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Essays On Risk And Incentives, Russell Engel
Essays On Risk And Incentives, Russell Engel
WCBT Faculty Publications
I use economic experiments to investigate individual behavior under uncertainty. The first essay examines the consistency of risk preferences over two institutions. The two institutions I use are the first price sealed bid auction and a Holt-Laury lottery. There is some controversy as to whether or not observed overbidding in first price auction is actually caused by risk aversion or simply consistent with it. Behavior in the Holt-Laury lottery being caused by risk aversion is not in dispute. By having the same subjects participate in both institutions, I show that subjects.risk preferences in the lottery are consistent with subjects' risk …
Monetary Convergence And Risk Premiums In The Eu Accession Countries, Lucjan Orlowski
Monetary Convergence And Risk Premiums In The Eu Accession Countries, Lucjan Orlowski
WCBT Faculty Publications
This study examines the impact of various monetary policy regimes on the ability to lower inflation and exchange rate risk premiums in the EU accession countries as they undergo monetary convergence to the eurozone. It proposes a monetary policy framework of flexible targeting of relative inflation risk premium that is believed to be credible and useful for managing these two categories of risk. A model of inflation and exchange rate risk premiums within the context of inflation targeting is developed. Recent trends in these risk premiums in Hungary, the Czech Republic and Poland are tested by employing the threshold ARCH …