We provide a framework for analyzing a range of well-documented non-Bayesian behaviors including base rate neglect, conjunction fallacy and disjunction fallacy. The model that we propose formally links the concept of similarity in theoretical psychology with belief updating. We follow Kahneman...

COVID-19 devastated the US labor market threatening homeowners’ ability to stay current on their mortgage. During the Great Recession, payment relief was more difficult to come by whereas the Coronavirus Aid, Relief, and Economic Security (CARES) Act provided most impacted homeowners with up...

This study assesses the impact of corporate board reforms affect firms’ financial reporting practices. Using a sample of 40 countries and employing a difference-in-differences design, we find that corporate board reforms lead to a reduction in firms' real earnings manipulation and...

This paper investigates the source of bilateral trade imbalance at industry level. We build a simple model based on gravity theory and derive the prediction that the bilateral trade balance in an industry is increasing in the difference between trading partners in the output share of the...

This paper presents theory and empirical evidence on that a forward-looking potential importer facing sunk costs will respond to expectation of future exchange rate fluctuations. This finding indicates the importance of sunk costs in firms' decisions to import goods. Building upon a...

In this study, vermiculite powder was used as a particle electrode for a three-dimensional (3D) electrochemical degradation of doxycycline (DOX) combining with peroxymonosulfate (PMS) activation. The effects of operational parameters (such as vermiculite dosage, PMS concentration, initial pH,...

This paper simulates the GDP spillover effects between China and U.S. caused by the implementation of different climate protection policies. It is based on a combination of several climate protection models, which are the State-contingent Model and the Demeter Model, and the GDP Spillovers...