This paper attempts to find out the explanatory power of observed changes in the distribution of current income in explaining the relative change in aggregate consumption using the distributional approach of aggregation by Hildenbrand and Kneip (1999, 2001). The coefficients in the aggregate...

Trades in DAX index options with identical maturities cluster around particular classes of strike prices. For example, options with strikes ending on 50 are less traded than options with strikes ending on 00. Clustering is higher when options with close strike prices are good substitutes. The...

Keynesian theory suggests that a reduction in government expenditure has a negative effect on private demand and therefore on output. Contrary, neoclassical theory argues that reduced public expenditure makes room for an expansion of the private sector and thus has a stimulating effect on the...

To improve the detection of the economic ”danger zones” from which severe banking crises emanate, this paper introduces classification tree ensembles to the banking crisis forecasting literature. I show that their out-of-sample performance in forecasting binary banking crisis indicators...

We report a new method for Experimenting over a Long Distance (ELD) allowing to simultaneously run decentralized interactive experiments in geographically separated subject pools. We apply ELD to an intercultural trust experiment with participants from Argentina, China and Germany.

Pro-life advocates focus on a single entity, the foetus. Pro-choice advocates focus on another single entity, the pregnant mother. There should also be a third focus, on all people already born on how a new entrant on average damages (or enhances) the whole community. Communal accounts are...

Government spending shocks are frequently identified in quarterly time-series data by ruling outa contemporaneous response of government spending to other macroeconomic aggregates. We provide evidence that this assumption may not be too restrictive for U.S. annual time-series data. -- Government...