A Fast Literature Search Engine based on top-quality journals, by Dr. Mingze Gao.
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- Please kindly let me know [mingze.gao@mq.edu.au] in case of any errors.
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Results 518 resources
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Many of the facts about the extensive margin of trade—which firms export, and how many products are sent to how many destinations—are consistent with a surprisingly large class of trade models because of the sparse nature of trade data. We propose a statistical model to account for sparsity, formalizing the assignment of trade shipments to country, product, and firm categories as balls falling into bins. The balls-and-bins model quantitatively reproduces the pattern of zero product- and firm-level trade flows across export destinations, and the frequency of multiproduct, multidestination exporters. In contrast, balls-and-bins overpredicts the fraction of exporting firms.
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We consider a growth model in which intergenerational transfersare made via stocks of private and public capital. Private capital isthe outcome of individuals' private savings while decisions regarding public capital are made collectively. We hypothesize that private saving choices evolve through individual selection while publicsaving decisions are the result of group selection. The main resultof the paper is that the equilibrium rate of return to private capital is at least 2-3% more than the rate of return to public capital.In other words, social choices involving intertemporal trade-offsexhibit much more patience than individual choices do.
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Administrative data from a large and diverse community college are used to examine if underrepresented minority students benefit from taking courses with underrepresented minority instructors. To identify racial interactions we estimate models that include both student and classroom fixed effects and focus on students with limited choice in courses. We find that the performance gap in terms of class dropout rates and grade performance between white and underrepresented minority students falls by 20 to 50 percent when taught by an underrepresented minority instructor. We also find these interactions affect longer term outcomes such as subsequent course selection, retention, and degree completion.
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This paper considers the role of high-frequency trading in a dynamic limit order market. Fast traders׳ ability to revise their quotes quickly after news arrivals helps to reduce the inefficiency that is rooted in the risk of being picked off, which increases trade. However, their presence induces slow traders to strategically submit limit orders with a lower execution probability, thereby reducing trade. Because speed is a source of market power, it enables fast traders to extract rents from other market participants and triggers a costly arms race that reduces social welfare. The model generates a number of testable implications concerning the effects of high-frequency trading in limit order markets.
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The converging roles of men and women are among the grandestadvances in society and the economy in the last century. Theseaspects of the grand gender convergence are figurative chapters ina history of gender roles. But what must the "last" chapter containfor there to be equality in the labor market? The answer may comeas a surprise. The solution does not (necessarily) have to involvegovernment intervention and it need not make men more responsiblein the home (although that wouldn't hurt). But it must involvechanges in the labor market, especially how jobs are structured andremunerated to enhance temporal flexibility. The gender gap in paywould be considerably reduced and might vanish altogether if firmsdid not have an incentive to disproportionately reward individualswho labored long hours and worked particular hours. Such changehas taken off in various sectors, such as technology, science, andhealth, but is less apparent in the corporate, financial, and legalworlds.
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This article studies the full equilibrium dynamics of an economy withfinancial frictions. Due to highly nonlinear amplification effects, theeconomy is prone to instability and occasionally enters volatile crisisepisodes. Endogenous risk, driven by asset illiquidity, persistsin crisis even for very low levels of exogenous risk. This phenomenon,which we call the volatility paradox, resolves the Kocherlakota(2000) critique. Endogenous leverage determines the distance to crisis.Securitization and derivatives contracts that improve risk sharingmay lead to higher leverage and more frequent crises.
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Mean-variance portfolio theory can apply to streams of payoffs such as dividends following an initial investment. This description is useful when returns are not independent over time and investors have nonmarketed income. Investors hedge their outside income streams. Then, their optimal payoff is split between an indexed perpetuity—the risk-free payoff—and a long-run mean-variance efficient payoff. “Long-run” moments sum over time as well as states of nature. In equilibrium, long-run expected returns vary with long-run market betas and outside-income betas. State-variable hedges do not appear.
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We model a loop between sovereign and bank credit risk. A distressed financial sector induces government bailouts, whose cost increases sovereign credit risk. Increased sovereign credit risk in turn weakens the financial sector by eroding the value of its government guarantees and bond holdings. Using credit default swap (CDS) rates on European sovereigns and banks, we show that bailouts triggered the rise of sovereign credit risk in 2008. We document that post-bailout changes in sovereign CDS explain changes in bank CDS even after controlling for aggregate and bank-level determinants of credit spreads, confirming the sovereign-bank loop.
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We quantitatively investigate the allocative and welfare effects ofsecondary markets for cars. An important source of gains fromtrade in these markets is the heterogeneity in the willingness topay for higher-quality (newer) goods, but transaction costs are animpediment to instantaneous trade. Calibration of the model successfully matches several aggregate features of the U.S. and French used-car markets. Counterfactual analyses show that transaction costs have a large effect on volume of trade, allocations, and the primary market. Aggregate effects on consumer surplus and welfare are relatively small, but the effect on lower-valuation households can be large.
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During the downturn of 2008–2009, output and hours fell significantly, but labor productivity rose. These facts have led many to conclude that there is a significant deviation between observations and current macrotheories that assume business cycles are driven, at least in part, by fluctuations in total factor productivities of firms. We show that once investment in intangible capital is included in the analysis, there is no inconsistency. Measured labor productivity rises if the fall in output is underestimated; this occurs when there are large unmeasured intangible investments. Microevidence suggests that these investments are large and cyclically important.
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Journals
- American Economic Review (252)
- Journal of Finance (71)
- Journal of Financial Economics (102)
- Review of Financial Studies (93)
Topic
- Bond (26)
- CEO (16)
- Director (15)
- Mergers and Acquisitions (9)
- Capital Structure (7)
Resource type
- Journal Article (518)