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whether and how to regulate the use of this data. We study how new data affects incentives for agents to exert effort in …
Persistent link: https://www.econbiz.de/10014468080
In this paper, I use the standard machinery of dynamic general equilibrium models to generate a rich class of probabilities and discuss their properties. This class includes probabilities consistent with Bayes' rule and known non-Bayesian rules. If the prior support is correctly specified, I...
Persistent link: https://www.econbiz.de/10012968673
You're probably familiar, at least in passing, with the 'convexity' of long-term bonds - i.e. that yields dropping 1% produce a bigger price move than yields rising 1%. A significant amount of brainpower has gone into understanding all the ramifications of this convexity in the fixed income...
Persistent link: https://www.econbiz.de/10012902324
The paper examines the problem of portfolio selection based on the forecasts of unknown quality in a mean-variance framework. Early work by Treynor and Black (1973) established a relationship between the correlation of forecasts, the number of independent securities available and the Sharpe...
Persistent link: https://www.econbiz.de/10013061761
Facing climate change, seasonal forecasts, and weather warnings are increasingly important to warn the public of the risk of extreme climate conditions. However, being confronted with inaccurate forecast systems may undermine individuals' responsiveness in the long run. Using an online...
Persistent link: https://www.econbiz.de/10015053857
skills. This is a particularly acute problem in education policy evaluation. We demonstrate that there are important latent … amount of conscientious effort that students exhibit on surveys, as measured by their item response rates. We use six … with higher item response rates are more likely to attain higher levels of education. The pattern of findings gives …
Persistent link: https://www.econbiz.de/10014132109
Persistent link: https://www.econbiz.de/10009696245
Enrollment rates to higher education reveal quite large variation over time which cannot be explained by productivity … fluctuations in the demand for education. Agents are heterogeneous in their beliefs about future wage differentials. An … belief. Costly access to information on the returns to education induces agents to use potentially destabilizing backward …
Persistent link: https://www.econbiz.de/10014031777
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