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Perceived Wealth, Cognitive Sophistication and Behavioral Inattention
Assenza, Tiziana - 2020
By means of a laboratory experiment, we show that, contrary to standard consumer theory, financially equivalent balance sheet profiles may be perceived as non fungible in a controlled frictionless environment with no probabilistic attributes. A large majority of subjects indeed have a bias in...
Persistent link: https://www.econbiz.de/10012845685
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Cognitive Imprecision and Strategic Behavior
Frydman, Cary; Nunnari, Salvatore - 2021
We propose and experimentally test a theory of strategic behavior in which players are cognitively imprecise and perceive a fundamental parameter with noise. We focus on 2 x 2 coordination games, which generate multiple equilibria when perception is precise. When adding a small amount of...
Persistent link: https://www.econbiz.de/10013310763
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Behavioral New Keynesian Models : Learning vs. Cognitive Discounting
Meggiorini, Greta; Milani, Fabio - 2021
This paper estimates a New Keynesian model with new and old behavioral elements. Agents in the model exhibit cognitive discounting, or myopia: they discount variables far into the future at higher rates than typically implied in the benchmark model. We investigate the model under different...
Persistent link: https://www.econbiz.de/10013229788
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Animal Welfare, Moral Consumers and the Optimal Regulation of Animal Food Production
Eichner, Thomas; Runkel, Marco - 2022
animal food quality. With consumer and producer heterogeneity, regulation is the same but sector-specific, with a more … intense regulation in the sector with the worse living conditions of animals …
Persistent link: https://www.econbiz.de/10014264451
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Construction contracts (or How to get the right building at the right price?)
Chakravarty, Surajeet; MacLeod, W. Bentley - 2006
Most contracts that individuals enter into are not written from scratch; rather, they depend upon forms and terms that have been successful in the past. In this paper, we study the structure of form construction contracts published by the American Institute of Architects (AIA). We show that...
Persistent link: https://www.econbiz.de/10010263907
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Do better schools lead to more growth?: cognitive skills, economic outcomes, and causation
Hanushek, Eric Alan; Woessmann, Ludger - 2009
We provide evidence that the robust association between cognitive skills and economic growth reflects a causal effect of cognitive skills and supports the economic benefits of effective school policy. We develop a new common metric that allows tracking student achievement across countries, over...
Persistent link: https://www.econbiz.de/10010274159
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Schooling, cognitive skills, and the Latin American growth puzzle
Hanushek, Eric Alan; Woessmann, Ludger - 2009
Economic development in Latin America has trailed most other world regions over the past four decades despite its relatively high initial development and school attainment levels. This puzzle can be resolved by considering the actual learning as expressed in tests of cognitive skills, on which...
Persistent link: https://www.econbiz.de/10010274163
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Exploring higher-order risk effects
Deck, Cary; Schlesinger, Harris - 2008
Higher-order risk effects play an important role in examining economic behavior under uncertainty. A precautionary demand for saving has been linked to the property of prudence and the property of temperance has been used to show how the presence of an unavoidable risk affects one's behavior...
Persistent link: https://www.econbiz.de/10010264510
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Banking regulation and prompt corrective action
Freixas, Xavier; Parigi, Bruno Maria - 2007
. First, in a moral hazard setting, capital requirement regulation may force banks to hold a large fraction of safe assets … asset classes than in others. Taken together, these two ideas explain why, surprisingly, capital regulation, which may cope … inefficient. We show that the optimal capital regulation consists of a rule that a) allows well capitalized banks to freely invest …
Persistent link: https://www.econbiz.de/10010264241
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A continuous theory of income insurance
Lindbeck, Assar; Persson, Mats - 2010
In this paper we treat an individual's health as a continuous variable, in contrast to the traditional literature on income insurance, where it is regularly treated as a binary variable. This is not a minor technical matter; in fact, a continuous treatment of an individual's health sheds new...
Persistent link: https://www.econbiz.de/10010270506