Similar Search Results

Robust Optimal Policy in a Forward-Looking Model with Parameter and Shock Uncertainty

Giannoni, Marc P. - National Bureau of Economic Research (NBER) - 2006

uncertainty about model parameters and shock processes. We show that the robust optimal policy rule is likely to involve a … uncertainty. Thus parameter uncertainty alone does not necessarily justify a small response of monetary policy to perturbations …. However uncertainty may amplify the degree of "super-inertia" required by optimal monetary policy. We finally discuss the …

Persistent link: https://www.econbiz.de/10005084782

Private Investment and Government Protection

Luttmer, Erzo F.P.; Zeckhauser, Richard; Kousky, Carolyn - National Bureau of Economic Research (NBER) - 2006

conditions, to find the equilibrium offering the highest social welfare. There is usually considerable uncertainty about the …

Persistent link: https://www.econbiz.de/10005084856

Robustly Optimal Monetary Policy with Near Rational Expectations

Woodford, Michael - National Bureau of Economic Research (NBER) - 2005

The paper considers optimal monetary stabilization policy in a forward-looking model, when the central bank recognizes that private-sector expectations need not be precisely model-consistent, and wishes to choose a policy that will be as good as possible in the case of any beliefs that are close...

Persistent link: https://www.econbiz.de/10005085023

Denial of Death and Economic Behavior

Kopczuk, Wojciech; Slemrod, Joel - National Bureau of Economic Research (NBER) - 2005

We model denial of death and its effect on economic behavior. Attempts to reduce death anxiety and the possibility of denial of mortality-relevant information interact with intertemporal choices and may lead to time-inconsistent behavior and other "behavioral" phenomena. In the model, repression...

Persistent link: https://www.econbiz.de/10005087485

Will Job Testing Harm Minority Workers?

Autor, David; Scarborough, David - National Bureau of Economic Research (NBER) - 2004

Because minorities typically fare poorly on standardized tests, job testing is thought to pose an equity-efficiency trade-off: testing improves selection but reduces minority hiring. We develop a conceptual framework to assess when this tradeoff is likely to apply and evaluate the evidence for...

Persistent link: https://www.econbiz.de/10005019433

Adverse Selection and Switching Costs in Health Insurance Markets: When Nudging Hurts

Handel, Benjamin R. - National Bureau of Economic Research (NBER) - 2011

This paper investigates consumer switching costs in the context of health insurance markets, where adverse selection is a potential concern. Though previous work has studied these phenomena in isolation, they interact in a way that directly impacts market outcomes and consumer welfare. Our...

Persistent link: https://www.econbiz.de/10009323425

Sticking with What (Barely) Worked

Lefgren, Lars; Price, Joseph; Platt, Brennan - National Bureau of Economic Research (NBER) - 2011

Outcome bias occurs when an evaluator considers ex-post outcomes when judging whether a choice was correct, ex-ante. We formalize this cognitive bias in a simple model of distorted Bayesian updating. We then examine strategy changes made by professional football coaches. We find they are more...

Persistent link: https://www.econbiz.de/10009328107

Optimal Expectations and Limited Medical Testing: Evidence from Huntington Disease

Oster, Emily; Shoulson, Ira; Dorsey, E. Ray - National Bureau of Economic Research (NBER) - 2011

We use novel data to study the decision to undergo genetic testing by individuals at risk for Huntington disease (HD), a hereditary neurological disorder that reduces healthy life expectancy to about age 50. Although genetic testing is perfectly predictive and carries little financial or time...

Persistent link: https://www.econbiz.de/10009372445

On the Optimal Burden of Proof

Kaplow, Louis - National Bureau of Economic Research (NBER) - 2012

The burden of proof is a central feature of adjudication, and analogues exist in many other settings. It constitutes an important but largely unappreciated policy instrument that interacts with the level of enforcement effort and magnitude of sanctions in controlling harmful activity. Models are...

Persistent link: https://www.econbiz.de/10009421980

Salience in Experimental Tests of the Endowment Effect

Shleifer, Andrei; Bordalo, Pedro; Gennaioli, Nicola - National Bureau of Economic Research (NBER) - 2012

We provide a novel account of experimental evidence for the endowment effect using the salience mechanism (Bordalo, Gennaioli, and Shleifer, 2011). The two-stage procedure implemented in experiments implies that the endowed good and other goods are evaluated in different contexts. We describe...

Persistent link: https://www.econbiz.de/10009421984