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Business Cycle Implications of Habit Formation

Nason, James M.; Kano, Takashi - Econometric Society - 2004

The inability of a wide array of dynamic stochastic general equilibrium (DSGE) models to generate fluctuations that resemble actual business cycles has lead to the use of habit formation in consumption. For example, habit formation has been shown to help explain the negative response of labour...

Persistent link: https://www.econbiz.de/10005130231

International capital flows and transmission of financial crises

Goenka, Aditya; Boschi, Melisso - Econometric Society - 2004

This paper proposes a model encompassing alternative views of contagion by highlighting the different channels of transmission of financial crises in an unifying framework. We study investor behaviour when they are affected by external habit formation. It is shown how international portfolio...

Persistent link: https://www.econbiz.de/10005702724

Pricing Psychology: Evidence from a Randomized Field Experiment in a Consumer Credit Market

Bertrand, Marianne; Karlan, Dean - Econometric Society - 2004

This paper tests stylized facts and theories from behavioral economics and laboratory experiments using a randomized field experiment of our design. A major South African consumer credit lender issued 60,000 scripted direct mail solicitations where several marketing â€œtreatmentsâ€ were...

Persistent link: https://www.econbiz.de/10005702606

Identifying Information Asymmetries: New Methods and Evidence from a Randomized Field Experiment

Karlan, Dean; Zinman, Jonathan - Econometric Society - 2004

This paper estimates the prevalence of asymmetric information in a consumer credit market using a field experiment of our design. A major South African lender issued 60,000 direct mail offers where the interest rate was randomized along two different dimensions â€” an initial â€œoffer...

Persistent link: https://www.econbiz.de/10005702665

School Choice, Incentives, and Academic Outcomes: Evidence from Chile

Gallego, Francisco A. - Econometric Society - 2004

This paper examines the effects of inter-school competition on student outcomes by using exogenous variation in the availability of private schools in Chile. Given that naïve estimates of the effects of competition on student outcomes are biased by endogenous entry of schools, this paper uses...

Persistent link: https://www.econbiz.de/10005328880

Coordination, Specialization and Incentives: An Equilibrium Model of Firm Boundaries

Mathewson, Frank; Horstmann, Ignatius J. - Econometric Society - 2004

incentives for multiple agents to undertake efficient levels of the separate activities. The ability of various mechanisms to … provide incentives and the way that this ability is affected by information and agent numbers will determine both which …'s perspective -- but also by the ability of the coordination mechanism to provide incentives for efficient activity levels as …

Persistent link: https://www.econbiz.de/10005328943

The Effect of the Payroll Tax on Earnings: A Test of Competing Models of Wage Determination

Lang, Kevin - Econometric Society - 2004

Under the standard competitive model, if a tax change affects a group of workers with highly inelastic labor supply, their earnings will fall by essentially the entire nominal employer share of the tax increase. Allowing the wage to play a motivational role but maintaining the market-clearing...

Persistent link: https://www.econbiz.de/10005328957

”Can They Take it With Them? The Portability of Star Knowledge Workers' Performance: Myth or Reality?”

Groysberg, Boris; Nanda, Ashish - Econometric Society - 2004

This paper examines the portability of star security analysts’ performance. Analysis from a panel data set of research analysts in investment banks over 1988-1996 reveals that star analysts who switch employers show an immediate decline in performance, which persists for at least five years....

Persistent link: https://www.econbiz.de/10005329003

Evaluating Incentive Options

Xiong, Wei; Sircar, Ronnie - Econometric Society - 2004

cost, exercising strategies, and induced incentives. Especially, we highlight some significant interactions among different …

Persistent link: https://www.econbiz.de/10005329033

Contracting with altruistic agents under moral hazard

AUBERT, Cecile - Econometric Society - 2004

In principal-agent settings with moral hazard, the fact that agents are altruistic vis-a-vis third parties (e.g. their family) modifies incentive costs. We derive sufficient conditions for the principal to benefit from altruism. They bear on how altruism affects the agent's marginal rate of...

Persistent link: https://www.econbiz.de/10005342252