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Uncertainty and leveraged Lucas Trees: the cross section of equilibrium volatility risk premia
Vedolin, Andrea - London School of Economics (LSE) - 2012
orchard with heterogeneous beliefs, stochastic macro-economic uncertainty, and default risk. I study two manifestations of … uncertainty, namely (i) agents’ disagreement and (ii) time-varying volatility of fundamental growth rates. The paper shows that … moments of the risk premium distribution. Together with uncertainty, default risk associated with levered trees implies a non …
Persistent link: https://www.econbiz.de/10010745732
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Environmental prices, uncertainty and learning
Dietz, Simon; Fankhauser, Samuel - London School of Economics (LSE) - 2009
uncertainty not just about individual parameters but about the structure of the problem and how to model it. A further …
Persistent link: https://www.econbiz.de/10010884522
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Environmental prices, uncertainty, and learning
Dietz, Simon; Fankhauser, Samuel - London School of Economics (LSE) - 2010
uncertainty not just about individual parameters but about the structure of the problem and how to model it. A further …
Persistent link: https://www.econbiz.de/10011126224
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High impact, low probability? An empirical analysis of risk in the economics of climate change
Dietz, Simon - London School of Economics (LSE) - 2009
To what extent does economic analysis of climate change depend on low-probability, high-impact events? This question has received a great deal of attention lately, with the contention increasingly made that climate damage could be so large that societal willingness to pay to avoid extreme...
Persistent link: https://www.econbiz.de/10010746080
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Fluctuations in uncertainty
Bloom, Nicholas - London School of Economics (LSE) - 2013
This review article tries to answer four questions: (i) what are the stylized facts about uncertainty over time; (ii …) why does uncertainty vary; (iii) do fluctuations in uncertainty matter; and (iv) did higher uncertainty worsen the Great … Recession of 2007-2009? On the first question both macro and micro uncertainty appears to rise sharply in recessions. On the …
Persistent link: https://www.econbiz.de/10011126328
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Costly bargaining and renegotiation
Anderlini, Luca; Felli, Leonardo - London School of Economics (LSE) - 1998
We identify the inefficiencies that arise when negotiation between two parties takes place in the presence of transaction costs. First, for some values of these costs it is efficient to reach an agreement but the unique equilibrium outcome is one in which agreement is never reached. Secondly,...
Persistent link: https://www.econbiz.de/10010928645
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Coordinating tasks in M-form and U-form organisations
Qian, Yingyi; Roland, Gerard; Xu, Cheng-Gang - London School of Economics (LSE) - 2003
We model the coordination of specialised tasks inside an organisation as "attribute matching". Using this method, we compare the performance of organisational forms (M-form and U-form) in implementing changes such as innovation and reform. In our framework, organisational forms affect the...
Persistent link: https://www.econbiz.de/10010928762
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Hierarchic contracting
Sanchez, Miguel A.; Hortala-Vallve, Rafael - London School of Economics (LSE) - 2005
We analyze the contracting structure in a moral hazard setting with several agents where output is produced jointly and is the only contractible variable. Since the salary of each agent is a function of all agents efforts, a positive externality arises between them. This externality is not...
Persistent link: https://www.econbiz.de/10010928768
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Transaction costs and the robustness of the Coase Theorem
Anderlini, Luca; Felli, Leonardo - London School of Economics (LSE) - 2000
This paper explores the extent to which the presence of ex-ante transaction costs may lead to failures of the Coase Theorem. In particular we identify and investigate the basic ‘hold-up problem’ which arises whenever the parties to a Coasian negotiation have to pay some ex-ante costs for the...
Persistent link: https://www.econbiz.de/10010745037
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Costly coasian contracts
Anderlini, Luca; Felli, Leonardo - London School of Economics (LSE) - 1998
We identify and investigate the basic ‘hold-up problem’ which arises whenever each party to a contract has to pay some ex-ante cost for the contract to become feasible. We then proceed to show that, under plausible circumstances, a ‘contractual solution’ to this hold-up problem is not...
Persistent link: https://www.econbiz.de/10010745370