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Market imperfections, wealth inequality, and the distribution of trade gains

Foellmi, Reto; Oechslin, Manuel - 2010

Globalization increasingly involves less-developed countries (LDCs), i.e., economies which usually suffer from severe imperfections in their financial systems. Taking these imperfections seriously, we analyze how credit frictions affect the distributive impact of trade liberalizations. We find...

Persistent link: https://www.econbiz.de/10010316053

Finance and economic development in a model with credit rationing

Arcand, Jean-Louis; Berkes, Enrico; Panizza, Ugo - 2013

This paper develops a simple model with credit rationing and endogenous default risk in which the expectation of a bailout may lead to a financial sector which is too large with respect to the the social optimum. The paper concludes with a short discussion of how this model could be used as a...

Persistent link: https://www.econbiz.de/10010316740

Uncertain demand, consumer loss aversion, and flat-rate tariffs

Herweg, Fabian; Mierendorff, Konrad - 2011

We consider a model of firm pricing and consumer choice, where consumers are loss averse and uncertain about their future demand. Possibly, consumers in our model prefer a flat rate to a measured tariff, even though this choice does not minimize their expected billing amount - a behavior in line...

Persistent link: https://www.econbiz.de/10010316924

Bias corrections for two-step fixed effects panel data estimators

Fernández-Val, Iván; Vella, Francis - 2007

This paper introduces bias-corrected estimators for nonlinear panel data models with both time invariant and time varying heterogeneity. These include limited dependent variable models with both unobserved individual effects and endogenous explanatory variables, and sample selection models with...

Persistent link: https://www.econbiz.de/10010318527

The response of term rates to monetary policy uncertainty

Jordá, Oscar; Salyer, Kevin D. - 2001

This paper shows that greater uncertainty about monetary policy can lead to a decline in nominal interest rates. In the context of a limited participation model, monetary policy uncertainty is modeled as a mean-preserving spread in the distribution for the money growth process. This increase in...

Persistent link: https://www.econbiz.de/10010318595

An economic index of riskiness

Aumann, Robert J.; Serrano, Roberto - 2006

Define the riskiness of a gamble as the reciprocal of the absolute risk aversion (ARA) of an individual with constant ARA who is indifferent between taking and not taking that gamble. We characterize this index by axioms, chief among them a “duality” axiom which, roughly speaking, asserts...

Persistent link: https://www.econbiz.de/10010318897

Growth and welfare effects of business cycles in economies with idiosyncratic human capital risk

Krebs, Tom - 2002

This paper uses a tractable macroeconomic model with idiosyncratic human capital risk and incomplete markets to analyze the growth and welfare effects of business cycles. The analysis is based on the assumption that the elimination of business cycles eliminates the variation in idiosyncratic...

Persistent link: https://www.econbiz.de/10010318917

Natural selection and the origin of economic growth

Galor, Oded; Moav, Omer - 2000

This research develops an evolutionary growth theory that captures the interplay between the evolution of mankind and … economic growth since the emergence of the human species. This uni…ed theory encompasses the observed evolution of population … theory suggests that prolonged economic stagnation prior to the transition to sustained growth stimulated natural selection …

Persistent link: https://www.econbiz.de/10010318963

Inequality in land ownership, the emergence of human capital promoting institutions, and the great divergence

Galor, Oded; Moav, Omer; Vollrath, Dietrich - 2006

. The prediction of the theory regarding the adverse effect of the concentration of land ownership on education expenditure …

Persistent link: https://www.econbiz.de/10010318968

Risk-sorting and preference for team piece rates

Bäker, Agnes; Mertins, Vanessa - 2012

Incentive schemes not only influence the effort provision of workers, but might also induce sorting. As drivers of self-selection, the literature mainly focuses on measures of productivity; however, other variables, such as preferences, beliefs and personality, also play a role. With this paper,...

Persistent link: https://www.econbiz.de/10010319744