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Other-Regarding Preferences in General Equilibrium

Dufwenberg, Martin; Heidhues, Paul; Kirchsteiger, Georg; … - C.E.P.R. Discussion Papers - 2008

We study competitive market outcomes in economies where agents have other-regarding preferences. We identify a separability condition on monotone preferences that is necessary and sufficient for one's own demand to be independent of the allocations and characteristics of other agents in the...

Persistent link: https://www.econbiz.de/10005114265

Information Acquisition and Portfolio Performance

Guiso, Luigi; Jappelli, Tullio - C.E.P.R. Discussion Papers - 2006

Rational investors perceive correctly the value of financial information. Investment in information is therefore rewarded with a higher Sharpe ratio. Overconfident investors overstate the quality of their own information, and thus attain a lower Sharpe ratio. We contrast the implications of the...

Persistent link: https://www.econbiz.de/10005123525

Learning Temporal Preferences

Miravete, Eugenio J; Palacios-Huerta, Ignacio - C.E.P.R. Discussion Papers - 2002

We analyse households’ responses to an unanticipated change in consumption opportunities and evaluate their implications for the nature and formation of preferences. We study the tariff experiment conducted by South Central Bell where local telephone measured tariffs were introduced for the...

Persistent link: https://www.econbiz.de/10005498107

Time Variation in Term Premia: International Evidence

Jongen, Ron; Verschoor, Willem F C; Wolff, Christian C - C.E.P.R. Discussion Papers - 2005

This paper examines the validity of the expectations hypothesis of the term structure of interest rates by means of a previously unexploited dataset of market expectations that covers a broad range of EMS versus non-EMS foreign currency deposits. Although we find strong evidence in favour of...

Persistent link: https://www.econbiz.de/10005504713

Internal Rationality and Asset Prices

Adam, Klaus; Marcet, Albert - C.E.P.R. Discussion Papers - 2009

heterogeneity and incomplete markets. We show how knowledge about dividends and optimal behavior alone fail to fully inform agents … with internal rationality. We also show that equilibrium prices depend on expectations of the discounted price and dividend … after making very strong assumptions about agents' knowledge and prove extremely sensitive to the details about agents …

Persistent link: https://www.econbiz.de/10008577809

Opportunistic Political Cycles: Test in a Young Democracy Setting

Akhmedov, Akhmed; Ravitchev, Alexei; Zhuravskaya, Ekaterina - C.E.P.R. Discussion Papers - 2003

sizable and short-lived on average; (2) the magnitude of opportunistic cycles decreases with voters' rationality and awareness … incumbent governors. Our results confirm that maturity of democracy as well as rationality and awareness of the electorate are …

Persistent link: https://www.econbiz.de/10005662200

Properties of Optimal Forecasts

Patton, Andrew J; Timmermann, Allan G - C.E.P.R. Discussion Papers - 2003

Evaluation of forecast optimality in economics and finance has almost exclusively been conducted under the assumption of mean squared error loss. Under this loss function optimal forecasts should be unbiased and forecast errors serially uncorrelated at the single-period horizon with increasing...

Persistent link: https://www.econbiz.de/10005661998

Forbidden Fruits: The Political Economy of Science, Religion, and Growth

Bénabou, Roland; Ticchi, Davide; Vindigni, Andrea - C.E.P.R. Discussion Papers - 2015

knowledge. Three long-term outcomes emerge. First, a "Secularization" or "Western-European" regime with declining religiosity …, unimpeded science, a passive Church and high levels of taxes and transfers. Second, a "Theocratic" regime with knowledge …

Persistent link: https://www.econbiz.de/10011262883

The Impact of Trade on Organization and Productivity

Caliendo, Lorenzo; Rossi-Hansberg, Esteban - C.E.P.R. Discussion Papers - 2011

mechanism, we develop a theory of an economy where firms with heterogeneous demands use labor and knowledge to produce …. Entrepreneurs decide the number of layers of management and the knowledge and span of control of each agent. As a result, in the …

Persistent link: https://www.econbiz.de/10009246600

Spatial Agglomeration Dynamics

Quah, Danny - C.E.P.R. Discussion Papers - 2002

This Paper develops a model of economic growth and activity locating endogenously on a 3-dimensional featureless global geography. The same economic forces influence simultaneously growth, convergence, and spatial agglomeration and clustering. Economic activity is not concentrated on discrete...

Persistent link: https://www.econbiz.de/10005136721