Showing 1 - 10 of 12
The key purpose of corporate finance is to provide methods to compute the value of projects. The baseline textbook recommendation is to use the Present Value (PV) formula of expected cash flows, with a discount rate based on the CAPM. In this paper, we ask what is, empirically, the best...
Persistent link: https://www.econbiz.de/10013537790
We review the literature on multi-horizon currency risk premiums. We show how the multi-horizon implications arise from the classic present-value relationship. We further show how these implications manifest themselves in the interaction between bond and currency risk premiums. This link is...
Persistent link: https://www.econbiz.de/10014322805
The paper reviews the evidence on the macroeconomic announcement premium and its implications on equilibrium asset pricing models. Empirically, a large fraction of the equity market risk premium is realized on a small number of trading days with significant macroeconomic announcements. We review...
Persistent link: https://www.econbiz.de/10014437054
We show that the stock market price reaction to monetary policy surprises upon announcements of the Federal Open Market Committee (FOMC) is explained mostly by changes in the default-free term structure of yields, not by changes in the equity premium. We reach this conclusion based on a new...
Persistent link: https://www.econbiz.de/10015056210
Laboratory experiments find a robust relationship between decision times and perceived values of alternatives. This … paper investigates how these findings translate to experts' decision making and information acquisition in the field. In a … be chosen later than earlier; (ii) decision time is higher when the likelihood of choosing each alternative is closer to …
Persistent link: https://www.econbiz.de/10014544793
build consensus around the union's preferred policy. In an experiment that mimics individual decision-making in a collective …
Persistent link: https://www.econbiz.de/10014576648
Many, if not most, personalistic dictatorships end up with a disastrous decision such as Hitler's attack on the Soviet …. Even if the decision is not ultimately fatal for the regime, such as Mao's Big Leap Forward or the Pol Pot …-informed subordinates have no chance to prevent the decision from being implemented. We offer a dynamic model of non-democratic politics, in …
Persistent link: https://www.econbiz.de/10014250204
motivated versus altruistic preferences influence medical care decision making in the context of malaria in Kenya. We measured …
Persistent link: https://www.econbiz.de/10014486242
Jobs increasingly require good decision-making. Workers are valued not only for how much they can do, but also for … conditional on IQ, numeracy, and education, and the return to allocative skill is greater in decision-intensive occupations …
Persistent link: https://www.econbiz.de/10014372431
We develop interpretable, quantitative indices of the objective and subjective complexity of lottery choice problems that can be computed for any standard dataset. These indices capture the predicted error rate in identifying the lottery with the highest expected value, where the predictions are...
Persistent link: https://www.econbiz.de/10014372434