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I use a simple computer simulation model to gain insights on the nature of wealth inequality. Two testable predictions come out of the simulations: economies with higher tax rates and lower volatility should have lower inequality levels, all else constant. Another important feature of the model...
Persistent link: https://www.econbiz.de/10013015245
I analyze whether or not a monitoring problem regarding abroad abatement can justify the import quotas on abroad emission certificates applied by several emission trading schemes. For this purpose I extend the Becker (1968) Crime and Punishment model by heterogeneity in the observability of...
Persistent link: https://www.econbiz.de/10013015264
A common issue with regard to a research project is to identify the adequate research method for determining the number of factors in the growing literature on multifactor models (Bai and Ng, 2002). This paper intends to provide a synopsis on the existing different methods and the associated issues
Persistent link: https://www.econbiz.de/10013015275
eluded explanation. The account also has broader implications for private law theory. First, it suggests that asking whether …
Persistent link: https://www.econbiz.de/10013015286
We formulate a trade execution problem at the market microstructure level and solve it using dynamic programming. The objective is to sell a single lot of an asset in a short time horizon T, using the imbalance of the top of book bid and ask sizes as a price predictor. The optimization problem...
Persistent link: https://www.econbiz.de/10013015290
Like options on stocks, options on commodities provide firms with protection against adverse price movements. Many firms procure commodity at an offshore location and transport it via ocean freight. Increased globalization and increased demand for ocean-based transportation has resulted in ocean...
Persistent link: https://www.econbiz.de/10013015305
We study the welfare effects of non-binding advance price announcements. Applying a differentiated Bertrand model with horizontal products and asymmetric information, we find that such announcements can help firms to gain information on each other thereby allowing them to achieve higher profits....
Persistent link: https://www.econbiz.de/10013015315
We present a new behavioral foundation for regret theory. The central axiom of this foundation — trade-off consistency … — renders regret theory observable at the individual level and makes our foundation consistent with the existing measurement … method. For the first time, our behavioral foundation allows deriving a continuous regret theory representation and …
Persistent link: https://www.econbiz.de/10013015316
educational supply side. In the real world, both types of expectations adjust to each other in processes that clear imbalances …
Persistent link: https://www.econbiz.de/10013015327
model with monopolistic competition, a symmetric economy, the inflation conflict theory and the target profit share of firms …
Persistent link: https://www.econbiz.de/10013015333