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Dynamic Mechanisms Without Money, Yingni Guo, Johannes Hörner Feb 2015

Dynamic Mechanisms Without Money, Yingni Guo, Johannes Hörner

Cowles Foundation Discussion Papers

We analyze the optimal design of dynamic mechanisms in the absence of transfers. The designer uses future allocation decisions as a way of eliciting private information. Values evolve according to a two-state Markov chain. We solve for the optimal allocation rule, which admits a simple implementation. Unlike with transfers, efficiency decreases over time, and both immiseration and its polar opposite are possible long-run outcomes. Considering the limiting environment in which time is continuous, we show that persistence hurts.


Estimating The Production Function For Human Capital: Results From A Randomized Control Trial In Colombia, Sarah Cattan, Emla Fitzsimons, Costas Meghir, Marta Rubio-Codina Feb 2015

Estimating The Production Function For Human Capital: Results From A Randomized Control Trial In Colombia, Sarah Cattan, Emla Fitzsimons, Costas Meghir, Marta Rubio-Codina

Cowles Foundation Discussion Papers

We examine the channels through which a randomized early childhood intervention in Colombia led to significant gains in cognitive and socio-emotional skills among a sample of disadvantaged children. We estimate production functions for cognitive and socio-emotional skills as a function of maternal skills and child’s past skills, as well as material and time investments that are treated as endogenous. The effects of the program can be fully explained by increases in parental investments, which have strong effects on outcomes and are complementary to both maternal skills and child’s past skills.


Estimating The Production Function For Human Capital: Results From A Randomized Control Trial In Colombia, Orazio P. Attanasio, Sarah Cattan, Emla Fitzsimons, Costas Meghir, Marta Rubio-Codina Feb 2015

Estimating The Production Function For Human Capital: Results From A Randomized Control Trial In Colombia, Orazio P. Attanasio, Sarah Cattan, Emla Fitzsimons, Costas Meghir, Marta Rubio-Codina

Cowles Foundation Discussion Papers

We examine the channels through which a randomized early childhood intervention in Colombia led to significant gains in cognitive and socio-emotional skills among a sample of disadvantaged children aged 12 to 24 months at baseline. We estimate the determinants of material and time investments in these children and evaluate the impact of the treatment on such investments. We then estimate the production functions for cognitive and socio-emotional skills. The effects of the program can be explained by increases in parental investments, which have strong effects on outcomes and are complementary to both maternal skills and child’s baseline skills.


Estimating The Production Function For Human Capital: Results From A Randomized Control Trial In Colombia, Orazio P. Attanasio, Sarah Cattan, Emla Fitzsimons, Costas Meghir, Marta Rubio-Codina Feb 2015

Estimating The Production Function For Human Capital: Results From A Randomized Control Trial In Colombia, Orazio P. Attanasio, Sarah Cattan, Emla Fitzsimons, Costas Meghir, Marta Rubio-Codina

Cowles Foundation Discussion Papers

We examine the channels through which a randomized early childhood intervention in Colombia led to significant gains in cognitive and socio-emotional skills among a sample of disadvantaged children aged 12 to 24 months at baseline. We estimate the determinants of parents’ material and time investments in these children and evaluate the impact of the treatment on such investments. We then estimate the production functions for cognitive and socio-emotional skills. The effects of the program can be explained by increases in parental investments, emphasizing the importance of parenting interventions at an early age.


Innovation Adoption By Forward-Looking Social Learners, Mira Frick, Yuhta Ishii Feb 2015

Innovation Adoption By Forward-Looking Social Learners, Mira Frick, Yuhta Ishii

Cowles Foundation Discussion Papers

Motivated by the rise of social media, we build a model studying the effect of an economy’s potential for social learning on the adoption of innovations of uncertain quality. Provided consumers are forward-looking (i.e., recognize the value of waiting for information), equilibrium dynamics depend non-trivially on qualitative and quantitative features of the informational environment. We identify informational environments that are subject to a saturation effect, whereby increased opportunities for social learning can slow down adoption and learning and do not increase consumer welfare. We also suggest a novel, purely informational explanation for different commonly observed adoption curves (S-shaped vs. concave).


Money As Minimal Complexity, Pradeep Dubey, Siddhartha Sahi, Martin Shubik Feb 2015

Money As Minimal Complexity, Pradeep Dubey, Siddhartha Sahi, Martin Shubik

Cowles Foundation Discussion Papers

We consider mechanisms that provide traders the opportunity to exchange commodity i for commodity j , for certain ordered pairs ij . Given any connected graph G of opportunities, we show that there is a unique mechanism M G that satisfies some natural conditions of “fairness” and “convenience.” Let M ( m ) denote the class of mechanisms M G obtained by varying G on the commodity set {1, …, m }. We define the complexity of a mechanism M in M (m) to be a pair of integers τ( M ), π( M ) which represent the “time” required …


Comparison Of China And Us Bank Reserves And Their Implications, Dai Daohua Feb 2015

Comparison Of China And Us Bank Reserves And Their Implications, Dai Daohua

Documents

No abstract provided.


Greek Economic Outlook 2015. Greek Banking Support Framework: A First Attempt, Christos Triantopoulos Feb 2015

Greek Economic Outlook 2015. Greek Banking Support Framework: A First Attempt, Christos Triantopoulos

Documents

No abstract provided.


Dynamic Moral Hazard Without Commitment, Johannes Hörner, Larry Samuelson Feb 2015

Dynamic Moral Hazard Without Commitment, Johannes Hörner, Larry Samuelson

Cowles Foundation Discussion Papers

We study a discrete-time model of repeated moral hazard without commitment. In every period, a principal finances a project, choosing the scale of the project and a contingent payment plan for an agent, who has the opportunity to appropriate the returns of a successful project unbeknownst the principal. The absence of commitment is reflected both in the solution concept (perfect Bayesian equilibrium) and in the ability of the principal to freely revise the project’s scale from one period to the next. We show that removing commitment from the equilibrium concept is relatively innocuous — if the players are sufficiently patient, …


Us Intervention During The Bretton Woods Era, 1962-1973, Michael D. Bordo, Owen Humpage, Anna Jacobson Schwartz Feb 2015

Us Intervention During The Bretton Woods Era, 1962-1973, Michael D. Bordo, Owen Humpage, Anna Jacobson Schwartz

Documents

No abstract provided.


Restructuring And Insolvency In Switzerland: Overview, Dieter Hofmann, Mark A. Reutter, Christoph Stäubli, Walder Wyss Ltd. Feb 2015

Restructuring And Insolvency In Switzerland: Overview, Dieter Hofmann, Mark A. Reutter, Christoph Stäubli, Walder Wyss Ltd.

Documents

No abstract provided.


Central Bank Collateral Frameworks, Kjell G. Nyborg Feb 2015

Central Bank Collateral Frameworks, Kjell G. Nyborg

Documents

Research Paper Series N°15-10


Competition Policy In The Framework And Application Of State Aid In The Banking Sector, Jochem De Kok Feb 2015

Competition Policy In The Framework And Application Of State Aid In The Banking Sector, Jochem De Kok

Documents

No abstract provided.


Unbiased Instrumental Variables Estimation Under Known First-Stage Sign, Isaiah Andrews, Timothy B. Armstrong Feb 2015

Unbiased Instrumental Variables Estimation Under Known First-Stage Sign, Isaiah Andrews, Timothy B. Armstrong

Cowles Foundation Discussion Papers

We derive mean-unbiased estimators for the structural parameter in instrumental variables models with a single endogenous regressor where the sign of one or more first stage coefficients is known. In the case with a single instrument, the unbiased estimator is unique. For cases with multiple instruments we propose a class of unbiased estimators and show that an estimator within this class is efficient when the instruments are strong. We show numerically that unbiasedness does not come at a cost of increased dispersion in models with a single instrument: in this case the unbiased estimator is less dispersed than the 2SLS …


Unbiased Instrumental Variables Estimation Under Known First-Stage Sign, Isaiah Andrews, Timothy B. Armstrong Feb 2015

Unbiased Instrumental Variables Estimation Under Known First-Stage Sign, Isaiah Andrews, Timothy B. Armstrong

Cowles Foundation Discussion Papers

We derive mean-unbiased estimators for the structural parameter in instrumental variables models where the sign of one or more first stage coefficients is known. In the case with a single instrument, the unbiased estimator is unique. For cases with multiple instruments we propose a class of unbiased estimators and show that an estimator within this class is efficient when the instruments are strong while retaining unbiasedness in finite samples. We show numerically that unbiasedness does not come at a cost of increased dispersion: in the single instrument case, the unbiased estimator is less dispersed than the 2SLS estimator. Our finite-sample …


Estimating The Production Function For Human Capital: Results From A Randomized Control Trial In Colombia, Orazio P. Attanasio, Sarah Cattan, Emla Fitzsimons, Costas Meghir, Marta Rubio-Codina Feb 2015

Estimating The Production Function For Human Capital: Results From A Randomized Control Trial In Colombia, Orazio P. Attanasio, Sarah Cattan, Emla Fitzsimons, Costas Meghir, Marta Rubio-Codina

Cowles Foundation Discussion Papers

We examine the channels through which a randomized early childhood intervention in Colombia led to significant gains in cognitive and socio-emotional skills among a sample of disadvantaged children aged 12 to 24 months at baseline. We estimate the determinants of parents’ material and time investments in these children and evaluate the impact of the treatment on such investments. We then estimate the production functions for cognitive and socio-emotional skills. The effects of the program can be explained by increases in parental investments, emphasizing the importance of parenting interventions at an early age.


Ákvarðanir Fjármálaeftirlitsins Um Ráðstöfun Eigna Og Skulda Viðskiptabanka Í Kjölfar Fjármálaáfallsins 2008, Central Bank Of Iceland Jan 2015

Ákvarðanir Fjármálaeftirlitsins Um Ráðstöfun Eigna Og Skulda Viðskiptabanka Í Kjölfar Fjármálaáfallsins 2008, Central Bank Of Iceland

Documents

No abstract provided.


January 2015 Office Of The Special Inspector General For The Troubled Asset Relief Program (Sigtarp) Quarterly Report, United States: Office Of The Special Inspector General For The Tarp Jan 2015

January 2015 Office Of The Special Inspector General For The Troubled Asset Relief Program (Sigtarp) Quarterly Report, United States: Office Of The Special Inspector General For The Tarp

Documents

No abstract provided.


The Legacy Of Tarp's Bank Bailout Known As The Capital Purchase Program, United States: Office Of The Special Inspector General For The Tarp Jan 2015

The Legacy Of Tarp's Bank Bailout Known As The Capital Purchase Program, United States: Office Of The Special Inspector General For The Tarp

Documents

No abstract provided.


Federal Open Market Committee Authorization For Foreign Currency Operations, Federal Reserve System: Board Of Governors: Federal Open Market Committee (Fomc) Jan 2015

Federal Open Market Committee Authorization For Foreign Currency Operations, Federal Reserve System: Board Of Governors: Federal Open Market Committee (Fomc)

Documents

No abstract provided.


Government Assistance For Gmac/Ally Financial, Baird Webel, Bill Canis Jan 2015

Government Assistance For Gmac/Ally Financial, Baird Webel, Bill Canis

Documents

U.S. Auto Industry Bailout: General Motors Acceptance Corporation (GMAC)


Government Assistance For Gmac/Ally Financial: Unwinding The Government Stake, Baird Webel, Bill Canis Jan 2015

Government Assistance For Gmac/Ally Financial: Unwinding The Government Stake, Baird Webel, Bill Canis

Documents

No abstract provided.


Russia Details Bank Recapitalization Scheme, Reuters Staff Jan 2015

Russia Details Bank Recapitalization Scheme, Reuters Staff

Documents

No abstract provided.


European Central Bank Introductory Statement To The Press Conference, Mario Draghi Jan 2015

European Central Bank Introductory Statement To The Press Conference, Mario Draghi

Documents

No abstract provided.


What Is The Expanded Asset Purchase Program?, European Central Bank (Ecb) Jan 2015

What Is The Expanded Asset Purchase Program?, European Central Bank (Ecb)

Documents

No abstract provided.


Central Bank Of Argentina Uses Pboc Swap Agreement For External Financing, Maria Espadinha Jan 2015

Central Bank Of Argentina Uses Pboc Swap Agreement For External Financing, Maria Espadinha

Documents

No abstract provided.


The Ecj Suggests Omt Is Compatible With The Treaty, But Not With The Troika, Silvia Merler Jan 2015

The Ecj Suggests Omt Is Compatible With The Treaty, But Not With The Troika, Silvia Merler

Documents

No abstract provided.


Ireland: Lessons From Its Recovery From The Bank-Sovereign Loop, International Monetary Fund (Imf): European Department Jan 2015

Ireland: Lessons From Its Recovery From The Bank-Sovereign Loop, International Monetary Fund (Imf): European Department

Documents

No abstract provided.


Opinion No. 1/2015, Portugal Jan 2015

Opinion No. 1/2015, Portugal

Documents

No abstract provided.


The Advanced Technology Vehicles Manufacturing (Atvm) Loan Program: Status And Issues, Bill Canis, Brent D. Yacobucci Jan 2015

The Advanced Technology Vehicles Manufacturing (Atvm) Loan Program: Status And Issues, Bill Canis, Brent D. Yacobucci

Documents

U.S. Auto Industry Bailout