Bidding challenges learning theories. Even with the same bid, experiences vary stochastically: the same choice can result in either a gain or a loss. In such an environment, the question arises of how the nearly universally documented phenomenon of loss aversion affects the adaptive dynamics. We...

We report the results of a field experiment evaluating the impact of financial literacy training on teenagers between 14 and 16 years in German high schools. After the training, treated teenagers exhibit a significant increase in both interest in financial matters and self-assessed knowledge...

The article illustrates how the integration of modern theory of finance and stochastic dynamic macroeconomic analysis provides a deeper understanding of the link between asset prices and consumption. It shows that this approach gives only a partial explanation for recent trends in US...

Terrorist models often focus on one kind of agent as well as one motive to pursue terrorism. Our model diverges from such standard approaches by taking account of the reasoning of the terrorist-organization leader as well as the reasoning of the individual terrorist. This allows us to observe...

A new point estimator for the AR(1) coefficient in the linear regression model with arbitrary exogenous regressors and stationary AR(1) disturbances is developed. Its construction parallels that of the median‐unbiased estimator, but uses the mode as a measure of central tendency. The...

Identifying the impact of local firm concentration on individual firm performance is likely to produce a selection bias related to the positive effects of local concentration if agglomeration economies and natural advantages coincide. We overcome this problem by exploiting exogenous variation...

In January 2005, the German Supreme Court permitted the state governments to charge tuition fees. By exploiting the natural experiment, we examine how government ideology influenced tuition fee policy. The results show that right-wing governments were active in introducing tuition fees. By...

Geringqualifizierte haben in Deutschland ein weitaus höheres Risiko arbeitslos zu werden als Fachkräfte. Kann ein subventionierter Niedriglohnsektor - wie er derzeit im Bündnis für Arbeit diskutiert wird - zur Lösung ihres Arbeitsplatzproblems beitragen? In welchem Umfang werden...

In this paper we give an overview, with special emphasis on Germany, of the recent development of the market for venture capital. We analyse the financial contracting problems that arise when entrepreneurs need capital from outside investors, and demonstrate how these problems are addressed by...