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de Martí, Joan; Zenou, Yves - 2009

We survey the literature on social networks by putting together the economics, sociological and physics/applied mathematics approaches, showing their similarities and differences. We expose, in particular, the two main ways of modeling network formation. While the physics/applied mathematics...

Persistent link: https://www.econbiz.de/10010275834

A note on the computation of the equity premium and the market value of firm equity

Heer, Burkhard; Maußner, Alfred - 2010

Turnovsky (1995) derives in a continuous-time model of a decentralized economy that the correct specification of the firm's objective function is to maximize the initial value of its outstanding securities. The firm value is the discounted flow of real earnings. For the discrete-time version of...

Persistent link: https://www.econbiz.de/10010275839

Gauging risk with higher moments: Handrails in measuring and optimising conditional value at risk

Bugár, Gyöngyi; Maurer, Raimond H.; Vo, Huy Thanh - 2009

The aim of the paper is to study empirically the influence of higher moments of the return distribution on conditional value at risk (CVaR). To be more exact, we attempt to reveal the extent to which the risk given by CVaR can be estimated when relying on the mean, standard deviation, skewness...

Persistent link: https://www.econbiz.de/10010275840

Are European regional policies delivering?

Martin, Philippe J. - In: EIB Papers 4 (1999) 2, pp. 10-23

increase efficiency at the national and European levels and to decrease inequalities between countries. This paper argues that … these policies face a trade-off between equity and efficiency at the spatial level. If the existence of positive localised … positive efficiency effects. We also argue that because infrastructure financed by regional policies have an impact on …

Persistent link: https://www.econbiz.de/10010275843

The role of public policy in the process of regional convergence

Martin, Philippe J. - In: EIB Papers 5 (2000) 2, pp. 69-79

development. Public intervention is usually defended on either efficiency or equity grounds. In the case of economic geography, a … justification in terms of efficiency implies identifying the various market failures, specific to the issue of space, that make the … public intervention on efficiency grounds. Whereas this type of analysis has been standard for public intervention in the …

Persistent link: https://www.econbiz.de/10010275844

Time-consistent fiscal policy under heterogeneity: Conflicting or common interests?

Angelopoulos, Konstantinos; Malley, James R.; … - 2011

This paper studies the aggregate and distributional implications of Markov-perfect taxspending policy in a neoclassical growth model with capitalists and workers. Focusing on the long run, our main findings are: (i) it is optimal for a benevolent government, which cares equally about its...

Persistent link: https://www.econbiz.de/10010275851

Fear of model misspecification and the robustness premium

Angelopoulos, Konstantinos; Malley, James R. - 2010

time relative to that of human capital. When the relative efficiency of time is low, despite transitory welfare costs …

Persistent link: https://www.econbiz.de/10010275852

Log-normal approximation of the equity premium in the production model

Heer, Burkhard; Maußner, Alfred - 2010

The conditional equity premium in the model with production is often approximated by assuming a jointly log-normal distribution of the marginal rate of substitution in consumption and the marginal productivity of capital. We show that, for standard parameterization, this premium is about one...

Persistent link: https://www.econbiz.de/10010275855

Strategic Wage Setting and Coordination Frictions with Multiple Applications

Gautier, Pieter A.; Moraga-González, José Luis - 2004

socially excessive number of applications; and (vii) the only way to obtain efficiency is to impose a mandatory wage that …

Persistent link: https://www.econbiz.de/10010275862

Platform intermediation in a market for differentiated products

Galeotti, Andrea; Moraga-González, José Luis - 2008

We study a two-sided market where a platform attracts firms selling differentiated products and buyers interested in those products. In the unique subgame perfect equilibrium of the game, the platform fully internalizes the network externalities present in the market and firms and consumers all...

Persistent link: https://www.econbiz.de/10010275870