.de/10012455951
People's perceptions about others play an important role in shaping their own attitudes and behaviors, as well as social norms more broadly. This review presents a meta-analysis of the recent empirical literature that examines perceptions about others in the field. We document a number of...
Persistent link: https://www.econbiz.de/10012616616
What can explain the large changes in aggregate demand that occur in the absence of any seemingly corresponding shock to the underlying state variables of the economy? We show that macroeconomic volatility can arise from dispersions of beliefs among agents. These dispersions give rise to bets...
Persistent link: https://www.econbiz.de/10012482631
The question of whether and how mutual fund managers provide valuable services for their clients motivates one of the largest literatures in finance. One candidate explanation is that funds process information about future asset values and use that information to invest in high-valued assets....
Persistent link: https://www.econbiz.de/10012463199
We study the implications of a particular form of irrationality on the pricing behavior of firms in a monopolistic-competitive market with incomplete information. We assume that firms are overconfident, meaning that they over-estimate their abilities to understand the correct model of the...
Persistent link: https://www.econbiz.de/10012466749
We study an ambiguity-averse agent with uncertainty about income dynamics who chooses what aspects of the income process to learn about. The agent chooses to learn most about income dynamics at the very lowest frequencies, which have the greatest effect on utility. Deviations of consumption from...
Persistent link: https://www.econbiz.de/10012453797
This paper provides an explanation for situations in which the state variables describing the economy do not change, but aggregate consumption experiences significant changes. We present a theory of pseudo-wealth--individuals' perceived wealth that is derived from heterogeneous beliefs and...
Persistent link: https://www.econbiz.de/10012455842
This paper shows that accounting for variation in mistakes can be crucial for welfare analysis. Focusing on consumer underreaction to not-fully-salient sales taxes, we show theoretically that the efficiency costs of taxation are amplified by differences in underreaction across individuals and...
Persistent link: https://www.econbiz.de/10012456134