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SelectedWorks

Selected Works

2017

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Articles 1 - 14 of 14

Full-Text Articles in Social and Behavioral Sciences

Why The World Needs A Reserve Asset With A Hard Anchor, Warren Coats, Dongsheng Di, Yuxuan Zhao Dec 2017

Why The World Needs A Reserve Asset With A Hard Anchor, Warren Coats, Dongsheng Di, Yuxuan Zhao

Warren Coats

From the 1970s, the global currency system has two features: the use of one or a few sovereign currencies as the global reserve asset and the floating exchange rate regime between major currencies.This paper points out that the costs of the dollar’s use as an international reserve currency exceed the benefits for both the US and the rest of the world. These costs include the exporting of American manufacturing as a byproduct of its current account deficit needed to supply its currency to the rest of the world. In addition to the detriment to trade from unpredictable exchange rate fluctuations, …

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Ceo Compensation And Risk-Taking At Financial Firms: Evidence From U.S. Federal Loan Assistance, Amar Gande, Swami Kalpathy Dec 2017

Ceo Compensation And Risk-Taking At Financial Firms: Evidence From U.S. Federal Loan Assistance, Amar Gande, Swami Kalpathy

Amar Gande

We examine whether risk-taking among the largest financial firms in the U.S. is related to CEO equity incentives before the 2008 financial crisis. Using data on U.S. Federal Reserve emergency loans provided to these firms, we find that the amount of emergency loans and total days the loans are outstanding are increasing in pre-crisis CEO risk-taking incentives – “vega”. Our results are robust to accounting for endogeneity in CEO equity incentives and selection of financial firms into emergency loan programs. We also rule out the possibility that our results are driven by a bank’s funding base, bank complexity, CEO overconfidence, …

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Partial Disability And Labor Market Adjustment: The Case Of Spain, José Ignacio Silva, Judit Vall Oct 2017

Partial Disability And Labor Market Adjustment: The Case Of Spain, José Ignacio Silva, Judit Vall

José Ignacio Silva


Although partially disabled individuals in Spain are allowed to combine disability benefits with a job, the empirical evidence shows that the employment rate of this group of individuals is very low because they have a much lower job finding and a higher job separation rates than nondisabled workers. Moreover, a decomposition analysis of the equilibrium employment rate shows that the differences in the job finding rates explain 85 percent of the disabled employment gap. To explain these facts, we construct a labor market model with search intensity and matching frictions to identify the incentives and disincentives to work in Spain …

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Trust In Cohesive Communities, Felipe Balmaceda Assoc Prof., Juan Escobar Assistant Professor Jul 2017

Trust In Cohesive Communities, Felipe Balmaceda Assoc Prof., Juan Escobar Assistant Professor

Felipe Balmaceda

This paper studies which social networks maximize trust and welfare when agreements are implicitly enforced. We study a repeated trust game in which trading opportunities arise exogenously and a social network determines the information each player has. We show that cohesive communities, modeled as social networks of complete components, emerge as the optimal community design. Cohesive communities generate some degree of common knowledge of transpired play that allows players to coordinate their punishments and, as a result, yield relatively high equilibrium payoffs. We also show that when news swiftly travel through the network, Pareto efficient networks are minimally connected: the …

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Competitive Intensity And Its Two-Sided Effect On The Boundaries Of Firm Performance, Joao Montez, Francisco Ruiz-Aliseda, Michael D. Ryall May 2017

Competitive Intensity And Its Two-Sided Effect On The Boundaries Of Firm Performance, Joao Montez, Francisco Ruiz-Aliseda, Michael D. Ryall

Michael D Ryall

The new perspective emerging from strategy's value-capture stream is that the effects of competition are two-fold: competition for an agent bounds its performance from below, while that for its transaction partners bounds from above. Thus, assessing the intensity of competition on either side is essential to understanding firm performance. Yet, the literature provides no formal notion of "competitive intensity" with which to make such assessments. Rather, some authors use added value as their central analytic concept, others the core. Added value is simple, but misses the crucial, for-an-agent side of competition. The core is theoretically complete, but difficult to interpret …

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Suppliers, Investors, And Equity Market Liberalizations, Martin Strieborny Mar 2017

Suppliers, Investors, And Equity Market Liberalizations, Martin Strieborny

Martin Strieborny

Allowing foreign investors to acquire equity stakes in domestic firms stimulates the real economy by promoting frictionless relationships between buyers and suppliers of intermediate goods. I combine insights from research on financial liberalization and relationship-specific investment to derive this hypothesis and then use a difference-in-difference empirical framework to test it. Results from panel-data and event-study estimations confirm that equity market liberalizations boost output growth particularly in suppliers-dependent industries that require a high share of specialized inputs in their production process. Financial openness can thus facilitate smooth interactions between firms and an important corporate stakeholder - suppliers of crucial production inputs.

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Costly Location In Hotelling Duopoly, Jeroen Hinloopen, Stephen Martin Mar 2017

Costly Location In Hotelling Duopoly, Jeroen Hinloopen, Stephen Martin

Jeroen Hinloopen

We introduce a cost of location into Hotelling’s (1929) spatial duopoly. We derive the general conditions on the cost-of-location function under which a pure strategy price-location Nash equilibrium exists. With linear transportation cost and a suitably specified cost of location that rises toward the center of the Hotelling line, symmetric equilibrium locations are in the outer quartiles of the line, ensuring the existence of pure strategy equilibrium prices. With quadratic transportation cost and a suitably specified cost of location that falls toward the center of the line, symmetric equilibrium locations range from the center to the end of the line.

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Research And Development Cooperatives And Market Collusion: A Global Dynamic Approach, Jeroen Hinloopen, Grega Smrkolj, Florian Wagener Mar 2017

Research And Development Cooperatives And Market Collusion: A Global Dynamic Approach, Jeroen Hinloopen, Grega Smrkolj, Florian Wagener

Jeroen Hinloopen

We present a continuous-time generalization of the seminal research and development model of d’Aspremont and Jacquemin (Am Econ Rev 78(5):1133–1137, 1988) to examine the trade-off between the benefits of allowing firms to cooperate in research and the corresponding increased potential for product market collusion. Weshow the existence of a solution to the optimal investment problem using a combination of results from viscosity theory and the theory of planar dynamical systems. In particular, we show that there is a critical level of marginal cost at which firms are indifferent between doing nothing and starting to develop the technology.We findthat colluding firms …

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Non-Defaultable Debt And Sovereign Risk, Juan Carlos Hatchondo, Leonardo Martinez, Yasin Kursat Onder Jan 2017

Non-Defaultable Debt And Sovereign Risk, Juan Carlos Hatchondo, Leonardo Martinez, Yasin Kursat Onder

Leonardo Martinez

No abstract provided.

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Serious Gamification: On The Redesign Of A Popular Paradox, Steffen Roth Jan 2017

Serious Gamification: On The Redesign Of A Popular Paradox, Steffen Roth

Dr. Steffen Roth

We challenge the idea of the paradoxical nature of the concept serious games and ask how researchers and designers need to conceive of serious games so that they at all appear paradoxical. To develop and answer this question, we draw on a theory–method that considers all forms of observation as paradoxical. We then use the tetralemma, a structure from traditional Indian logics, to resolve the paradox of serious games into this larger paradox of observation. Consequently, serious games may only be consid- ered a paradox if we presume realities and define games as deviations therefrom. The increasing gamification of society, …

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C.V. - Wojciech Budzianowski, Wojciech M. Budzianowski Jan 2017

C.V. - Wojciech Budzianowski, Wojciech M. Budzianowski

Wojciech Budzianowski

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Renewable Energy And Sustainable Development (Resd) Group, Wojciech M. Budzianowski Jan 2017

Renewable Energy And Sustainable Development (Resd) Group, Wojciech M. Budzianowski

Wojciech Budzianowski

No abstract provided.

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Call For Abstracts - Resrb 2017, June 19-21, 2017, Wrocław, Poland, Wojciech M. Budzianowski Jan 2017

Call For Abstracts - Resrb 2017, June 19-21, 2017, Wrocław, Poland, Wojciech M. Budzianowski

Wojciech Budzianowski

No abstract provided.

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Religion, Administration & Public Goods: Experimental Evidence From Russia, Theocharis N. Grigoriadis Jan 2017

Religion, Administration & Public Goods: Experimental Evidence From Russia, Theocharis N. Grigoriadis

Theocharis Grigoriadis

In this paper, I argue that religion matters for the provision of public goods. I identify three normative foundations of Eastern Orthodox monasticism with strong economic implications: 1. solidarity, 2. obedience, and 3. universal discipline. I propose and solve a public goods game with a three-tier hierarchy, where these norms are modeled as treatments. Obedience and universal discipline facilitate the provision of threshold public goods in equilibrium, whereas solidarity does not. Empirical evidence is drawn from public goods experiments run with regional bureaucrats in Tomsk and Novosibirsk, Russia. The introduction of the same three norms as experimental treatments produces different …

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