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Discounting, Patience, and Dynamic Decision Making
Quah, John; Strulovici, Bruno - Department of Economics, Oxford University - 2011
Whether they are financial, economic, or psychological, discount rates affect most economic decisions: investment and savings, hirings and firings, defaults and refinancing, financial and economic reforms, learning and experimentation, and any other decision with long-term consequences, such as...
Persistent link: https://www.econbiz.de/10009144004
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Product market efficiency: The bright side of myopic, uninformed, and passive external finance
Noe, Thomas H.; Rebello, Michael J. - Department of Economics, Oxford University - 2008
We show that introducing an external capital market with information asymmetry into a product market model reduces opportunistic substitution of sub-standard goods and encourages producers to concentrate on long-run reputation building.  We test this result with a laboratory experiment.  We...
Persistent link: https://www.econbiz.de/10011004366
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Strategic Hedging and Investment Efficiency
Raposo, Clara - Department of Economics, Oxford University - 1998
This paper links real investment policy to corporate risk management, endogenizing the costs of external financing … risk management equilibrium. Results are derived under a constraint of no-distress at the time of the investment decision … contract utilized to manage risk, and new investors. Depending on the bargaining solution, the firm may still prefer to not …
Persistent link: https://www.econbiz.de/10010661425
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Risk Pooling, Commitment, and Information: An experimental test of two fundamental assumptions
Barr, Abigail - Department of Economics, Oxford University - 2003
information that underpin current models of risk pooling. A specially designed economic experiment involving 678 subjects across … attempts to conduct such tests. I find that more extrinsic commitment is associated with more risk pooling, but that more … information is associated with less risk pooling. The first of these results accords with our expectations and assumptions. The …
Persistent link: https://www.econbiz.de/10010604858
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KEEPING UP WITH THE JONESES AND UNEMPLOYMENT RISK.
Toche, P. - Department of Economics, Oxford University - 2001
face uninsurable labour income risk. Idiosyncratic uncertainty about future labour income reduces the marginal propensity …
Persistent link: https://www.econbiz.de/10005047927
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CHOICES BETWEEN SIMPLE AND COMPOUND LOTTERIES: EXPERIMENTAL EVIDENCE AND NEURAL NETWORK MODELLING.
Zizzo, D.J. - Department of Economics, Oxford University - 2001
An experiment on choices between single and compound lotteries is presented, and results are calibrated with neural network models. Many subjects tend to average out probabilities, though behaviour becomes more rational with more exposure to compound lotteries in the practice stage. The Prior...
Persistent link: https://www.econbiz.de/10005047948
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Multinational Ownership and Subsidiary Investment
Mayer, Colin; Carlin, Wendy - Department of Economics, Oxford University - 2008
This paper examines how foreign ownership affects the investment decisions of subsidiary firms using a new dataset of listed-parent - listed-subsidiary pairs.  We find that improvements in the investment opportunities of parent firms have a negative effect on the investment of their...
Persistent link: https://www.econbiz.de/10011004467
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Does China overinvest? Evidence from a panel of Chinese firms
Knight, John; Ding, Sai; Guariglia, Alessandra - Department of Economics, Oxford University - 2010
This paper addresses the hotly-debated question: do Chinese firms overinvest?  A firm-level dataset of 100,000 firms over the period of 2000-07 is employed for this purpose.  We initially calculate measures of investment efficiency, which is typically negatively associated with...
Persistent link: https://www.econbiz.de/10008763475
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Martingale unobserved component models
Shephard, Neil - Department of Economics, Oxford University - 2013
I discuss models which allow the local level model, which rationalised exponentially weighted moving averages, to have a time-varying signal/noise ratio.  I call this a martingale component model.  This makes the rate of discounting of data local.  I show how to handle such models...
Persistent link: https://www.econbiz.de/10011004138
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Abrupt Positive Feedback and the Social Cost of Carbon
Ploeg, Rick Van der - Department of Economics, Oxford University - 2013
Optimal climate policy should act in a precautionary fashion to deal with tipping points that occur at some future random moment. The optimal carbon tax should include an additional component on top of the conventional present discounted value of marginal global warming damages. This component...
Persistent link: https://www.econbiz.de/10011004146