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Strategic choice of preferences: The persona model

Wolpert, David H.; Jamison, Julian; Newth, David; … - 2010

We introduce a modification to the two-timescale games studied in the evolution of preferences (EOP) literature. In this modification, the strategic process occurring on the long timescale is learning by an individual across his or her lifetime, not natural selection operating on genomes over...

Persistent link: https://www.econbiz.de/10010280880

Productivity, welfare, and reallocation: Theory and firm-level evidence

Basu, Susanto; Pascali, Luigi; Schiantarelli, Fabio; … - 2009

We prove that the change in welfare of a representative consumer is summarized by the current and expected future values of the standard Solow productivity residual. The equivalence holds if the representative household maximizes utility while taking prices parametrically. This result justifies...

Persistent link: https://www.econbiz.de/10010280884

Doing good or doing well? Image motivation and monetary incentives in behaving prosocially

Ariely, Dan; Bracha, Anat; Meier, Stephan - 2007

This paper examines image motivationthe desire to be liked and well-regarded by others as a driver in prosocial behavior (doing good), and asks whether extrinsic monetary incentives (doing well) have a detrimental effect on prosocial behavior due to crowding out of image motivation. By...

Persistent link: https://www.econbiz.de/10010280888

Estimation of forward-looking relationships in closed form: An application to the new Keynesian Phillips curve

Barnes, Michelle L.; Gumbau-Brisa, Fabià; Lie, Denny; … - 2011

We illustrate the importance of placing model-consistent restrictions on expectations in the estimation of forward-looking Euler equations. In two-stage limited-information settings where first-stage estimates are used to proxy for expectations, parameter estimates can differ substantially,...

Persistent link: https://www.econbiz.de/10010280894

The optimal level of deposit insurance coverage

Manz, Michael - 2009

This paper develops a global game model that allows for a rigorous analysis of partial deposit insurance and provides the first comparative statics of the optimal level of deposit coverage. The optimal amount of coverage increases with lower bank liquidity requirements, with a higher precision...

Persistent link: https://www.econbiz.de/10010280895

In search of real rigidities

Gopinath, Gita; Itskhoki, Oleg - 2010

paper brings the two literatures together. We use international price data and exchange rate shocks to evaluate the … importance of real rigidities in price setting. We show that, consistent with the presence of real rigidities, the response of … reset-price inflation to exchange rate shocks exhibits significant persistence. Individual import prices, conditional on …

Persistent link: https://www.econbiz.de/10010280896

The liquidity trap, the real balance effect, and the Friedman rule

Ireland, Peter N. - 2005

This paper studies the behavior of the economy and the efficacy of monetary policy under zero nominal interest rates, using a model with population growth that nests, as a special case, a more conventional specification in which there is a single infinitely lived representative agent. The paper...

Persistent link: https://www.econbiz.de/10010280901

Efficient organization of production: Nested versus horizontal outsourcing

Shy, Oz; Stenbacka, Rune - 2009

The authors characterize equilibrium and efficient modes of production by comparing nested (vertical) outsourcing with horizontal outsourcing. Nested outsourcing is found to be inefficient unless the cost of monitoring outsourced production lines increases sharply with the number of...

Persistent link: https://www.econbiz.de/10010280908

Social and private learning with endogenous decision timing

Jamison, Julian; Owens, David; Woroch, Glenn A. - 2009

Firms often face choices about when to upgrade and what to upgrade to. We discuss this in the context of upgrading to a new technology (for example, a new computer system), but it applies equally to the upgrading of processes (for example, a new organizational structure) or to individual choices...

Persistent link: https://www.econbiz.de/10010280918

Empirical estimates of changing inflation dynamics

Fuhrer, Jeff; Olivei, Giovanni; Tootell, Geoffrey M. B. - 2009

, centering on the persistent pass-through" of relative price changes into core and headline inflation measures, and a parallel … exercise that examines the pass-through of key relative price changes into wage and compensation measures. …

Persistent link: https://www.econbiz.de/10010280920