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Fixing the investment horizon, the returns to currency carry trades decrease as the maturity of the foreign bonds increases, because the local currency term premia offset the currency risk premia. The time series predictability of foreign bond returns in dollars similarly declines with the...
Persistent link: https://www.econbiz.de/10012938280
This paper presents new evidence on why unemployment insurance (UI) benefits affect search behavior and develops a simple method of calculating the welfare gains from UI using this evidence. I show that 60 percent of the increase in unemployment durations caused by UI benefits is due to a...
Persistent link: https://www.econbiz.de/10012759356
, a constant tax during employment that does not depend on the duration of the spell, and free access to savings using a … against the uncertain duration of unemployment spells …
Persistent link: https://www.econbiz.de/10012770839
Individuals typically traverse several life phases before forming a family. We analyse whether changing the duration of … affect family formation through human capital accumulation, but also through changing the duration of earlier life phases …. This is important as not only age at marriage and first birth increases in many countries, but also the duration of the …
Persistent link: https://www.econbiz.de/10012823381
Persistent link: https://www.econbiz.de/10012873075
Persistent link: https://www.econbiz.de/10012874158
This paper proposes a structural approach to measuring the effects of electoral accountability. We estimate a political agency model with imperfect information in order to identify and quantify discipline and selection effects, using data on U.S. governors. We find that the possibility of...
Persistent link: https://www.econbiz.de/10012971845
This paper introduces the Markov-Switching Multifractal Duration (MSMD) model by adapting the MSM stochastic volatility … model of Calvet and Fisher (2004) to the duration setting. Although the MSMD process is exponential� beta-mixing as we show …-memory duration models in an out-of-sample forecasting exercise based on price durations of three major foreign exchange futures …
Persistent link: https://www.econbiz.de/10012975128
The key assumption in regression discontinuity analysis is that the distribution of potential outcomes varies smoothly with the running variable around the cutoff. In many empirical contexts, however, this assumption is not credible; and the running variable is said to be manipulated in this...
Persistent link: https://www.econbiz.de/10012978088
unemployment insurance on unemployment duration in Brazil, where we find strong evidence of manipulation at eligibility cutoffs …
Persistent link: https://www.econbiz.de/10013001869