Narrow search
Showing 1 - 10 of 5,709
Cover Image
Rating agencies in the face of regulation
Opp, Christian; Opp, Marcus M.; Harris, Milton - 2011 - Last rev.: October 26, 2011
used to regulate institutional investors. We show that introducing rating-contingent regulation that favors highly rated …
Persistent link: https://www.econbiz.de/10009355138
Cover Image
When Does Regulation Distort Costs? Lessons from Fuel Procurement in U.S. Electricity Generation
Cicala, Steve - 2013
Under what conditions does cost-of-service regulation lead firms to distort costs? This paper analyzes changes in fuel …-level legislation that ended cost-of-service regulation among investor-owned electric utilities in the late 1990s. I construct a … under cost-of-service regulation. I then show that the drop in the price of coal is associated with a reallocation of …
Persistent link: https://www.econbiz.de/10014153006
Cover Image
Why did so many people make so many ex post bad decisions? The causes of the foreclosure crisis
Foote, Christopher L.; Gerardi, Kristopher S.; Willen, … - 2012
We present 12 facts about the mortgage crisis. We argue that the facts refute the popular story that the crisis resulted from finance industry insiders deceiving uninformed mortgage borrowers and investors. Instead, we argue that borrowers and investors made decisions that were rational and...
Persistent link: https://www.econbiz.de/10010292274
Cover Image
Why do borrowers pledge collateral? New empirical evidence on the role of asymmetric information
Berger, Allen N.; Espinosa-Vega, Marco A.; Frame, W. Scott - 2007
An important theoretical literature motivates collateral as a mechanism that mitigates adverse selection, credit rationing, and other inefficiencies that arise when borrowers hold ex ante private information. There is no clear empirical evidence regarding the central implication of this...
Persistent link: https://www.econbiz.de/10010292292
Cover Image
Tests of ex ante versus ex post theories of collateral using private and public information
Berger, Allen N.; Frame, W. Scott; Ioannidou, Vasso - 2010
Collateral is a widely used, but not well understood, debt-contracting feature. Two broad strands of theoretical literature explain collateral as arising from the existence of either ex ante private information or ex post incentive problems between borrowers and lenders. However, the extant...
Persistent link: https://www.econbiz.de/10010292349
Cover Image
Comparing the value revelance of R&D reporting in Germany: standard and selection effects
Ramb, Fred; Reitzig, Markus - 2005
On the basis of accounting and market data for firms and groups listed on German stock exchanges between 1997 and 2003, we show that the value relevance of R&D information under German accounting standards can be superior to that provided by US-GAAP and IAS. The results, obtained while...
Persistent link: https://www.econbiz.de/10010295781
Cover Image
Permanent and transitory policy shocks in an empirical macro model with asymmetric information
Kozicki, Sharon; Tinsley, P. A. - 2003
Despite a large literature documenting that the efficacy of monetary policy depends on how inflation expectations are anchored, many monetary policy models assume: (1) the inflation target of monetary policy is constant; and, (2) the inflation target is known by all economic agents. This paper...
Persistent link: https://www.econbiz.de/10010298277
Cover Image
Knowledge is power: A theory of information, income, and welfare spending
Lind, Jo Thori; Rhoner, Dominic - 2011
No voters cast their votes based on perfect information, but better educated and richer voters are on average better informed than others. We develop a model where the voting mistakes resulting from low political knowledge reduce the weight of poor voters, and cause parties to choose political...
Persistent link: https://www.econbiz.de/10010330258
Cover Image
Explaining exchange rate dynamics: the uncovered equity return parity condition
Cappiello, Lorenzo; De Santis, Roberto A. - 2005
By employing Lucas’ (1982) model, this study proposes an arbitrage relationship – the Uncovered Equity Return Parity (URP) condition – to explain the dynamics of exchange rates. When expected equity returns in a country/region are lower than expected equity returns in another...
Persistent link: https://www.econbiz.de/10011604575
Cover Image
Sequential optimization, front-loaded information, and U.S. consumption
Willman, Alpo - 2007
In an overlapping generations maximization framework with consumers, whose information on uncertain future income realizations is front loaded, a closed form aggregate consumption function with CRRA preferences is derived. To have a closed form solution we assume that consumers solve their...
Persistent link: https://www.econbiz.de/10011604811