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-expected utility theory. Our framework allows us to study irreversible investment projects whose value has a time-variable volatility …
Persistent link: https://www.econbiz.de/10012471511
The following paper discusses the analysis of some types of economic time series using an altered time scale, or … operational time. It is argued that for some series, observations that are ordinarily thought of as equidistant in time are … actually irregularly spaced in a more natural time scale. Section A discusses point or impulse sampling of related series and …
Persistent link: https://www.econbiz.de/10012479094
International risk-sharing has far-reaching implications both for economic policy and for basic research in economics. When countries do not share risk, individuals in those countries experience fluctuations in their consumption levels that are undesirable and possibly unnecessary. This paper...
Persistent link: https://www.econbiz.de/10012461868
An ongoing debate sets capital budgeting against market timing. The primary difficulty in evaluating these theories is finding distinct exogenous proxies for investment opportunities and mispricing. We use demand shifts induced by demographics to address this problem, and hence, provide a more...
Persistent link: https://www.econbiz.de/10012463465
In public sector procurement, social welfare often depends on the time taken to complete the contract. A leading … departments have introduced innovative contracting methods based on scoring auctions that give contractors explicit time …
Persistent link: https://www.econbiz.de/10012463793
. The imperfect information is endogenized using a variant of the theory of "rational inattention" proposed by Sims (1998 …
Persistent link: https://www.econbiz.de/10012464027
We examine the timing of firms' operations in a formal model of labor demand. Merging a variety of data sets from Portugal from 1995-2004, we describe temporal patterns of firms' demand for labor and estimate production-functions and relative labor-demand equations. The results demonstrate the...
Persistent link: https://www.econbiz.de/10012464082
Policymaking for posterity involves current decisions with distant consequences. Contrary to conventional prescriptions, we conclude that the greater wealth of future generations may strengthen the case for preserving environmental amenities; lower discount rates should be applied to the far...
Persistent link: https://www.econbiz.de/10012464288
identify exogenous determinants of timing. We develop a theory illustrating conditions under which synchronicity will vary and … identify three factors -- the amount of daylight, the timing of television programming, and differences in time zones -- that … can alter timing. Using the American Time Use Survey for 2003 and 2004, we first show that an exogenous shock to time in …
Persistent link: https://www.econbiz.de/10012466315
This paper studies the optimal timing of unemployment insurance subsidies in a McCall search model. Risk-averse workers sequentially sample random job opportunities. Our model distinguishes unemployment subsidies from consumption during unemployment by allowing workers to save and borrow freely....
Persistent link: https://www.econbiz.de/10012466438