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"This paper studies empirically the relationship between trade policy and individual income risk faced by workers, and uses the estimates of this empirical analysis to evaluate the welfare effect of trade reform. The analysis proceeds in three steps. First, longitudinal data on workers are used...
Persistent link: https://www.econbiz.de/10010522578
much success. Indeed, the data seem to suggest a positive relationship between measures of uncertainty and incentives … uncertainty on incentives through the allocation of responsibility to employees. When workers operate in certain settings, the …. Hence, uncertainty and output-based pay are positively related. I argue that parts of the existing empirical literature are …
Persistent link: https://www.econbiz.de/10012470935
As growing numbers of retirees reach retirement age with substantial balances in self-directed retirement plans, annuities are likely to become increasingly important instruments for drawing down retirement savings. This study explores recent trends in the pricing of single-premium annuity...
Persistent link: https://www.econbiz.de/10012470938
We show that Tobin's q, as proxied by the ratio of the firm's market value to its book value, increases with the firm's systematic equity risk and falls with the firm's unsystematic equity risk. Further, an increase in the firm's total equity risk is associated with a fall in q. The negative...
Persistent link: https://www.econbiz.de/10012470942
There are a host of potentially risky behaviors in which youth engage, which have important implications for both their well being as youth and their life prospects. The past decade has seen dramatic shifts in the intensity with which youths pursue these risky activities: for example, youth...
Persistent link: https://www.econbiz.de/10012470969
uncertainty over the period 1970 to 1995. We construct measures of inflation uncertainty as well as aggregate nominal and real … uncertainty. The results not only corroborate previous findings of an inverse relationship between contract duration and inflation … uncertainty, but document that this relationship extends to both measures of aggregate uncertainty. We also explore the robustness …
Persistent link: https://www.econbiz.de/10012471019
Typical value-at-risk (VAR) calculations involve the probabilities of extreme dollar losses, based on the statistical distributions of market prices. Such quantities do not account for the fact that the same dollar loss can have two very different economic valuations, depending on business...
Persistent link: https://www.econbiz.de/10012471198
) cases, these robust policies are more aggressive than the optimal policies absent model uncertainty. The specific robust … policies depend strongly on the formation of model uncertainty used, and we make some suggestions about which formulation is …
Persistent link: https://www.econbiz.de/10012471286
The objective of this paper is to find the quantitative importance of some predictors of mortality among the population aged 70 or over. The predictors are socio-economic indicators (income, wealth and education), thirteen health indicators including a history of heart attack or cancer, and...
Persistent link: https://www.econbiz.de/10012471342
We propose a new framework for pricing assets, derived in part from the traditional consumption-based approach, but which also incorporates two long-standing ideas in psychology: prospect theory, and evidence on how prior outcomes affect risky choice. Consistent with prospect theory, the...
Persistent link: https://www.econbiz.de/10012471569