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Schedule Selection by Agents : From Price Plans to Tax Tables
Luttmer, Erzo F. P. - 2010
structure is relevant in many applications. We develop the theory underlying optimal menus of non-linear schedules and prove …
Persistent link: https://www.econbiz.de/10012759520
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Trading Votes for Votes. A Decentralized Matching Algorithm
Casella, Alessandra - 2015
? (2) Is it reachable through a decentralized algorithm? (3) What welfare properties does it possess? We prove that a … allocation achieved via sequential pairwise trades, but lends only weak support to the dynamic algorithm itself …
Persistent link: https://www.econbiz.de/10013013510
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Transition to FDI Openness : Reconciling Theory and Evidence
McGrattan, Ellen R. - 2011
conclusive evidence that they are positive, as theory predicts. This paper shows that the lack of empirical evidence is … consistent with theory if countries are in transition to FDI openness. Anticipated welfare gains lead to temporary declines in … reconciliation of theory and evidence is accomplished with a multicountry dynamic general equilibrium model parameterized with data …
Persistent link: https://www.econbiz.de/10013130264
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The Inefficiency of Refinancing : Why Prepayment Penalties are Good for Risky Borrowers
Mayer, Christopher J. - 2010
This paper explores the practice of mortgage refinancing in a dynamic competitive lending model with risky borrowers and costly default. We show that prepayment penalties improve welfare by ensuring longer-term lending contracts, which prevents the mortgage pools from becoming disproportionately...
Persistent link: https://www.econbiz.de/10013135393
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Valuing Identity
Fryer, Roland G. - 2010
Affirmative action policies are practiced around the world. This paper explores the welfare economics of such policies. A model is proposed where heterogeneous agents, distinguished by skill level and social identity, compete for positions in a hierarchy. The problem of designing an efficient...
Persistent link: https://www.econbiz.de/10013135413
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Transparency and Credibility : Monetary Policy with Unobservable Goals
Faust, Jon - 2010
We define and study transparency, credibility, and reputation in a model where the central bank's characteristics are unobservable to the private sector and are inferred from the policy outcome. A low-credibility bank optimally conducts a more inflationary policy than a high-credibility bank, in...
Persistent link: https://www.econbiz.de/10013137302
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Firm Entry, Trade, and Welfare in Zipf's World
di Giovanni, Julian - 2010
Firm size follows Zipf's Law, a very fat-tailed distribution that implies a few large firms account for a disproportionate share of overall economic activity. This distribution of firm size is crucial for evaluating the welfare impact of economic policies such as barriers to entry or trade...
Persistent link: https://www.econbiz.de/10013138768
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Growth and Welfare in a Small Open Economy
Grossman, Gene M. - 2010
We construct a model of growth based on endogenous technological change in a small, open economy. Entrepreneurs develop new intermediate products whenever the present value of potential profits exceeds the cost of R&D. Diversity of intermediates contributes to total factor productivity in the...
Persistent link: https://www.econbiz.de/10013139328
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Why Don't Issuers Choose IPO Auctions? The Complexity of Indirect Mechanisms
Jagannathan, Ravi - 2010
In this paper we present a comprehensive comparison of IPO placement methods in over 50 countries. We find that out of the three primary methods, fixed price public offers, auctions, and book building, auctions are least popular with issuers. Since auctions allow for price discovery while...
Persistent link: https://www.econbiz.de/10013139898
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The Welfare Economics of Default Options in 401(K) Plans
Bernheim, B. Douglas - 2011
passive choice, and other 401(k) plan features. Depending on which theory and welfare perspective one adopts, virtually any …
Persistent link: https://www.econbiz.de/10013118423