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Investment, Externalities & Industry Dynamics.
Roy, Santanu; Kamihigashi, Takashi - Econometric Society - 2004
We provide an alternative theoretical explanation for a number of empirical regularities relating to the dynamics of industry structrure (product life cycle) and changes in size and age distribution of firms over time. We explain why entry may continue over a considerable period of time, why...
Persistent link: https://www.econbiz.de/10005130186
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Banks and Capital Inflows
Fontenla, Matias - Econometric Society - 2004
This paper examines the effects that capital inflows have on the financial system in a Diamond-Dybvig environment. Here, an adverse-selection problem arises where short-term capital has the incentive to enter the domestic banking system while long-term capital chooses to stay out. Then,...
Persistent link: https://www.econbiz.de/10005328911
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Network Investment and Competition with Access-to-Bypass
Hori, Keiichi; Mizuno, Keizo - Econometric Society - 2004
This paper examines firms' incentive to make irreversible investments under an open access policy with stochastically growing demand. Using a simple model, we derive an access-to-bypass equilibrium. Analysis of the equilibrium confirms that the introduction of competition in network industries...
Persistent link: https://www.econbiz.de/10005063618
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Financial Intermediation, Moral Hazard, And Pareto Inferior Trade
Hansen, B.O.; Keiding, H. - Econometric Society - 2004
A simple two-country model of international trade under uncertainty is considered, where investors choose uncertain projects depending on interest rates, with high rates leading to risky projects. If investment is financed by bond markets, there can be asymmetric equilibria which can be Pareto...
Persistent link: https://www.econbiz.de/10005699607
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Intertemporal Consumption and Consumer Demand
McLaren, Keith R.; Kim, H. Youn; Cooper, Russel J. - Econometric Society - 2004
This paper integrates two strands of studies on consumer demand and consumption and provides a unified framework for analyzing consumer behavior employing an intertemporal two-stage budgeting procedure. We take a modified AIDS framework for the demand system and derive a general Euler equation...
Persistent link: https://www.econbiz.de/10005702544
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A Dynamic Approach to Estimate the Efficiency of U.S. Electric Utilities
Rungsuriyawiboon, Supawat - Econometric Society - 2004
The static production efficiency model and the dynamic duality model of intertemporal decision making using a parametric approach have been continuously developed but in separate direction. The parametric approach takes statistical noise into account, which consequently provides accurate...
Persistent link: https://www.econbiz.de/10005702577
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Competitive Equilibria and the Core of Exchange Economies under Asymmetric Information
Clippel, Geoffroy de - Econometric Society - 2004
I argue in favor of a competitive screening approach for studying the question of coalition formation in exchange economies under asymmetric information. I obtain a new notion of core that refines Wilson (1978)'s coarse core. It is nonempty under the standard regularity conditions. I also...
Persistent link: https://www.econbiz.de/10005130196
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The value of information with heterogeneous agents and partially revealing prices
Hatchondo, Juan - Econometric Society - 2004
different attitudes towards risk: wealthy individuals are 'de facto' less risk averse than poor individuals. The first ones can … presence of heterogeneous beliefs. In equilibrium, the dispersion in beliefs introduces an adverse effect: risk-taking agents … arrival of more precise information has therefore a double effect: it weakens the adverse effect on trade (as risk …
Persistent link: https://www.econbiz.de/10005342254
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The Role of Risk Aversion in Predicting Individual Behaviour
Paiella, Monica; Guiso, Luigi - Econometric Society - 2004
consistent with theory. We also use this indicator to address the importance of self-selection when relating indicators of risk …We use household survey data to construct a direct measure of absolute risk aversion based on the maximum price a … consumer is willing to pay to buy a risky asset. We relate this measure to a set of consumers' decisions that in theory should …
Persistent link: https://www.econbiz.de/10005328916
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Homogeneous Actions and Hetergeneous Beliefs: Experimental Evidence on the Formation of Information Cascades
Hung, Angela; Dominitz, Jeff - Econometric Society - 2004
studies have focused on one implication of cascade theory--the realization of cascades. Yet the prediction of the model is …
Persistent link: https://www.econbiz.de/10005328950