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Social and Behavioral Sciences Commons™
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Articles 1 - 10 of 10
Full-Text Articles in Social and Behavioral Sciences
Experimental Foreign Exchange Markets, Eric O'N. Fisher, Frank S. Kelly
Experimental Foreign Exchange Markets, Eric O'N. Fisher, Frank S. Kelly
Economics
The paper analyzes experimental markets where subjects buy and sell two different assets. The assets' properties vary across treatments, and their relative price is the exchange rate. Although both assets uniformly exhibit bubbles, the exchange rate satisfies cross‐currency arbitrage. There is no evidence of a positive risk premium in these markets, and almost all subjects' forecasts of the exchange rate are rational.
A Simple Test Of The Law Of Demand For The United States, Eduardo Zambrano, Timothy J. Vogelsang
A Simple Test Of The Law Of Demand For The United States, Eduardo Zambrano, Timothy J. Vogelsang
Economics
No abstract provided.
Smoking Laws And Their Differential Effects On Restaurants, Bars, And Taverns, John Dunham, Michael L. Marlow
Smoking Laws And Their Differential Effects On Restaurants, Bars, And Taverns, John Dunham, Michael L. Marlow
Economics
This article examines the effect of restrictive smoking laws on restaurants, bars, and taverns. Supporters of these laws often argue that they do not harm firms and may even raise profits. Opponents argue that owners cater to customer smoking preferences, and laws mandating specific policies will negatively impact profits. This article provides a framework for examining the distribution of effects that smoking laws exert on businesses, and demonstrates that changes in total sales or tax revenues do not provide a meaningful understanding of the economic implications because smoking laws exert different effects on different firms. The distribution of these effects …
Product Liability, Entry Incentives And Market Structure, Stephen F. Hamilton, David L. Sunding
Product Liability, Entry Incentives And Market Structure, Stephen F. Hamilton, David L. Sunding
Economics
The article characterizes the entry incentives provided by increases in product liability under various forms of competition. It is demonstrated that the entry of small, high-cost firms is likely to occur in imperfectly competitive markets when the average damage increases with industry output. Special cases are considered, including Cournot–Nash oligopoly and dominant firm-competitive fringe.
Vertical Coordination, Antitrust Law, And International Trade, Stephen F. Hamilton, Kyle Stiegert
Vertical Coordination, Antitrust Law, And International Trade, Stephen F. Hamilton, Kyle Stiegert
Economics
This paper demonstrates that vertically aligned private or public organizations are capable of generating strategic trade advantage similar to that acquired through direct government export subsidization. The model considers two forms of vertical coordination that lead to advantageous trade positions in international markets: upstream vertical restraint and downstream equity sharing. Such practices are commonly employed both by state trading agencies and by private firms in nations with lenient antitrust laws. The finding has important implications under new World Trade Organization (WTO) rules intended to reduce government intervention in international transactions. Recent reforms in the WTO favor nations that sanction highly …
Does Market Timing Contribute To The Cattle Cycle?, Stephen F. Hamilton, Terry L. Kastens
Does Market Timing Contribute To The Cattle Cycle?, Stephen F. Hamilton, Terry L. Kastens
Economics
Recent evidence suggests that cyclical cattle inventories are driven by exogenous shocks. This article examines a second possible contributing factor to the cattle cycle: a market timing effect that arises from individual attempts to maintain countercyclical inventories. The model uncovers an important conceptual point: to the extent that cycles are driven by exogenous shocks, a representative producer should outperform one who maintains a constant inventory; whereas, for cycles induced by market timing, a representative producer should underperform one with a constant inventory. Simulated net returns over 1974–98 reveal that a constant-inventory manager significantly outperformed the representative U.S. producer, which indicates …
Review Of The Handbook Of International Economics: Volume 3, Eric O'N. Fisher
Review Of The Handbook Of International Economics: Volume 3, Eric O'N. Fisher
Economics
No abstract provided.
Spending, School Structure, And Public Education Quality. Evidence From California, Michael L. Marlow
Spending, School Structure, And Public Education Quality. Evidence From California, Michael L. Marlow
Economics
This paper examines school structure, spending, and performance relationships in California and finds considerable support for the public exchange model that predicts that greater competition improves student performance. The evidence indicates that, despite claims to the contrary by many advocates of public education, higher education spending does not raise student achievement. Education spending is also shown to be highest in those counties exhibiting highest monopoly power as measured by the Herfindahl index. Strong support is also shown for the public exchange view that higher market power leads to lower student achievement in the fourth and eighth grades, but little support …
The Effects Of Smoking Laws On Seating Allocations Of Restaurants, Bars, And Taverns, John Dunham, Michael L. Marlow
The Effects Of Smoking Laws On Seating Allocations Of Restaurants, Bars, And Taverns, John Dunham, Michael L. Marlow
Economics
Supporters of smoking laws often argue that they do not harm restaurants, bars, and taverns and may even raise their profits. Opponents argue that owners cater to customer preferences regarding smoking and that laws mandating specific smoking policies will therefore negatively impact profits of some firms. This article tests hypotheses regarding how smoking laws affect seating allocations, using data from a nationwide survey of restaurant and bar owners. The empirical evidence indicates that smoking laws exert no significant effect on seating allocations. Firms are shown to allocate greater shares of seating to nonsmoking use when customers exhibit stronger preferences for …
Risk Aversion And The Investment Horizon: A New Perspective On The Time Diversification Debate, Sanjiv Jaggia, Satish Thosar
Risk Aversion And The Investment Horizon: A New Perspective On The Time Diversification Debate, Sanjiv Jaggia, Satish Thosar
Economics
Investment managers generally subscribe to the principle of time diversification. This implies that a larger portion of the portfolio should be devoted to risky assets as the investment horizon increases. In contrast, academics have shown that for investors with utility functions characterized by constant relative risk aversion, the optimal asset-allocation strategy is independent of the investment horizon. The relative risk avers ion in these studies is assumed to be constant both with respect to wealth as well as investment horizon. We suggest a utility function that explicitly captures the notion that individuals are more risk tolerant when the investment horizon …