A Fast Literature Search Engine based on top-quality journals, by Dr. Mingze Gao.
- Topic classification is ongoing.
- Please kindly let me know [mingze.gao@mq.edu.au] in case of any errors.
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Results 556 resources
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We develop a version of Afriat's theorem that is applicable in a variety of choice environments beyond the setting of classical consumer theory. This allows us to devise tests for rationalizability in environments where the set of alternatives is not the positive orthant of a Euclidean space and where the rationalizing utility function is required to satisfy properties appropriate to that environment. We show that our results are applicable, amongst others, to choice data on lotteries, contingent consumption, and intertemporal consumption.
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This paper proposes a new measure of the disincentive cost of unemployment insurance (UI): the ratio of the behavioral cost (BC) to the mechanical cost (MC) of a UI reform. This measure represents the labor supply distortion relative to the additional (mechanical) transfer from the UI reform. We show the BC/MC ratio naturally arises from a model of optimal UI and can be readily computed and compared across different types of reforms and labor market contexts. We summarize the evidence regarding the BC/MC ratio for existing studies and relate it to typical measures of employment effects of UI.
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I review the role of a new behavioral trait, competitiveness, on the gender agenda. I first describe how to measure competitiveness in the laboratory and show that gender differences in competitiveness are robust. I then establish the external economic relevance of the experimental measure of competitiveness: competitiveness correlates with education and labor market outcomes and can help account for gender differences therein. Finally, institutions can differ in the importance they place on competitiveness and hence can affect gender differences in economic outcomes. Exploring these institutional differences and their effects remains an open area of behavioral market design.
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This paper studies the impact of the confirmatory bias on financial markets. We propose a model in which some traders may ignore new evidence inconsistent with their favorite hypothesis regarding the state of the world. The confirmatory bias provides a unified rationale for several existing stylized facts, including excess volatility, excess volume, and momentum. It also delivers novel predictions for which we find empirical support using data on analysts’ earnings forecasts: traders update beliefs depending on the sign of past signals and previous beliefs, and, at the stock level, differences of opinion are larger when past signals have different signs.
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We attempted to replicate 67 macroeconomic papers using author-provided data and code files by following a preanalysis plan. Excluding 6 papers that used confidential data, we obtained data and code replication files for 29 of 35 papers (83 percent) that were required to provide such files as a condition of publication, compared to 11 of 26 papers (42 percent) that were not required to provide such files. Also excluding the 2 papers that used software we did not possess, we replicated 29 of 59 papers (49 percent) with assistance from the authors. We conclude with recommendations on improving replication of economics research.
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We make a two-pronged proposal to (i) strengthen the incentives for replication work and (ii) better organize and draw attention to the replications that are conducted. First we propose that top journals publish short "replication reports." These reports could summarize novel work replicating an existing high-impact paper, or they could highlight a replication result embedded in a wider-scope published paper. Second, we suggest incentivizing replications with the currency of our profession: citations. Enforcing a norm of citing replication work alongside the original would provide incentives for replications to both authors and journals.
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We propose a new method to estimate the bid-ask spread when quote data are not available. Compared to other low-frequency estimates, this method utilizes a wider information set, namely, readily available close, high, and low prices. In the absence of end-of-day quote data, this method generally provides the highest cross-sectional and average time-series correlations with the TAQ effective spread benchmark. Moreover, it delivers the most accurate estimates for less liquid stocks. Our estimator has many potential applications, including an accurate measurement of transaction cost, systematic liquidity risk, and commonality in liquidity for U.S. stocks dating back almost one century.
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We estimate a model of illicit drugs markets using data on purchases of crack cocaine. Buyers are searching for high-quality drugs, but they determine drugs' quality (i.e., their purity) only after consuming them. Hence, sellers can rip off first-time buyers or can offer higher-quality drugs to induce buyers to purchase from them again. In equilibrium, a distribution of qualities persists. The estimated model implies that if drugs were legalized, in which case purity could be regulated and hence observable, the average purity of drugs would increase by approximately 20 percent and the dispersion would decrease by approximately 80 percent. Moreover, increasing penalties may raise the purity and affordability of the drugs traded by increasing sellers' relative profitability of targeting loyal buyers versus first-time buyers.
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Crowdfunding provides innovation in enabling entrepreneurs to contract with consumers before investment. Under aggregate demand uncertainty, this improves screening for valuable projects. Entrepreneurial moral hazard and private cost information threatens this benefit. Crowdfunding's after-markets enable consumers to actively implement deferred payments and thereby manage moral hazard. Popular crowdfunding platforms offer schemes that allow consumers to do so through conditional pledging behavior. Efficiency is sustainable only if expected returns exceed an agency cost associated with the entrepreneurial incentive problems. By reducing demand uncertainty, crowdfunding promotes welfare and complements traditional entrepreneurial financing, which focuses on controlling moral hazard.
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Journals
- American Economic Review (263)
- Journal of Finance (64)
- Journal of Financial Economics (121)
- Review of Financial Studies (108)
Topic
- Bond (25)
- CEO (16)
- Director (6)
- Mergers and Acquisitions (5)
- Capital Structure (2)
Resource type
- Journal Article (556)