Economics Commons^™

Limit Orders And The Intraday Behavior Of Market Liquidity: Evidence From The Toronto Stock Exchange, Minh Vo

Faculty Working Papers

This paper examines the intraday behavior of market liquidity in an order-driven market. Along with previous studies, we show that the U-shaped intraday pattern of spread does not depend on the market architecture. We also find that bid-ask spread and market depth are two dimensions of market liquidity. Market liquidity is inversely related to price volatility. We also investigate the impacts of trading volume on market liquidity. High trading volume implies high liquidity trades and as a result, limit order traders decrease (increase) ask (bid) price and/or increase depth at each quote.

Output Gap Uncertainty And Monetary Policy During The 1970s, David E. Spencer

Faculty Publications

The conduct of monetary policy during the 1970s was greatly complicated by systematic real-time misperceptions of the state of economic activity as measured by the output gap. Employing real-time data and using the Taylor rule as an analytical framework, I explore the implications of utilizing alternative observable proxies for the unobservable output gap. I compare the counterfactual paths for the federal funds rate generated under each proxy with the actual path of the federal funds rate and a benchmark ("ideal") path implied by a full information Taylor rule. Results suggest that these real-time proxies would have resulted in better policy …

Crop Insurance In South Dakota: Sunflowers, Oats, Grain Sorghum, And Millet, Matthew A. Diersen

Economics Commentator (1972- 2016)

No abstract provided.

Comparisons Among Firms: (When) Do They Justify Mandatory Disclosure?, Sharon Hannes

ExpressO

Comparisons among firms play a major role in securities analysis. This essay asks if this fact justifies the mandatory nature of securities regulation. Once a firm approaches the public securities markets, federal securities regulations compel it to disclose financial information to the public. A seminal theory argues that firms would not otherwise commit to maintain optimal disclosure levels, since a disclosing firm bears all disclosure costs but does not gain all disclosure benefits.

This paper examines the robustness of this argument in relation to disclosure benefits which arise from comparisons among firms. Financial data of peer firms allows shareholders to …

The Wto’S Gemeinschaft, Sungjoon Cho

All Faculty Scholarship

This Article focuses on the current development-related problems in the global trading system. A widening income gap and widespread poverty among trading nations denote the WTO’s Gesellschaftian nature—interest and power—resulting in structural distortion and manipulation. This Article maintains that the global trading system can achieve its development agenda and become fair and legitimate only through a critical paradigmatic transformation enabled by the configuration of the “WTO’s Gemeinschaft.” This Article observes that a fundamental legal precept, the “Law of Nations” (jus gentium), plays a critical role in actualizing this communitarian telos. Part II redefines the global trading system through the theoretical …

Rhode Island Current Conditions Index -- February 2004, Leonard Lardaro

The Rhode Island Current Conditions Index

No abstract provided.

Purification In The Infinitely-Repeated Prisoners’ Dilemma, V. Bhaskar, George J. Mailath, Stephen Morris

Cowles Foundation Discussion Papers

This paper investigates the Harsanyi-purifiability of mixed strategies in the repeated prisoners’ dilemma with perfect monitoring. We perturb the game so that in each period, a player receives a private payoff shock which is independently and identically distributed across players and periods. We focus on the purifiability of a class of one-period memory mixed strategy equilibria used by Ely and Välimäki in their study of the repeated prisoners’ dilemma with private monitoring. We find that the strategy profile is purifiable by perturbed-game finite-memory strategies if and only if it is strongly symmetric, in the sense that after every history, both …

Using Subspace Methods For Estimating Arma Models For Multivariate Time Series With Conditionally Heteroskedastic Innovations, Dietmar Bauer

Cowles Foundation Discussion Papers

This paper deals with the estimation of linear dynamic models of the ARMA type for the conditional mean for time series with conditionally heteroskedastic innovation process widely used in modelling financial time series. Estimation is performed using subspace methods which are known to have computational advantages as compared to prediction error methods based on criterion minimization. These advantages are especially strong for high dimensional time series. The subspace methods are shown to provide consistent estimators. Moreover asymptotic equivalence to prediction error estimators in terms of the asymptotic variance is proved. Also order estimation techniques are proposed and analyzed. The estimators …

Eerc Economic Impact, University Of North Dakota. Energy And Environmental Research Center

EERC Brochures and Fact Sheets

Brochure about the economic impact of the Energy & Environmental Research Center (EERC). [This item is an outdated or superseded version and retained for historical purposes only. It may no longer reflect current information, policies, or practices.]

Life-Cycle Consumption And The Age-Adjusted Value Of Life, Thomas J. Kniesner, W. Kip Viscusi, James P. Ziliak

Economics - All Scholarship

Our research examines empirically the age pattern of the implicit value of life revealed from workers' differential wages and job safety pairings. Although aging reduces the number of years of life expectancy, aging can affect the value of life through an effect on planned life-cycle consumption. The elderly could, a priori, have the highest implicit value of life if there is a life-cycle plan to defer consumption until old age. We find that largely due to the age pattern of consumption, which is non-constant, the implicit value of life rises and falls over the lifetime in a way that the …

Economic Sanctions As A Tool Of Coercive Diplomacy, Heba Mostafa Rizk

Archived Theses and Dissertations

No abstract provided.

Montana Travel Research: 2004, Norma P. Nickerson, James Wilton

Institute for Tourism and Recreation Research Publications

Outlook for 2004 and Review of 2003.

Incentive Solutions, Timothy J. Bartik

Upjohn Institute Working Papers

This paper reviews the research literature relevant to economic development incentives provided by state and local governments, and recommends reforms in these incentives. I argue that the main problem with current incentive policies is that state and local governments often provide incentives that are not in the best interest of that state or local area, for example that are excessively costly per job created, or that provide jobs that do not improve the job opportunities of local residents. I suggest that reforms should be "bottom-up" rather than "top-down." Regulation of incentives by the federal government, or by international trade treaties, …

From Efficiency-Driven To Innovation-Driven Growth: Perspectives From Singapore, Kim Song Tan

Research Collection School Of Economics

No abstract provided.

Fiscal Decentralization In The Czech And Slovak Republics: A Comparative Study Of Moral Hazard, Phillip J. Bryson, Gary C. Cornia, Gloria E. Wheeler

Faculty Publications

Fiscal decentralization has provided neither the benefits of decentralization nor an independent revenue source for subnational governments in the Czech and Slovak Republics. In Slovakia, political conditions early in the transition led to the relative neglect of revenue transfers from the center. This produced financial stress but also encouraged greater fiscal independence for local governments. It also forced them to seek maximal property tax revenues. The Czech Republic made more substantial transfers to local governments, but the development of fiscal autonomy was stifled as transfers reduced the need for own-source local revenues. The Czech real estate tax has remained nominal …

Local Coordination And Market Equilibria, Shurojit Chatterji, Sayantan Ghosal

Research Collection School Of Economics

We reformulate the local stability analysis of market equilibria in a competitive market as a local coordination problem in a market game, where the map associating market prices to best-responses of all traders is common knowledge and well-defined both in and out of equilibrium. Initial expectations over market variables differ from their equilibrium values and are not common knowledge. This results in a coordination problem as traders use the structure of the market game to converge back to equilibrium. We analyse a simultaneous move and a sequential move version of the market game and explore the link with local rationalizability.

Ui Work Search Rules And Their Effects On Employment, Christopher J. O'Leary

Reports

This paper summarizes state unemployment insurance (UI) job search policies based on a survey of state rules conducted in 2003 by the National Association of State Workforce Agencies (NASWA). Commonalities in policies are identified and a summary of research evidence on the effects of job search assistance (JSA) is then presented. The conclusion considers promising directions for future research and policy.

New Mexico Labor Market Review 01-31-2004, New Mexico Department Of Labor

Historic Publications

The New Mexico Labor Market Review is a monthly publication presenting statistical data and analysis on labor market conditions throughout New Mexico. Issues examine statewide and regional trends in employment, unemployment, labor force estimates, industry activity, wages, occupational demand, and related economic conditions, often accompanied by feature articles on topics affecting the state’s economy. This issue covers December 2003.

"Agreeing To Disagree": Filling Gaps In Deliberately Incomplete Contracts, Omri Ben-Shahar

Law & Economics Working Papers Archive: 2003-2009

This Article develops a new standard for gap filling in incomplete contracts. It focuses on an important class of situations in which parties leave their agreement deliberately incomplete, with the intent to further negotiate and resolve the remaining issues. In these situations, neither the traditional no-enforcement result nor the usual gap filling approaches accord with the parties’ partial consent. Instead, the Article develops the concept of pro-defendant gap-fillers, under which each party is granted an option to enforce the transaction supplemented with terms most favorable (within reason) to the other party. A deliberately incomplete contract with pro-defendant gap fillers transforms …

Why We Need The Independent Sector: The Behavior, Law, & Ethics Of Not-For-Profit Hospitals, Jill R. Horwitz

Law & Economics Working Papers Archive: 2003-2009

Among the major forms of corporate ownership, the not-for-profit ownership form is distinct in its behavior, legal constraints, and moral obligations. A new empirical analysis of the American hospital industry, using eleven years of data for all urban general hospitals in the country, shows that corporate form accounts for large differences in the provision of specific medical services. Not-for-profit hospitals systematically provide both private and public goods that are in the public interest, and that other forms fail to provide. Two hypotheses are proposed to account for the findings, one legal and one moral. While no causal claims are made, …

Producer Perceptions Of Research Needs And Transgenic Crop Adoption In South Dakota, Evert Van Der Sluis, Angella Van Scharrel

Economics Commentator (1972- 2016)

No abstract provided.

Farm Level Transgenic Crop Adoption Rates In South Dakota, Angella Van Scharrel, Evert Van Der Sluis

Economics Commentator (1972- 2016)

No abstract provided.

Cuba's Energy Challenge: Fueling The Engine Of Future Economic Growth, Jorge R. Piñón

Institute for Cuban & Cuban-American Studies Occasional Papers

No abstract provided.

Prescriptive Authority: Global Markets As A Challenge To National Regulatory System, David J. Gerber

All Faculty Scholarship

No abstract provided.

Resolving Sovereign Debt: Collective Action Clauses Or The Sovereign Debt Restructuring Mechanism, Shalendra Sharma

Politics

When sovereign debt restructuring or debt reduction becomes unavoidable, what is the appropriate regime that can provide for an orderly restructuring, while at the same time protecting the rights of both creditors and the debtor? The recent wave of sovereign default has underscored the limits of the current market-based regime. Recently two alternative approaches propose a "contractual approach" by way of the introduction of collective action clauses (CAC) in bond contracts, and a "statutory approach" put forward by the International Monetary Fund (IMF), which calls for the establishment of an international debt restructuring mechanism (called the sovereign debt restructuring mechanism …

The Cost Of Conscience: Quantifying Our Charitable Burden In An Era Of Globalization, Frank A. Pasquale

Faculty Scholarship

Development economists have long debated the proper targets for foreign aid contributions from wealthy countries. Philosophers like Peter Singer and Peter Unger now suggest that these countries' citizens have a parallel moral responsibility to tithe a portion of their income directly for the relief of the suffering of the poorest. These thinkers would prefer a systematic global redistribution of income - some public mechanism for accomplishing worldwide what the tax systems of egalitarian social democratic states accomplish. But they all realize that such global governance is unlikely to come about in any of our lifetimes. So they turn their attention …

Research In Review: Regional Economic Impacts Of Military Installations In The Paso Del Norte Region, Dennis L. Soden, David A. Schauer, Brent Mccune, David Coronado, Janet S. Conary

IPED Technical Reports

No abstract provided.

Does Fund Size Erode Mutual Fund Performance? The Role Of Liquidity And Organization, Joseph Chen, Harrison G. Hong, Ming Huang, Jeffrey D. Kubik

Economics - All Scholarship

We investigate the effect of scale on performance in the active money management industry. We first document that fund returns, both before and after fees and expenses, decline with lagged fund size, even after adjusting these returns by various performance benchmarks. We then explore a number of potential explanations for this relationship. We find that this relationship is most pronounced among funds that have to invest in small and illiquid stocks, which suggests that the adverse effects of scale are related to liquidity. Controlling for its size, a fund's performance actually increases with the asset base of the other funds …

Trade Mechanism Selection In Markets With Frictions, Gabriele Camera, Alain Delacroix

Economics Faculty Articles and Research

We endogenize the trade mechanism in a search economy with many homogeneous sellers and many heterogeneous buyers of unobservable type. We study how heterogeneity and the traders' continuation values—which are endogenous—influence the sellers' choice of trade mechanism. Sellers trade off the probability of an immediate sale against the surplus expected from it, choosing whether to trade with everyone and how quickly. In equilibrium sellers may simply target one buyer type via non-negotiable offers (price posting), or may price discriminate (haggling). We also study when haggling generates trading delays. A price setting externality arises because of a strategic complementarity in the …

Rhode Island Current Conditions Index -- January 2004, Leonard Lardaro

The Rhode Island Current Conditions Index

No abstract provided.