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Legal uncertainty as a welfare enhancing screen
Lang, Matthias - 2016
Consider legal uncertainty as uncertainty about the legality of a specific action. In particular, suppose that the threshold of legality is uncertain. I show that this legal uncertainty raises welfare. Legal uncertainty changes deterrence in opposite directions. The probability of conviction...
Persistent link: https://www.econbiz.de/10011557794
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Redistribution of return inequality
Schulz, Karl - 2021
Wealthier households obtain higher returns on their investments than poorer ones. How should the tax system account for this return inequality? I study capital taxation in an economy in which return rates endogenously correlate with wealth. The leading example is a financial market, where the...
Persistent link: https://www.econbiz.de/10012499593
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Information, uncertainty, and subjective entitlements in bargaining
Karagözoğlu, Emin; Riedl, Arno - 2010
More often than not production processes are the joint endeavor of people having different abilities and productivities. Such production processes and the associated surplus production are often not fully transparent in the sense that the relative contributions of involved agents are blurred;...
Persistent link: https://www.econbiz.de/10003994177
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Diagnostic uncertainty and insurance coverage in credence goods markets
Balafoutas, Loukas; Fornwagner, Helena; Kerschbamer, Rudolf - 2020
Credence goods markets – like for health care or repair services – with their informational asymmetries between sellers and customers are prone to fraudulent behavior of sellers and resulting market inefficiencies. We present the first model that considers both diagnostic uncertainty of...
Persistent link: https://www.econbiz.de/10012312079
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Uncertainty and the cost of bank vs. bond finance
Grimme, Christian - 2019
risk of firm default. …
Persistent link: https://www.econbiz.de/10011958806
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Adverse selection vs discrimination risk with genetic testing : an experimental approach
Bardey, David; De Donder, Philippe; Mantilla, Cesar - 2014
, exposing them to the risk of having to pay a large premium in case they are discovered to have a high probability of developing … a disease (a discrimination risk). Differently, Consent Law allows them to hide this detrimental information, creating …
Persistent link: https://www.econbiz.de/10010433974
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Measuring market expectations
Baumeister, Christiane - 2021
macroeconomic variables. However, the presence of time-varying risk premia requires an adjustment of market prices to obtain the … estimating risk premia and highlights the proliferation of risk pricing factors that result in a wide range of different asset …-price-based expectation measures. It then describes a key methodological innovation to evaluate the empirical plausibility of risk premium …
Persistent link: https://www.econbiz.de/10012622575
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Retrospective capital gains taxation in the real world
Menoncin, Francesco; Panteghini, Paolo - 2009
even if the risk-free asset return is correlated with other risky assets' returns. However, equivalence fails to hold on an … achieved only if a huge amount of information is available, making its implementation a hard task. -- capital gains ; risk …
Persistent link: https://www.econbiz.de/10003850804
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The crisis in the foreign exchange market
Melvin, Michael; Taylor, Mark P. - 2009
The financial crisis of 2007-2008 had major implications for the foreign exchange market. We review events and implications for exchange rates, volatility, returns to currency investing, and transaction costs. This blow-by-blowʺ narrative is intended to be a resource for researchers seeking a...
Persistent link: https://www.econbiz.de/10003861767
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Social security incidence under uncertainty assessing Italian reforms
Geron, Devis - 2009
turns out to decrease ex-ante individual welfare, unless restrictions are assumed on retirement behavior. Overall, risk … shown to yield a slight ex-ante welfare improvement from a purely risk-insurance perspective. This relative gain stems from … risk diversification across working-life wages in computing benefits. -- social security reforms ; uncertainty ; risk …
Persistent link: https://www.econbiz.de/10003888079