Showing 1 - 10 of 1,600
How should one evaluate investment projects whose CCAPM betas are uncertain? This question is particularly crucial for projects yielding long-lasting impacts on the economy, as is the case for example for many green investments. We define the notion of a certainty equivalent beta. We show that...
Persistent link: https://www.econbiz.de/10013087728
I analyze how lack of commitment affects the maturity structure of sovereign debt. Governments balance benefits of …-term debt affects default and rollover decisions by subsequent policy makers. The equilibrium maturity structure is shaped by … maturity structure with positive gross positions and a shortening of the maturity structure when debt issuance is high, output …
Persistent link: https://www.econbiz.de/10013316425
This paper develops a dynamic two-country neoclassical stochastic growth model with incomplete markets. Short-term credit flows can be excessive and reverse suddenly. The equilibrium outcome is constrained inefficient due to pecuniary externalities. First, an undercapitalized country borrows too...
Persistent link: https://www.econbiz.de/10013028913
countries (Home and Foreign) which are located in different time zones, we highlight the impact of trade in labor services (via … the shift-working commodity is held by pairs of countries in different time zones and connected through a good …
Persistent link: https://www.econbiz.de/10013121206
We present a model of courtship in which the timing of marriage is affected by the cognitive dissonance between perceived norms and personal aims. We argue that as long as the family has been the main provider of social protection, marriage has been favoured by strongly felt social norms, and...
Persistent link: https://www.econbiz.de/10012776387
of 52 countries during the globalization period 1988-2006 strongly supports the model. Results solve several time …
Persistent link: https://www.econbiz.de/10012953690
In a family context with endogenous timing, multiple public goods and alternative parental instruments, we show that the optimal timing for the sequential-action game played by rotten kids and a parent depends crucially on whether the kids are homogeneous or heterogeneous. For homogeneous kids,...
Persistent link: https://www.econbiz.de/10012961947
conferred by time zone differences. We emphasize the role of the entrepreneurs, who decide how to produce business services (i … dramatic change in industrial structure due to entrepreneurial relocation (i.e., service offshoring) to take advantage of time …
Persistent link: https://www.econbiz.de/10013316225
In a continuous-time framework we study the technology and investment choice problem of a continuous co …
Persistent link: https://www.econbiz.de/10013316341
when the private information arrives in time to rescale the agent’s effort. Rescaling is more effective than pure monetary …
Persistent link: https://www.econbiz.de/10014043494