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Individual sense of fairness: An experimental study

Karni, Edi; Salmon, Timothy C.; Sopher, Barry - 2001

This paper presents an experimental test of the theory of individual sense of fairness of Karni and Safra (2000 …). According to this theory individuals' choice among random procedures designed to allocate indivisible goods is motivated, in … the chord thereby trading off some of their own chance of winning for a fairer allocation procedure. The results indicate …

Persistent link: https://www.econbiz.de/10010318333

Understanding the development of fundamentalism

Epstein, Gil S.; Gang, Ira N. - 2002

understanding the principles of groups’ formation, development and growth. We use economic theory to explain the creation and … development of fundamentalist groups. In this paper we develop a theory of fundamentalism and terrorism under which leaders …

Persistent link: https://www.econbiz.de/10010318337

Optimal fiscal and monetary policy under sticky prices

Schmitt-Grohé, Stephanie; Uribe, Martín - 2001

Ramsey allocation when prices are flexible. The finding is in line with a recent body of work on optimal monetary policy …

Persistent link: https://www.econbiz.de/10010318338

Inequality, politics and economic growth

Chakrabarty, Debajyoti - 2000

The paper studies the relationship between inequality and economic growth. This is done in a two sector model of endogenous growth with agents characterized by heterogeneity of factor endowments. The private sector consists of a large number of competitive firms who produce the only final good...

Persistent link: https://www.econbiz.de/10010318339

Solving dynamic general equilibrium models using a second-order approximation to the policy function

Schmitt-Grohé, Stephanie; Uribe, Martín - 2001

This paper derives a second-order approximation to the solution of rational expectations, dynamic, general equilibrium models. To illustrate its applicability, the method is used to solve the dynamics of a simple neoclassical model. The paper closes with a brief description of a set of MATLAB...

Persistent link: https://www.econbiz.de/10010318340

The effects of mergers in open auction markets

Waehrer, Keith; Perry, Martin K. - 2002

The buyer solicits bids from suppliers with different cost distributions defined by their capacities. The expected market share of each supplier is the ratio of its capacity to the industry capacity. The buyer's optimal reserve price declines with increases in the concentration of the industry....

Persistent link: https://www.econbiz.de/10010318342

Optimal fiscal and monetary policy under imperfect competition

Schmitt-Grohé, Stephanie; Uribe, Martín - 2001

This paper studies optimal fiscal and monetary policy

Persistent link: https://www.econbiz.de/10010318348

An experiment on learning with limited information: Nonconvergence, experimentation cascades, and the advantage of being slow

Friedman, Eric; Shor, Mikhael; Shenker, Scott; Sopher, Barry - 2000

We present the results of an experiment on learning in a continuous-time low-information setting. For a Cournot oligopoly with differentiated products, a dominance solvable game, we find little evidence of convergence to the Nash equilibrium. In an asynchronous setting, play tends toward the...

Persistent link: https://www.econbiz.de/10010318349

Chaotic interest rate rules

Benhabib, Jess; Schmitt-Grohé, Stephanie; Uribe, Martín - 2001

A growing empirical and theoretical literature argues in favor of specifying monetary policy in the form of Taylor-type interest rate feedback rules. That is, rules whereby the nominal interest rate is set as an increasing function of inflation with a slope greater than one around an intended...

Persistent link: https://www.econbiz.de/10010318350

Monetary policy shocks in an economy with segmented markets

Occhino, Filippo - 2001

After a contractionary monetary policy shock, aggregate output decreases over time with a trough after a year and a half, while the real interest rate increases immediately, and remains high for about three quarters. A central step in the explanation is obtaining a persistent increase in the...

Persistent link: https://www.econbiz.de/10010318351