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Identification and estimation of thresholds in the fixed effects ordered logit model

Baetschmann, Gregori - 2011

The paper proposes a new estimator for the fixed effects ordered logit model. In contrast to existing methods, the new procedure allows estimating the thresholds. The empirical relevance and simplicity of implementation is illustrated in an application to the effect of unemployment on life...

Persistent link: https://www.econbiz.de/10010316876

The French Great Depression: A business cycle accounting analysis

Bridji, Slim - 2012

Using the business cycle accounting framework [Chari V., P. Kehoe and E. McGrattan 2007. Business Cycle Accounting. Econometrica 75, 781-836.], this paper sheds new light on the French Great Depression. Frictions that reduce the efficiency with which factor inputs are used (efficiency wedge)...

Persistent link: https://www.econbiz.de/10010316878

Communication & competition

Goeree, Jacob K.; Zhang, Jingjing - 2012

Charness and Dufwenberg (American Economic Review, June 2011, 1211-1237) have recently demonstrated that cheap-talk communication raises efficiency in bilateral contracting situations with adverse selection. We replicate their finding and check its robustness by introducing competition between...

Persistent link: https://www.econbiz.de/10010316885

Stabilizing the economy: Market design and general equilibrium

Goeree, Jacob K.; Lindsay, Luke - 2012

Review, 1960). Tatonnement theory predicts that prices are globally unstable for this economy, i.e. unless prices start at … the competitive equilibrium they oscillate without converging. Anderson et al. (Journal of Economic Theory, 2004) report … convergence. We replicate their experiments and confirm that tatonnement theory predicts the direction of price changes remarkably …

Persistent link: https://www.econbiz.de/10010316891

A geometric approach to mechanism design

Goeree, Jacob K.; Kushnir, Alexey - 2011

theory. The optimal mechanism can subsequently be derived from the support function using Hotelling's lemma. We first assume …

Persistent link: https://www.econbiz.de/10010316902

On the equivalence of Bayesian and dominant strategy implementation in a general class of social choice problems

Goeree, Jacob K.; Kushnir, Alexey - 2011

We consider a standard social choice environment with linear utilities and independent, one-dimensional, private values. We provide a short and constructive proof that for any Bayesian incentive compatible mechanism there exists an equivalent dominant strategy incentive compatible mechanism that...

Persistent link: https://www.econbiz.de/10010316903

Specification and estimation of rating scale models: With an application to the determinants of life satisfaction

Studer, Raphael; Winkelmann, Rainer - 2011

This article proposes a new class of rating scale models, which merges advantages and overcomes shortcomings of the traditional linear and ordered latent regression models. Both parametric and semi-parametric estimation is considered. The insights of an empirical application to satisfaction data...

Persistent link: https://www.econbiz.de/10010316906

All-pay auctions: Implementation and optimality

Jönsson, Stefan; Schmutzler, Armin - 2013

This paper analyzes how all-pay auctions with endogenous prizes can be used to provide effort incentives. We show that wide classes of effort distributions can be implemented as equilibrium outcomes of such games. We also ask how all-pay auctions have to be structured so as to induce high...

Persistent link: https://www.econbiz.de/10010316920

Uncertain demand, consumer loss aversion, and flat-rate tariffs

Herweg, Fabian; Mierendorff, Konrad - 2011

We consider a model of firm pricing and consumer choice, where consumers are loss averse and uncertain about their future demand. Possibly, consumers in our model prefer a flat rate to a measured tariff, even though this choice does not minimize their expected billing amount - a behavior in line...

Persistent link: https://www.econbiz.de/10010316924

Em-powering economics: Some thoughts on policy and financial markets

Falkinger, Josef - 2012

This paper addresses the discussion between economic power and the power of politics with particular focus on financial markets. After general reflections about the economic basis of power, the paper discusses in a general equilibrium framework how financial innovations can lead to risk creation...

Persistent link: https://www.econbiz.de/10010316928