Narrow search
Showing 1 - 10 of 1,900
Cover Image
Intertemporal Utility with Heterogeneous Goods and Constant Elasticity of Substitution
Quaas, Martin - 2020
We characterize intertemporal utility functions over heterogeneous goods that feature (i) a constant elasticity of … the goods. We find that a standard (stationary) intertemporal utility function is consistent with these two properties if … elasticities of substitution are identical, or if the instantaneous utility function is Cobb-Douglas. We also characterize the …
Persistent link: https://www.econbiz.de/10012844425
Cover Image
The Global Effects of COVID-19-Induced Uncertainty
Caggiano, Giovanni - 2020
We estimate a three-variate VAR using proxies of global financial uncertainty, the global financial cycle, and world industrial production to simulate the effects of the jump in financial uncertainty observed in correspondence of the Covid-19 outbreak. We predict the cumulative loss in world...
Persistent link: https://www.econbiz.de/10012834352
Cover Image
Micro Jumps, Macro Humps : Monetary Policy and Business Cycles in an Estimated Hank Model
Auclert, Adrien - 2020
We estimate a Heterogeneous-Agent New Keynesian model with sticky household expectations that matches existing microeconomic evidence on marginal propensities to consume and macroeconomic evidence on the impulse response to a monetary policy shock. Our estimated model uncovers a central role for...
Persistent link: https://www.econbiz.de/10012842965
Cover Image
Diverse Risk Preferences and Heterogeneous Expectations in an Asset Pricing Model
Gomez, Thomas - 2020
We propose a heuristic switching model of an asset market where the agents' choice of heuristic is consistent with their individual risk aversion. They choose between a fundamentalist and a trend-following rule to form expectations about the price of a risky asset. Given their risk aversion,...
Persistent link: https://www.econbiz.de/10012844420
Cover Image
Partial Norms
D'Adda, Giovanna - 2019
We consider an expanded notion of social norms that renders them belief-dependent and partial, formulate a series of related testable predictions, and design an experiment based on a variant of the dictator game that tests for empirical relevance. Main results: Normative beliefs influence...
Persistent link: https://www.econbiz.de/10012889682
Cover Image
Arbitrage and Beliefs
Khorrami, Paymon - 2020
We study a segmented-markets setting in which self-fulfilling volatility can arise. The only requirements are (i) asset price movements redistribute wealth across markets (e.g., equities rise as bonds fall) and (ii) some stabilizing force keeps valuation ratios stationary (e.g., cash flow growth...
Persistent link: https://www.econbiz.de/10012825392
Cover Image
Uncertainty, Imperfect Information, and Expectation Formation Over the Firms's Life Cycle
Chen, Cheng - 2020
Using a long-panel dataset of Japanese firms that contains firm-level sales forecasts, we provide evidence on firm-level uncertainty and imperfect information over their life cycle. We find that firms make non-negligible and positively correlated forecast errors. However, they make more precise...
Persistent link: https://www.econbiz.de/10012826001
Cover Image
Associative Memory and Belief Formation
Enke, Benjamin - 2019
This paper experimentally studies the role of associative memory for belief formation. Real-world information signals are often embedded in memorable contexts. Thus, today's news, and the contexts they are embedded in, may cue the selective retrieval of similar past news and hence contribute to...
Persistent link: https://www.econbiz.de/10012859993
Cover Image
Policy Uncertainty and Information Flows : Evidence from Pension Reform Expectations
Ciani, Emanuele - 2019
Subjective expectations about future policy play an important role in individuals' welfare. We examine how workers' expectations about pension reform vary with proximity to reforms, information cost, and aggregate information acquisition. We construct a new pan-European dataset of reform...
Persistent link: https://www.econbiz.de/10012861423
Cover Image
Adaptive Agents May Be Smarter than You Think : Unbiasedness in Adaptive Expectations
Palestrini, Antonio; Gallegati, Mauro; Delli Gatti, Domenico - 2021
Agents forming adaptive expectations generally make systematic mistakes. This characterization has fostered the rejection of adaptive expectations in macroeconomics. Experimental evidence, however, shows that in complex environments human subjects frequently rely on adaptive heuristics –...
Persistent link: https://www.econbiz.de/10013217385