Proxy structural vector autoregressions (SVARs)identify structural shocks in vector autoregressions (VARs) with external proxy variables that are correlated with the structural shocks of interest but uncorrelated with other structural shocks. We provide asymptotic theory for proxy SVARs when the...

Abstract: This paper deals with a special vehicle routing problem with backhauls where each customer receives items from a depot and, at the same time, returns items back to the depot. Moreover, time windows are assumed and three-dimensional loading constraints are to be observed, i.e. the items...

Knowledge is still considered to be power and its externalization makes it possible for others to use that power. In this paper, we examine the theory of brainstorming, and the claim by father Alex Osborn that in a group session an individual can think of twice as many ideas than working alone....

Should managers be liable for ill-conceived business decisions? One answer is given by U.S. courts, which almost never hold managers liable for their mistakes. In this paper, we address the question in a theoretical model of delegated decision making. We find that courts should indeed be lenient...

The booms and busts in U.S. stock prices over the post-war period can to a large extent be explained by fluctuations in investors' subjective capital gains expectations. Survey measures of these expectations display excessive optimism at market peaks and excessive pessimism at market throughs....

Building on the idea that religious communities provide mutual insurance against some idiosyncratic risks, we argue that religious membership is more valuable in societies exposed to greater common risk. In our empirical analysis we exploit rainfall risk as a source of common economic risk in...