Narrow search
Showing 1 - 10 of 1,864
Cover Image
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
Cover Image
Loss Aversion, Risk Aversion, and the Shape of the Probability Weighting Function
Rablen, Matthew D. - 2023
Loss aversion, risk aversion, and the probability weighting function (PWF) are three central concepts in explaining …/tolerant stochastic reference dependence and optimism/pessimism over probability distributions. I give a preference interpretation to … extend to distinct PWFs in the gain and loss domains, as under prospect theory …
Persistent link: https://www.econbiz.de/10014350127
Cover Image
Efficient Level of Seps Licensing
Langus, Gregor; Lipatov, Vilen - 2022
We study the question whether a holder of standard essential patents (SEPs) should be allowed to choose the level in the value chain at which to offer a FRAND license to its SEPs. We give a pos-itive answer to this question for two reasons. First, the SEP holder and the social planner tend to...
Persistent link: https://www.econbiz.de/10013300871
Cover Image
Multicollinearity in the Presence of Errors-in-Variables Can Increase the Probability of Type-I Error
Komlos, John - 2019
Multicollinearity, especially in combination with errors-in-variables, can increase the likelihood of a Type-I error by inflating the value of the estimated coefficients by more than it magnifies their standard errors, thereby increasing the likelihood of obtaining statistically significant...
Persistent link: https://www.econbiz.de/10012892129
Cover Image
Income taxation, tuition subsidies, and choice of occupation : implications for production efficiency
Bjertnæs, Geir Haakon - 2005
The desirability for production efficiency is re-examined in this study, where agents choose occupation based on lifetime income net of tuition costs. Efficient revenue raising implies that the government should trade off efficiency in production for efficiency in intertemporal consumption, as...
Persistent link: https://www.econbiz.de/10010271821
Cover Image
Explaining the favorite-longshot bias: Is it risk-love or misperceptions?
Snowberg, Erik; Wolfers, Justin - 2010
misperceptions of probability drive the favorite-longshot bias, as suggested by Prospect Theory. … of the probability of a horse winning - longshots are overbet, while favorites are underbet. Neoclassical explanations of …
Persistent link: https://www.econbiz.de/10010276786
Cover Image
The Resolution of Uncertainty in the Value and Probability Domains
Lee, Eungik; Ngangoue, Kathleen; Schotter, Andrew - 2024
We compare preferences for temporal resolution when uncertainty is resolved over a probability rather than a value. In …
Persistent link: https://www.econbiz.de/10014534430
Cover Image
Impatience and Uncertainty : Experimental Decisions Predict Adolescents' Field Behavior
Sutter, Matthias - 2011
We study risk attitudes, ambiguity attitudes, and time preferences of 661 children and adolescents, aged ten to eighteen years, in an incentivized experiment and relate experimental choices to field behavior. Experimental measures of impatience are found to be significant predictors of...
Persistent link: https://www.econbiz.de/10013118350
Cover Image
Workforce or Workfare?
Brett, Craig - 2011
This article explores the use of workfare as part of an optimal tax mix when labor supply responses are along the extensive margin. Particular attention is paid to the interaction between workfare and an earned income tax credit, two policies that are designed to provide additional incentives...
Persistent link: https://www.econbiz.de/10013124395
Cover Image
Fixed-Term and Permanent Employment Contracts : Theory and Evidence
Cao, Shutao - 2014
This paper constructs a theory of the coexistence of fixed-term and permanent employment contracts in an environment …
Persistent link: https://www.econbiz.de/10013069444