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An Equilibrium Theory of Nominal Exchange Rates
Hagedorn, Marcus - 2021
This paper proposes an equilibrium theory of nominal exchange rates, which offers a new perspective on various issues … features of this theory are that the nominal exchange rate is determined in international financial markets, that the risk … from the nominal exchange rate. In terms of policy, this novel theory implies that a country with an exchange rate peg and …
Persistent link: https://www.econbiz.de/10013212261
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Justifying the Lindahl solution as an outcome of fair cooperation
Buchholz, Wolfgang; Peters, Wolfgang - 2005
The Lindahl equilibrium is mostly motivated by a rather artificial price mechanism. Even though the analogy to a competitive market has been emphasised by Lindahl himself his approach does not directly explain the normative ideas, which are behind this concept. In the present paper we therefore...
Persistent link: https://www.econbiz.de/10010261328
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Adding geography to the new economic geography
Bosker, E. Maarten; Brakman, Steven; Garretsen, Harry; … - 2007
For reasons of analytical tractability, new economic geography (NEG) models treat geography in a very simple way: attention is either confined to a simple 2-region or to an equidistant multi-region world. As a result, the main predictions regarding the impact of e.g. diminishing trade costs are...
Persistent link: https://www.econbiz.de/10010271844
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International antitrust enforcement and multi-market contact
Choi, Jay Pil; Gerlach, Heiko A. - 2009
This paper analyzes international antitrust enforcement when multinational firms operate in several markets with antitrust authorities in each market. We are concerned with how the sustainability of collusion in one local market is affected by the existence of collusion in other markets when...
Persistent link: https://www.econbiz.de/10010274002
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Even small trade costs restore efficiency in tax competition
Becker, Johannes; Runkel, Marco - 2010
We introduce transport cost of trade in products into the classical Zodrow and Mieszkowski (1986) model of capital tax competition. It turns out that even small levels of transport cost lead to a complete breakdown of the seminal result, the underprovision of public goods. Instead, there is a...
Persistent link: https://www.econbiz.de/10010274798
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A Probabilistic Solution to High-Dimensional Continuous-Time Macro and Finance Models
Huang, Ji - 2023
This paper introduces the probabilistic formulation of continuous-time economic models: forward stochastic differential equations (SDE) govern the dynamics of backward-looking variables, and backward SDEs capture that of forward-looking variables. Deep learning streamlines the search for the...
Persistent link: https://www.econbiz.de/10014345557
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Outside Options and Worker Motivation
Ahammer, Alexander; Fahn, Matthias; Stiftinger, Flora - 2023
We study the relationship between outside options and workers’ motivation to exert effort. We evaluate changes in outside options arising from age and experience cutoffs in the Austrian unemployment insurance (UI) system, and use absenteeism as a proxy for worker effort. Results indicate that...
Persistent link: https://www.econbiz.de/10014345957
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Competition and Career Advancement
Johnsen, Julian; Ku, Hyejin; Salvanes, Kjell G. - 2023
In standard promotion tournaments, contestants are ranked based on their output or productivity. We argue that workers’ career progression may also depend on their relative rankings in dimensions a priori unrelated to their job performance, such as visibility or in-person presence. Such...
Persistent link: https://www.econbiz.de/10014345961
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Precautionary Savings, Loss Aversion, and Risk : Theory and Evidence
Dhami, Sanjit; Hajimoladarvish, Narges; Georgalos, … - 2023
of savings, precautionary savings, loss aversion, and risk. We provide the relevant theory, followed by empirical tests …
Persistent link: https://www.econbiz.de/10014346247
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Can Competition Reduce Conflict?
Garg, Teevrat; Gennaioli, Caterina; Lovo, Stefania; … - 2023
We examine the effect of inter-group fiscal competition on within-group violent conflict. Using a triple difference design, we exploit exogenous variation in the degree to which villages in sub-districts compete for public funds. We find that higher competition between villages reduces conflict...
Persistent link: https://www.econbiz.de/10014346249