Similar Search Results

The empirics of general equilibrium trade theory: What have we learned?

Bernhofen, Daniel - 2010

data. Three lessons stand out. First, competitive and new trade theory models are complementary rather than competing ways … for structural estimation regarding the pattern of international specialization. Third, empirical confirmations of the … core predictions of the model provide scientific support for employing the competitive trade model in structural estimation. …

Persistent link: https://www.econbiz.de/10010274817

The impact of financial market frictions on trade flows, capital flows and economic development

Bougheas, Spiros; Falvey, Rod - 2011

We introduce financial frictions in a two sector model of international trade with heterogeneous agents. The level of specialization in the economy (economic development) depends on the quality of financial institutions. Underdeveloped financial markets prohibit an economy to specialize in...

Persistent link: https://www.econbiz.de/10010274820

Higher order expectations, illiquidity, and short-term trading

Cespa, Giovanni; Vives, Xavier - 2011

We propose a theory that jointly accounts for an asset illiquidity and for the asset price potential over-reliance on …

Persistent link: https://www.econbiz.de/10010274821

Asymmetric taxation and performance-based incentive contracts

Niemann, Rainer - 2011

This paper analyzes the effects of symmetric and asymmetric taxation on performance-based versus fixed remuneration contracts. I integrate a proportional corporation tax and a proportional wage tax into a binary principal-agent model. The wage tax increases the remuneration costs and makes the...

Persistent link: https://www.econbiz.de/10010274823

Selection biases in complementary R&D projects

Choi, Jay Pil; Gerlach, Heiko - 2011

This paper analyzes selection biases in the project choice of complementary technologies that are used in combination to produce a final product. In the presence of complementary technologies, patents allow innovating firms to hold up rivals who succeed in developing other system components....

Persistent link: https://www.econbiz.de/10010274825

The cult of statistical significance

Krämer, Walter - 2010

This article takes issue with a recent book by Ziliak and McCloskey (2008) of the same title. Ziliak and McCloskey argue that statistical significance testing is a barrier rather than a booster for empirical research in many fields and should therefore be abandoned altogether. The present...

Persistent link: https://www.econbiz.de/10010274828

Discounting, inequalities and economic convergence

Gollier, Christian - 2010

The aim of this paper is to examine the impact of inequalities and economic convergence on the efficient discount rate, in the absence of any risk-sharing scheme. We consider an economy in which the initial consumption level and the distribution of consumption growth are heterogeneous. The...

Persistent link: https://www.econbiz.de/10010274835

Shutting the stable door after the horse has bolted? On educational risk and the quality of education

Schindler, Dirk; Weigert, Benjamin - 2011

We analyze whether a redistributive government should provide ex ante insurance against unfortunate outcomes or whether it should instead rely on transfers for redistributing income ex post. To this end, we develop a model of education in which individuals face educational risk and wage...

Persistent link: https://www.econbiz.de/10010274838

Incentives for environmental R&D

Greaker, Mads; Hoel, Michael - 2011

Since governments can influence the demand for a new abatement technology through their environmental policy, they may be able to expropriate innovations in new abatement technology ex post. This suggests that incentives for environmental R&D may be lower than the incentives for market goods...

Persistent link: https://www.econbiz.de/10010274844

Booms and busts: New Keynesian and behavioral explanations

De Grauwe, Paul - 2010

in economic growth. Every macro-economic theory should attempt to explain these endemic business cycle movements. In this …

Persistent link: https://www.econbiz.de/10010274846