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Trader Anonymity, Price Formation and Liquidity

Theissen, Erik - 2002

the probability that a trader trades on the basis of private information. He uses this knowledge to price discriminate …

Persistent link: https://www.econbiz.de/10010263065

Policy Risk and the Business Cycle

Born, Benjamin; Peifer, Johannes - 2011

The argument that policy risk, i.e. uncertainty about monetary and fiscal policy, has been holding back the economic recovery in the U.S. during the Great Recession has a large popular appeal. We analyze the role of policy risk in explaining business cycle fluctuations by using an estimated New...

Persistent link: https://www.econbiz.de/10010293363

Bilateral Trade, Openness and Asset Holdings

Peter, Alexandra - 2010

This paper analyzes the relationship between bilateral trade flows, trade openness, and asset holdings in a three-country stochastic general equilibrium model. The threecountry model set-up enables me to disentangle and separate the effects bilateral trade flows and trade openness have on...

Persistent link: https://www.econbiz.de/10010293364

Externalities in Recruiting

Kräkel, Matthias; Lammers, Frauke; Szech, Nora - 2011

According to the previous literature on hiring, ?rms face a trade-off when deciding on external recruiting: From an incentive perspective, external recruiting is harmful since admission of external candidates reduces internal workers’ career incentives. However, if external workers have high...

Persistent link: https://www.econbiz.de/10010293365

Information Disclosure in Innovation Contests

Rieck, Thomas - 2010

information. We analyze an innovation contest in which research firms have a stochastic technology to develop innovations at a … fixed cost, but their progress is publicly announced. We make a comparison with the case of no information revelation: if …. Additionally, we show that firms may voluntarily reveal their information. …

Persistent link: https://www.econbiz.de/10010293366

Randomization in contracts with endogenous information

Terstiege, Stefan - 2011

I consider a situation, where the agent can acquire payoff-relevant information either before or after the contract is … signed. To raise efficiency, the principal might solicit information; to retain all surplus, however, she must prevent … precontractual information gathering. The following class of stochastic contracts may solve this trade-off optimally: before signing …

Persistent link: https://www.econbiz.de/10010293370

The effect of policyholders' rationality on unit-linked life insurance contracts with surrender guarantees

Li, Jing; Szimayer, Alexander - 2010

We study the valuation of unit-linked life insurance contracts with surrender guarantees. Instead of solving an optimal stopping problem, we propose a more realistic approach accounting for policyholders’ rationality in exercising their surrender option. The valuation is conducted at the...

Persistent link: https://www.econbiz.de/10010293371

Moment characterization of higher-order risk preferences

Ebert, Sebastian - 2010

It is often said that prudence and temperance play key roles in aversion to negative skewness and kurtosis, respectively. This paper puts a new perspective on these relationships and presents a characterization of higher-order risk preferences in terms of statistical moments. An implication is,...

Persistent link: https://www.econbiz.de/10010293372

Wage floors and optimal job design

Kragl, Jenny; Schöttner, Anja - 2011

We analyze the effects of lower bounds on wages, e.g., minimum wages or liability limits, on job design within firms. In our model, two tasks contribute to non-veriable firm value and affect an imperfect performance measure. The tasks can be assigned to either one or two agents. In the absence...

Persistent link: https://www.econbiz.de/10010293373

On the Solution of Markov-switching Rational Expectations Models

Carravetta, Francesco; Sorge, Marco M. - 2011

This paper describes a method for solving a class of forward-looking Markov-switching Rational Expectations models under noisy measurement, by specifying the unobservable expectations component as a general-measurable function of the observable states of the system, to be determined optimally...

Persistent link: https://www.econbiz.de/10010293377