Narrow search
Showing 1 - 10 of 173
Cover Image
Unemployment and Consumption: Are Job Losses Less Painful near the Mediterranean?
Bentolila, Samuel; Ichino, Andrea - 2000
In this paper we analyze the relationship between unemployment and consumption. We study this relationship with panel … smaller consumption losses in Spanish and Italian households. We discuss this finding in the light of different market and … that credit and insurance markets are also more developed in the North than in the South, existing theories of consumption …
Persistent link: https://www.econbiz.de/10010314985
Cover Image
Limited Consumer Attention in International Trade
Egger, Hartmut; Falkinger, Josef - 2013
This paper introduces a model of limited consumer attention into an otherwise standard new trade theory model with love-of-variety preferences and heterogeneous firms. In this setting, we show that trade liberalization needs not be welfare enhancing if the consumers' capacity to gather and...
Persistent link: https://www.econbiz.de/10010292706
Cover Image
Continuous Logit Polycentric City Model
Wrede, Matthias - 2014
This paper analyzes a closed, essentially linear polycentric city with homogenous households who probabilistically select their workplace and residence locations. The study utilizes a continuous logit model to describe household location choices. In contrast to the classic urban model with...
Persistent link: https://www.econbiz.de/10010328832
Cover Image
Afriat's Theorem for Indivisible Goods
Forges, Francoise; Iehlé, Vincent - 2013
We identify a natural counterpart of the standard GARP for demand data in which goods are all indivisible. We show that the new axiom (DARP, for "discrete axiom of revealed preference") is necessary and sufficient for the rationalization of the data by a well-behaved utility function. Our...
Persistent link: https://www.econbiz.de/10010328833
Cover Image
Price Effects on Compound Commodities
Minagawa, Junichi; Upmann, Thorsten - 2016
We explore effects of simultaneous price changes for the demand of a group of goods, which we refer to as a compound commodity. Specifically, we consider unit and proportional cost components (e. g., taxes, transportation costs, etc.) imposed on the compound commodity. We find that there is a...
Persistent link: https://www.econbiz.de/10011555502
Cover Image
Nonhomothetic preferences and rent sharing in an open economy
Egger, Hartmut; Habermeyer, Simone - 2019
We develop a framework for studying how differences in the level and/or dispersion of per-capita income affect trade structure and welfare in a two-country model. Thereby, we embed nonhomothetic preferences into a home-market model with two sectors of production and one input factor. We...
Persistent link: https://www.econbiz.de/10012018213
Cover Image
Time Will Tell: Recovering Preferences when Choices Are Noisy
Alós-Ferrer, Carlos; Fehr, Ernst; Netzer, Nick - 2018
The ability to uncover preferences from choices is fundamental for both positive economics and welfare analysis. Overwhelming evidence shows that choice is stochastic, which has given rise to random utility models as the dominant paradigm in applied microeconomics. However, as is well known, it...
Persistent link: https://www.econbiz.de/10011932083
Cover Image
Afriat's theorem for general budget sets
Forges, Françoise; Minelli, Enrico - 2006
Afriat (1967) showed the equivalence of the strong axiom of revealed preference and the existence of a solution to a set of linear inequalities. From this solution he constructed a utility function rationalizing the choices of a competitive consumer. We extend Afriat's theorem to a class of...
Persistent link: https://www.econbiz.de/10010263900
Cover Image
Opt in versus opt out: a free-entry analysis of privacy policies
Bouckaert, Jan; Degryse, Hans - 2006
There is much debate on how the flow of information between firms should be organized, and whether existing privacy laws should be amended. We offer a welfare comparison of the three main current policies towards consumer privacy anonymity, opt in, and opt out within a two-period model of...
Persistent link: https://www.econbiz.de/10010264004
Cover Image
Differentiated annuities in a pooling equilibrium
Sheshinski, Eytan - 2006
Regular annuities provide payment for the duration of an owner's lifetime. Period-Certain annuities provide additional payment after death to a beneficiary provided the insured dies within a certain period after annuitization. It has been argued that the bequest option offered by the latter is...
Persistent link: https://www.econbiz.de/10010264015