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The Importance of Borrowers’ History on Credit Behavior: The Mexican Experience
Negrin, José L. - Econometric Society - 2004
Credit sharing information mechanisms represent the institutional answer to the asymmetric information problems inherent to credit markets. It is generally accepted that sharing information is beneficial for the participant institutions, however, there are few studies that have measured the...
Persistent link: https://www.econbiz.de/10005699572
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Can Information Heterogeneity Explain the Exchange Rate Determination Puzzle?
Wincoop, Eric van; Bacchetta, Philippe - Econometric Society - 2004
Empirical evidence shows that macroeconomic fundamentals have little explana-tory power for nominal exchange rates. On the other hand, the recent “microstruc-ture approach to exchange rates” has shown that most exchange rate volatility at short to medium horizons is related to order flows....
Persistent link: https://www.econbiz.de/10005328945
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Contracting with Risk Aversion and Subjective Beliefs Under Costly State Verification
Nielsen, Carsten Krabbe; Kurz, Mordecai - Econometric Society - 2004
We study the loan contracing problem of Gale and Hellwig (1985) under general assumptions of risk aversion and possibly diverse subjective beliefs of the borrower and lender about the income of the investment. We characterize the optimal contract and show that (i) the contractual payoff in...
Persistent link: https://www.econbiz.de/10005342338
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The No Trade Principle in General Environments
Wong, Ngai-Ching; Ng, Man-Chung - Econometric Society - 2004
The no trade principle asserts that risk-neutral agents are not prepared to trade if and only if a common prior exists. The purpose of this article is to provide general versions of this principle. We first study the case when no topological assumption is made on the state space. Bets are...
Persistent link: https://www.econbiz.de/10005342381
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HERD BEHAVIOR IN THE JAPANESE LOAN MARKET: EVIDENCE FROM BANK PANEL DATA
Nakagawa, Ryuichi; Uchida, Hirofumi - Econometric Society - 2004
This paper investigates whether Japanese banks had been following herd behavior in the domestic loan market from 1975 through 2002. Applying the technique developed by Lakonishok, Shleifer, and Vishny (LSV) (1992, J. of Fin. Econ.) to the data of loans outstanding to different types of...
Persistent link: https://www.econbiz.de/10005130235
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Herd Behavior in the Japanese Loan Market: Evidence from Bank Panel Data
Nakagawa, Ryuichi; Uchida, Hirofumi - Econometric Society - 2004
This paper investigates whether Japanese banks had been following herd behavior in the domestic loan market from 1975 through 2002. Applying the technique developed by Lakonishok, Shleifer, and Vishny (LSV) (1992, J. of Fin. Econ.) to the data of loans outstanding to different types of...
Persistent link: https://www.econbiz.de/10005702567
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Product Market Competition and Productive Managerial Effort
Cho, Sungbin - Econometric Society - 2004
This paper analyzes a mechanism through which product market competition affects allocation of the managerial efforts … reduction (productive effort) and rent protection (unproductive effort). An increase in competition, measured by the number of … identifies the conditions under which product market competition lowers the cost of providing incentives for productive effort …
Persistent link: https://www.econbiz.de/10005063759
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Why is on-net traffic cheaper than off-net traffic? Access markup as a collusive device and a barrier to entry.
Vagstad, Steinar; Gabrielsen, Tommy Staahl - Econometric Society - 2004
Received literature have shown that if competing networks are restricted to linear and uniform pricing, high access charges can facilitate collusion; a result that breaks down if we allow for non-linear and discriminatory pricing, however. We show that by adding unbalanced calling pattern to the...
Persistent link: https://www.econbiz.de/10005702527
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Media Frenzies in Markets for Financial Information
Veldkamp, Laura - Econometric Society - 2004
Promising emerging equity markets often witness investment herds and frenzies, accompanied by an abundance of media coverage. Complementarity in information acquisition can explain these anomalies. Because information has a high fixed cost of production, its equilibrium price is low when...
Persistent link: https://www.econbiz.de/10005063589
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Herding and Contrarian Behavior in Financial Markets - An Internet Experiment
Drehmann, Mathias; Oechssler, Jörg - Econometric Society - 2004
We report results of an internet experiment designed to test the theory of informational cascades in financial markets … the experiment. As predicted by theory, we find that the presence of a flexible market price prevents herding. However …
Persistent link: https://www.econbiz.de/10005170272