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Fund Managers, Career Concerns, and Asset Price Volatility
Guerrieri, Veronica; Kondor, Péter - C.E.P.R. Discussion Papers - 2011
We propose a model of delegated portfolio management with career concerns. Investors hire fund managers to invest their capital either in risky bonds or in riskless assets. Some managers have superior information on the default risk. Looking at the past performance, investors update beliefs on...
Persistent link: https://www.econbiz.de/10009144726
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Groupthink: Collective Delusions in Organizations and Markets
Bénabou, Roland - C.E.P.R. Discussion Papers - 2009
I develop a model of (individually rational) collective reality denial in groups, organizations and markets. Whether participants' tendencies toward wishful thinking reinforce or dampen each other is shown to hinge on a simple and novel mechanism. When an agent can expect to benefit from other's...
Persistent link: https://www.econbiz.de/10005666620
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The Social Cost of Near-Rational Investment
Hassan, Tarek; Mertens, Thomas M. - C.E.P.R. Discussion Papers - 2014
We show that the stock market may fail to aggregate information even if it appears to be efficient and that the resulting decrease in the information content of stock prices may drastically reduce welfare. We solve a macroeconomic model in which information about fundamentals is dispersed and...
Persistent link: https://www.econbiz.de/10011083430
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Cheap Talk with Multiple Audiences: an Experimental Analysis
Battaglini, Marco; Makarov, Uliana - C.E.P.R. Discussion Papers - 2010
We examine strategic information transmission in a controlled laboratory experiment of a cheap talk game with one …
Persistent link: https://www.econbiz.de/10008784698
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Information Gatekeepers: Theory and Experimental Evidence
Brocas, Isabelle; Carrillo, Juan D; Palfrey, Thomas R - C.E.P.R. Discussion Papers - 2009
%). They occur in both directions, with more over-sampling (39%) than under-sampling (8%). The main difference with the theory … theory, with adversaries sampling more when their own cost is low and when the other adversary's cost is high. Finally, there … is little evidence of learning over the 40 matches of the experiment. …
Persistent link: https://www.econbiz.de/10008528540
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Capital Taxation under Political Constraints
Scheuer, Florian; Wolitzky, Alexander - C.E.P.R. Discussion Papers - 2015
This paper studies optimal dynamic tax policy under the threat of political reform. A policy will be reformed ex post if a large enough political coalition supports reform; thus, sustainable policies are those that will continue to attract enough political support in the future. We find that...
Persistent link: https://www.econbiz.de/10011168909
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Inattentive Consumers
Reis, Ricardo - C.E.P.R. Discussion Papers - 2005
This paper studies the consumption decisions of agents who face costs of acquiring, absorbing and processing information. These consumers rationally choose to only sporadically update their information and re-compute their optimal consumption plans. In between updating dates, they remain...
Persistent link: https://www.econbiz.de/10005124420
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Return Intentions of Migrants: Theory and Evidence
Dustmann, Christian - C.E.P.R. Discussion Papers - 1994
where consumption takes place. Some hypotheses implied by the theory are empirically tested, using micro data on migrant … workers in Germany. The results of the econometric analysis are largely consistent with the implications of the theory. …
Persistent link: https://www.econbiz.de/10005067398
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Expanding Credit Access: Using Randomized Supply Decisions to Estimate the Impacts
Karlan, Dean S.; Zinman, Jonathan - C.E.P.R. Discussion Papers - 2007
overborrow. We estimate the impacts of a consumer credit supply expansion using a field experiment and follow-up data collection …
Persistent link: https://www.econbiz.de/10005114273
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Cutting out the Middleman: Crowdinvesting, Efficiency, and Inequality
Grüner, Hans Peter; Siemroth, Christoph - C.E.P.R. Discussion Papers - 2015
We show that direct investments by consumers without the use of financial intermediaries can efficiently allocate financial capital to firms seeking funding for production of a novel consumption good. In our setting, consumers are also investors, and their privately known consumption preferences...
Persistent link: https://www.econbiz.de/10011201361