Narrow search
Showing 1 - 10 of 397
Cover Image
Bailout Uncertainty in a Microfounded General Equilibrium Model of the Financial System
Cukierman, Alex; Izhakian, Yehuda - C.E.P.R. Discussion Papers - 2011
, ultimate lenders and financial intermediaries. The model is used to investigate the impact of uncertainty about the likelihood … between risk and uncertainty is implemented by applying the Gilboa-Schmeidler maxmin with multiple priors framework to lenders … include: (i) An unanticipated increase in bailout uncertainty raises interest rates, the volume of defaults in both the real …
Persistent link: https://www.econbiz.de/10009144737
Cover Image
To Charge or Not to Charge: Evidence from a Health Products Experiment in Uganda
Fischer, Greg; Karlan, Dean S.; McConnell, Margaret; … - C.E.P.R. Discussion Papers - 2014
model combining the learning aspect of experience goods with reference-dependent preferences, we setup a field experiment in …
Persistent link: https://www.econbiz.de/10011083717
Cover Image
Loss Aversion and Consumption Choice: Theory and Experimental Evidence
Karle, Heiko; Kirchsteiger, Georg; Peitz, Martin - C.E.P.R. Discussion Papers - 2012
In this paper we analyze a consumer choice model with price uncertainty, loss aversion, and expectation-based reference … points. The implications of this model are tested in an experiment in which participants have to make a consumption choice …
Persistent link: https://www.econbiz.de/10011084678
Cover Image
Asset Pricing under Rational Learning about Rare Disasters
Koulovatianos, Christos; Wieland, Volker - C.E.P.R. Discussion Papers - 2011
This paper proposes a new approach for modeling investor fear after rare disasters. The key element is to take into account that investors' information about fundamentals driving rare downward jumps in the dividend process is not perfect. Bayesian learning implies that beliefs about the...
Persistent link: https://www.econbiz.de/10009201120
Cover Image
Cognitive Ability and Paternalism
Saint-Paul, Gilles - C.E.P.R. Discussion Papers - 2002
This Paper analyses the welfare effects of price restrictions on private contracting in a world where agents have a limited cognitive ability. People compute the costs and benefits of entering a transaction with an error. The government knows the distribution of true costs and benefits as well...
Persistent link: https://www.econbiz.de/10005662402
Cover Image
An Economic Analysis of Exclusion Restrictions for Instrumental Variable Estimation
den Berg, Gerard J van - C.E.P.R. Discussion Papers - 2007
Instrumental variable estimation requires untestable exclusion restrictions. With policy effects on individual outcomes, there is typically a time interval between the moment the agent realizes that he may be exposed to the policy and the actual exposure or the announcement of the actual...
Persistent link: https://www.econbiz.de/10005792073
Cover Image
The role of intuition and reasoning in driving aversion to risk and ambiguity
Butler, Jeff; Guiso, Luigi; Jappelli, Tullio - C.E.P.R. Discussion Papers - 2011
Using a large sample of retail investors as well as experimental data we find that risk and ambiguity aversion are positively correlated. We show the common link is decision style: intuitive thinkers tolerate more risk and ambiguity than effortful reasoners. One interpretation is that intuitive...
Persistent link: https://www.econbiz.de/10008915807
Cover Image
Manipulating Reliance on Intuition Reduces Risk and Ambiguity Aversion.
Butler, Jeff; Guiso, Luigi; Jappelli, Tullio - C.E.P.R. Discussion Papers - 2013
Prior research suggests that those who rely on intuition rather than effortful reasoning when making decisions are less averse to risk and ambiguity. The evidence is largely correlational, however, leaving open the question of the direction of causality. In this paper, we present experimental...
Persistent link: https://www.econbiz.de/10011083555
Cover Image
Perceiving Prospects Properly
Steiner, Jakub; Stewart, Colin - C.E.P.R. Discussion Papers - 2014
features with prospect theory, namely, overweighting of small probability events (and corresponding underweighting of high …
Persistent link: https://www.econbiz.de/10011083577
Cover Image
Banker Compensation and Confirmation Bias
Sabourian, Hamid; Sibert, Anne - C.E.P.R. Discussion Papers - 2009
Confirmation bias refers to cognitive errors that bias one towards one's own prior beliefs. A vast empirical literature documents its existence and psychologists identify it as one of the most problematic aspects of human reasoning. In this paper, we present three related scenarios where...
Persistent link: https://www.econbiz.de/10005661569