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This paper collects most recent developments in the emerging economic sub-area Economics of Religion. According to secularization thesis, the importance of beliefs and religious activities should weaken as education, scientific knowledge and economic welfare increases. That hypothesis has been...
Persistent link: https://www.econbiz.de/10005118941
The Nash equilibrium solution concept for games is based on the assumption of expected utility maximization. Reference … two types of loss-aversion equilibrium, a solution concept endogenizing reference points. The two types reflect different … types of updating of reference points during the game. In equilibrium, reference points emerge as expressions of …
Persistent link: https://www.econbiz.de/10005407600
Evolutionary arguments are often used to justify the fundamental behavioral postulates of competive equilibrium … these claims in an evolutionary general equilibrium model. If the economic environment were held constant, profitable firms … would grow and unprofitable firms would shrink. In the general equilibrium model, prices change as factor demands and output …
Persistent link: https://www.econbiz.de/10005062752
as large as the collection of competitive equilibrium allocations. We confirm this for a standard model featuring land … assumed by a government that ploughs back rent (at least in excess of its agricultural value) to its citizens, the equilibrium …
Persistent link: https://www.econbiz.de/10005560986
We develop a definition of equilibrium for agenda formation in general voting settings. The definition is independent … of any protocol. We show that the set of equilibrium outcomes for any Pareto efficient voting rule is uniquely determined … elimination (or amendment), the set of equilibrium outcomes corresponds with the Banks set. We also examine the implications in …
Persistent link: https://www.econbiz.de/10005135124
, business entity, association etc., tries to attain equilibrium between these two components of wealth. True equilibrium is a … rare phenomenon. As one approaches the true equilibrium state one gets more active economically. Deficit budgetting helps a … nation approach equilibrium state and there by increases economic activity. …
Persistent link: https://www.econbiz.de/10005135130
In 1928 Cobb and Douglas (C&D) presented a system analysis which established the first empirically identified production model, which forms the foundation for Solow's growth theory and research into productivity growth factors, such as 'technological progress ' and 'human capital development '....
Persistent link: https://www.econbiz.de/10005119096
Reliability has been largely applied to industrial systems in order to study the various possibilities of systems’ failure. The goal is to establish the chain of events leading to any system’s failure, namely the top event. Looking for the minimal paths leading to any system’s fault allows...
Persistent link: https://www.econbiz.de/10005407916
In this paper we compare market prices of credit default swaps with model prices. We show that a simple reduced form model with a constant recovery rate outperforms the market practice of directly comparing bonds' credit spreads to default swap premiums. We find that the model works well for...
Persistent link: https://www.econbiz.de/10005413092
A family of credit risk models is proposed to capture three salient features of Latin American (LA) Sovereign Bond Markets: individual Long Range Dependence in volatility---Long Memory (LM)---, high fractional comovement and time varying risk premia. Evidence in favor of LM is uncovered and the...
Persistent link: https://www.econbiz.de/10005556268