Identifying Irrationality And Fear-Driven Reactions To Financial Market Shocks & Terrorism,
2016
University of Connecticut
Identifying Irrationality And Fear-Driven Reactions To Financial Market Shocks & Terrorism, Kimberly M. Roland
Honors Scholar Theses
Economic research on post 9-11 terrorism lacks a distinction between fear-based reactions and rational financial market behavior in its analysis surrounding terror strikes. The purpose of this paper is to expose and interpret the fear triggered by terrorism in financial markets, and to separate rational market responses from irrational, fear-driven investor reactions. A rational market response follows the efficient market theory (Wang 1993) in which investors alter their behavior based on changes in fundamental values. Becker and Rubinstein (2011) define terror-triggered fear as the magnitude with which subjective beliefs about danger hinder objective risk assessment. I apply this definition to …
From The Classical School To Today: The Evolution Of Stagnation Theories,
2016
State University of New York College at Buffalo - Buffalo State College
From The Classical School To Today: The Evolution Of Stagnation Theories, Francis J. Lukacovic Ii
Applied Economics Theses
The purpose of this thesis is to study the theory of secular stagnation, which was made famous by the American Keynesian economist Alvin Hansen in his book Full Recovery or Stagnation. The theory of secular stagnation has reappeared in economic circles today due to recent economic conditions since the financial crisis of 2007-2008. The thesis will analyze the history of the stagnation theory dating back to Classical economists in the 19th century. The concept of a stagnating economy has been talked about for centuries with many economists adding important thoughts. Furthermore, the thesis will address the current questions and …
East Asian Economies And Financial Globalization In The Post-Crisis World,
2016
University of Southern California
East Asian Economies And Financial Globalization In The Post-Crisis World, Joshua Aizenman, Hiro Ito
Economics Faculty Publications and Presentations
This paper assesses the East Asian Economies’ openness to cross-border capital flows and exchange rate arrangements in the past decades, with the main focus on emerging market economies. Using Mundell’s trilemma indexes, we note that the convergence of the three policy goals in East Asia toward a “middle ground” pre-dates the convergence of these indices in other regions. Another more recent development involves the high level of international reserve (IR) holdings–a feature that is known as the most distinct characteristic of Asian EMEs. Financial globalization seems to have made asset prices and interest rates in Asian EMEs more vulnerable to …
An Experimental Investigation Of Procurement Auctions With Asymmetric Sellers,
2016
University of Arkansas
An Experimental Investigation Of Procurement Auctions With Asymmetric Sellers, John Aloysius, Cary A. Deck, Li Hao, Ryan French
ESI Publications
Electronic reverse auctions are a commonly used procurement mechanism. Research to date has focused on suppliers who are ex ante symmetric in that their costs are drawn from a common distribution. However, in many cases a seller's range of potential costs depends on their own operations, location, or economies of scale and scope. Thus, understanding how different bidder types impact auction outcomes is key when designing an auction. This paper reports the results of the first controlled laboratory experiment designed to compare prices between first-price and second-price procurement auctions for homogeneous goods when seller cost types are asymmetric and the …
Three Essays On Random Mechanism Design,
2016
Singapore Management University
Three Essays On Random Mechanism Design, Huaxia Zeng
Dissertations and Theses Collection (Open Access)
This dissertation studies a standard voting formulation with randomization. Formally, there is a finite set of voters, a finite set of alternatives and a lottery space over the alternative set. Each voter has a strict preference over alternatives. The domain of preferences contains all admissible preferences. Every voter reports a preference in the domain; a preference profile is generated; and the social lottery then is determined by a Random Social Choice Function (or RSCF). This dissertation focuses on RSCFs which provide every voter incentives to truthfully reveal her preference, and hence follows the formulation of strategyproofness in [26] which requires …
A Characterization Of Single‐Peaked Preferences Via Random Social Choice Functions,
2016
Singapore Management University
A Characterization Of Single‐Peaked Preferences Via Random Social Choice Functions, Shurojit Chatterji, Arunava Sen, Huaxia Zeng
Research Collection School Of Economics
This paper proves the following result: every path-connected domain of preferences that admits a strategy-proof, unanimous, tops-only random social choice function satisfying a compromise property is single-peaked. Conversely, every single-peaked domain admits a random social choice function satisfying these properties. Single-peakedness is defined with respect to arbitrary trees. The paper provides a justification of the salience of single-peaked preferences and evidence in favor of the Gul conjecture (Barber\303\240 2010).
Efficient Dynamic Mechanisms With Interdependent Valuations,
2016
Chinese University of Hong Kong
Efficient Dynamic Mechanisms With Interdependent Valuations, Wei He, Jiangtao Li
Research Collection School Of Economics
This paper considers a dynamic environment with interdependent valuations and evolving private information. Under the assumption of “independent types”, we construct an efficient, incentive-compatible mechanism that is also budget-balanced in every period of the game. Our mechanism works in environments where in each period, each agent observes her own realized outcome-decision payoff from the previous period. This extends the insight of Mezzetti (2004) to the dynamic setting.
The Fair And Impartial Spectator,
2016
Chapman University
The Fair And Impartial Spectator, Vernon L. Smith
Economics Faculty Articles and Research
Adam Smith’s metaphor of the impartial spectator is an essential element in understanding his model of the maturation process whereby people learn to follow general rules that honor the human sentiments of gratitude and resentment in others. Through the impartial spectator human action, subject to error, is governed by self-command. Smith’s model is presented in the form of a series of propositions.
Can Nba Teams Benefit From Losing?,
2016
University of Connecticut - Storrs
Can Nba Teams Benefit From Losing?, Ryan P. Hallisey
Honors Scholar Theses
It has been speculated that franchises in the NBA (national basketball association) lose on purpose because of the benefits that coincide with a team having a poor overall record. Teams that perform the worst are given the highest draft selections in the following season's rookie player draft, thus theoretically improving their chances of becoming a more winning team. Previous economists have used various methodology to prove that NBA teams do in fact lose on purpose; or tank. This paper builds upon this previous methodology to examine the direct impact, negative or positive, that losing on purpose has had on various …
Salience, Framing, And Decisions Under Risk, Uncertainty, And Time,
2016
National Science Foundation
Salience, Framing, And Decisions Under Risk, Uncertainty, And Time, Jonathan W. Leland, Mark Schneider
ESI Working Papers
We propose a comparative model of decision making under risk, uncertainty, and time, in which large differences in payoffs and probabilities or dates of receipt are perceived as salient and overweighted in the evaluation process. The predictions of the model depend on what differences are compared across alternatives which, in turn, depends on how the choice is framed. We formalize a class of matrix-based frames which applies to decisions under risk, uncertainty, and time, and we specify two important types of frames within this class: minimal frames which provide the simplest representation of choice alternatives, and transparent frames which make …
State Dependent Price Setting Rules Under Implicit Thresholds: An Experiment,
2016
University of Arkansas
State Dependent Price Setting Rules Under Implicit Thresholds: An Experiment, Justin Deloy Leblanc, Andrea Civelli, Cary A. Deck, Klajdi Bregu
ESI Publications
How firms make their pricing decisions is a fundamental question of macroeconomics. We use a laboratory experiment to examine individual choices in a price updating task that provide insight into how well state dependent models reflect behavior. We find that in general subjects behave as if they recognize the importance of a state dependent pricing strategy, but they are unable to ascertain this threshold with precision and they also exhibit a substantial degree of time dependence. As a result, they update prices too frequently, and perform statistically significantly fewer real effort profit-generating tasks than theoretically optimal under full state dependence, …
The Golden Straightjacket Is Out Of Style,
2016
Wright State University
The Golden Straightjacket Is Out Of Style, Lacey Germana
Best Integrated Writing
Germana’s review of Thomas Friedman’s The Lexus and the Olive Tree provides careful summary and critique of Friedman’s argument and passionately calls for a balance between increased standards of living and careful stewardship of the earth.
The Distribution Of Globalized Power,
2016
Wright State University
The Distribution Of Globalized Power, Rachel Canter
Best Integrated Writing
Canter reviews Thomas Friedman’s The Lexus and the Olive Tree and observes the dissonance between our notions of globalization and global society; she offers an alternate worldview that pays respect to regional cultures and values.
Does Governance Matter To Economic Growth? Evidence From Mena Countries,
2016
Eastern Illinois University
Does Governance Matter To Economic Growth? Evidence From Mena Countries, Hamid Lahouij
2016 Awards for Excellence in Student Research and Creative Activity - Documents
This research paper uses panel data for the time period 2002-2013 to investigate the impacts of governance and other economic growth determinants on economic growth of some selected oil-importing MENA countries. This paper contributes to the literature on governance, economic development indicators, and economic development in novel ways. The research finds that governance is strongly associated with the economic development. However, the results of this research might conflict with others’ results if their research combines oil-exporting and oilimporting countries in their sample or use different methodologies. Therefore, the policy recommendations should be used cautiously.
Entrepreneurship, Education And Credit: The Golden Triangle,
2016
George Washington University
Entrepreneurship, Education And Credit: The Golden Triangle, Roberto M. Samaniego, Juliana Yu Sun
Research Collection School Of Economics
We develop a model to evaluate the impact of college education finance on welfare, inequality and aggregate outcomes. Our model captures the stylized fact that entrepreneurs with college are more common and more profitable. Our calibration to US data suggests this is mainly because higher labor earnings allow college educated agents to ameliorate credit constraints when they become entrepreneurs. The welfare benefits of subsidizing education are greater than those of eliminating financing constraints on education because subsidies ameliorate the impact of financing constraints on would-be entrepreneurs.
Economic Freedom And Quality Of Life Impacts: A Comparison,
2016
Liberty University
Economic Freedom And Quality Of Life Impacts: A Comparison, Rachel S. Bauer
Senior Honors Theses
The “invisible hand” is a concept foundational to the argument for free market economics, and so is hotly debated. One measure of whether or not the free market is a successful economic model is the quality of life of a country’s residents. Quality of life can be assessed through the areas of housing, labor, health, and education. Economic indicators and quality of life statistics for Hong Kong, the United States, China, and Venezuela appear to prove that there is a correlation between quality of life and economic freedom, as defined by the Heritage Foundation’s Index of Economic Freedom. Even …
Collapsing Illusions: Standards For Setting Efficient Contract And Other Defaults,
2016
University of Iowa
Collapsing Illusions: Standards For Setting Efficient Contract And Other Defaults, Steven J. Burton
Indiana Law Journal
In this Essay, Professor Burton analyzes and evaluates four commonly used standards for setting efficient default rules and standards. Based on two theoretical insights, he shows that three of them collapse upon analysis into the fourth, a Coasian standard that turns out to be a dead end. The theoretical upshot is that the Coase Theorem often is a good reason to use defaults rather than mandatory rules or standards. But neither the theorem nor reference to a transaction-costless world sustains particular defaults. To set an efficient default, the law should guide courts toward supplying terms that parties should have adopted …
Entrepreneurship, College And Credit: The Golden Triangle,
2016
Singapore Management University
Entrepreneurship, College And Credit: The Golden Triangle, Roberto M Samaniego, Juliana Yu Sun
Research Collection School Of Economics
We develop a model to evaluate the impact of college education finance on welfare, inequality and aggregate outcomes. Our model captures the stylized fact that entrepreneurs with college are more common and more profitable. Our calibration to US data suggests this is mainly because higher labor earnings allow college educated agents to ameliorate credit constraints when they become entrepreneurs. The welfare benefits of subsidizing education are greater than those of eliminating financing constraints on education because subsidies ameliorate the impact of financing constraints on would-be entrepreneurs.
Holly Martins And The Impartial Spectator: The Economics Of The Third Man,
2016
James Madison University
Holly Martins And The Impartial Spectator: The Economics Of The Third Man, Alexander W. Pickens
MAD-RUSH Undergraduate Research Conference
The film The Third Man is often critiqued for its portrayal of post-war Vienna and the abusive nature of totalitarian regimes in a nearly-anarchic state. However, this film does something that few other films do: it tackles the primary dilemmas facing economists using a visual medium and featuring some of the debates that have been plaguing economic thinkers for years (what is a just allocation of resources, competition in free markets, what happens when corrupt governments control resource allocation). Ultimately, the film is a unique analysis tension between the costs and benefits of the philosophies of Keynes and F. A. …
Working Paper No. 35, The Machine Process In Industry And Society: A Veblenian Approach,
2016
Portland State University
Working Paper No. 35, The Machine Process In Industry And Society: A Veblenian Approach, Emily Pitkin
Working Papers in Economics
This inquiry considers Thorstein Veblen’s understanding of the machine process and some of its influences. In particular, this paper explores relationships between the machine process and industry, noting the powerful influences of standardization of outputs as well as inputs. In addition, this paper considers some of the implications of the machine process on workers, considering particularly the tendency of the machine process to enforce routines and some of the related effects on “habitual thinking.” Finally, the machine process and its relation to society will be discussed with a focus on its effects on value systems, examining also the ways in …
