Showing 1 - 10 of 13
This research develops an evolutionary growth theory that captures the intricate time path of life expectancy in the … process of development, shedding new light on the origin of the remarkable rise in life expectancy since the Agricultural … hunter-gatherer tribes to sedentary agricultural communities and ultimately to urban societies affected the nature of the …
Persistent link: https://www.econbiz.de/10005125645
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
This chapter examines the process of development from an epoch of Malthusian stagnation to a state of sustained … economic growth. The analysis focuses on recently advanced unified growth theories that capture the intricate evolution of … income per capita, technology, and population over the course of human history. Deciphering the underlying forces that …
Persistent link: https://www.econbiz.de/10005062763
This chapter examines the process of development from an epoch of Malthusian stagnation to a state of sustained … economic growth. The analysis focuses on recently advanced unified growth theories that capture the intricate evolution of … income per capita, technology, and population over the entire course of human history. The inconsistency of non …
Persistent link: https://www.econbiz.de/10005556052
I explore a behavioral model of political participation, first introduced by Quattrone and Tversky [1988], based on the … primitives of prospect theory, as defined by Kahneman and Tversky [1979]. The model offers an alternative explanation for why the … President’s party tends to lose seats in midterm congressional elections. The model is examined empirically and compared against …
Persistent link: https://www.econbiz.de/10005076611
This paper presents an insight into the theoretical and empirical literature of Loss Aversion and Endowment Effect. The … implies a radical change in some of the basic standard postulates of microeconomic foundation. These concepts robustly predict … standard assumptions of transitivity and reversibility of preferences under the neoclassical theory of consumer choice. Twenty …
Persistent link: https://www.econbiz.de/10005077088
models of hedging: (i) a firm that chooses its hedging policy in the presence of bankruptcy costs; (ii) an all equity firm …This paper characterizes optimal currency hedging in several models of downside risk. We consider, in turn, three … contrary to conventional wisdom, we show that forwards dominate options as hedges of downside risk. …
Persistent link: https://www.econbiz.de/10005134928
The Nash equilibrium solution concept for games is based on the assumption of expected utility maximization. Reference … dependent utility functions (in which utility is determined not only by an outcome, but also by the relationship of the outcome … important element of such utility functions. We extend games to include loss aversion characteristics of the players. We define …
Persistent link: https://www.econbiz.de/10005407600
effort provision. This renders explicit tests of the neoclassical theory of labor supply difŽ cult. Here we present evidence … how much to work. Despite the favorable environment, the results cast doubt on the neoclassical model. They are, however …, consistent with a model of reference-dependent preferences exhibiting loss aversion and diminishing sensitivity. …
Persistent link: https://www.econbiz.de/10005561054
, analyzing the effect of differing levels of loss aversion on bargaining outcomes. We find that as with risk aversion, increasing … loss aversion for a player leads to worse outcomes for that player in bargaining situations. An extension of Nash's axioms … endogenize the reference points into the model and find a unique solution giving reference points and outcomes that satisfy two …
Persistent link: https://www.econbiz.de/10005118620