Showing 1 - 10 of 143
This paper develops and applies a simple graphical approach to portfolio selection that accounts for covariance between asset returns and an investor's labor income. Our graphical approach easily handles income shocks that are partly hedgable, multiple risky assets, many periods and life cycle...
Persistent link: https://www.econbiz.de/10012742909
We analyze consumption and portfolio behavior in a life-cycle model with realistic borrowing costs and income processes. We show that even a small wedge between borrowing costs and the risk-free return dramatically shrinks the demand for equity. When the cost of borrowing equals or exceeds the...
Persistent link: https://www.econbiz.de/10012727903
Private equity critics claim that leveraged buyouts bring huge job losses. To investigate this claim, we construct and analyze a new dataset that covers U.S. private equity transactions from 1980 to 2005. We track 3,200 target firms and their 150,000 establishments before and after acquisition,...
Persistent link: https://www.econbiz.de/10012707664
This paper develops and applies a simple graphical approach to portfolio selection that accounts for covariance between asset returns and an investor's labor income. Our graphical approach easily handles income shocks that are partly hedgable, multiple risky assets, many periods and life cycle...
Persistent link: https://www.econbiz.de/10012763291
This article examines the incentive effects of interim performance evaluation when a worker has career concerns and effort is history dependent. Disclosure has two effects: it increases the variance of future effort, and it allows the worker to use current effort to influence his employer's...
Persistent link: https://www.econbiz.de/10010721831
How does transparency, a key feature of central bank design, affect the deliberation of monetary policymakers? We exploit a natural experiment in the Federal Open Market Committee in 1993 together with computational linguistic models (particularly Latent Dirichlet Allocation) to measure the...
Persistent link: https://www.econbiz.de/10010849619
In many areas of economics there is a growing interest in how expertise and preferences drive individual and group decision making under uncertainty. Increasingly, we wish to estimate such models to quantify which of these drive decision making. In this paper we propose a new channel through...
Persistent link: https://www.econbiz.de/10010849638
This paper applies ideas and findings from Managerial Accounting to the problem of public good provision. It first links the problems of traditional bureaucracies with those of "discretionary expense centers", which are characterized by poor user and supplier incentives as well as...
Persistent link: https://www.econbiz.de/10010940077
In most firms, managers periodically assess workers performance. Evidence suggests that managers with hold information during these reviews, and some observers argue that this necessarily reduces surplus. This paper assesses the validity of this argument when workers have career concerns....
Persistent link: https://www.econbiz.de/10010547116
We test whether outside experts have information not available to insiders by using the voting record of the Bank of Englands Monetary Policy Committee. Members with more private information should vote more often against conventional wisdom, which we measure as the average belief of market...
Persistent link: https://www.econbiz.de/10010547521