Designing Call Auction Institutions To Eliminate Price Bubbles: Is English Dutch The Best?,
2019
Chapman University
Designing Call Auction Institutions To Eliminate Price Bubbles: Is English Dutch The Best?, Cary Deck, Maroš Servátka, Steven Tucker
ESI Working Papers
The bubble and burst pattern in asset market experiments is among the most replicable results in experimental economics. Numerous studies have searched for means to reduce this mispricing. Using controlled laboratory experiments, we compare mispricing in standard double auction markets to prices in two clock auctions. The double Dutch auction, shown to be more efficient than the double auction in commodity market experiments, does not eliminate bubbles. However, the English Dutch auction does yield prices reflective of underlying fundamentals and succeeds in taming bubbles even with inexperienced traders in the common declining fundamental value environment.
Methodological Differences Cannot Explain Associations Between Health, Anthropometrics, And Excess Resting Metabolic Rate,
2019
University of California, Santa Barbara
Methodological Differences Cannot Explain Associations Between Health, Anthropometrics, And Excess Resting Metabolic Rate, Michael Gurven, Benjamin Trumble, Jonathan Stieglitz, Dan Cummings, Hillard Kaplan, Aaron D. Blackwell, Gandhi Yetish, Herman Pontzer
ESI Publications
"We appreciate Ocobock's interest in methodological rigor. We largely agree with her commentary, which suggests that departures from standard protocols might have contributed to the high resting metabolic rate (RMR) measured for Tsimane. Indeed, our paper acknowledges many of the key departures from gold-standard indirect calorimetry methods of RMR assessment and attempts to adjust for several of these (Gurven et al., 2016). Bringing standard clinical methods into remote field settings often involves certain compromises, especially in our case, where RMR measurement was just one component of a large-scale health and aging project (Gurven et al., 2017). RMR data collection was …
Salience And Social Choice,
2019
Chapman University
Salience And Social Choice, Mark Schneider, Jonathan W. Leland
ESI Working Papers
The axioms of expected utility and discounted utility theory have been tested extensively. In contrast, the axioms of social welfare functions have only been tested in a few questionnaire studies involving choices between hypothetical income distributions. In this note, we conduct a controlled experiment with 100 subjects in the role of social planners that tests five fundamental properties of social welfare functions to provide a basic test of cardinal social choice theory. We find that four properties of the standard social welfare functions tested are systematically violated, producing an Allais paradox, a common ratio effect, a framing effect, and a …
Producer Services: A Hub For Stem And An Engine For Job Growth,
2019
University of Nebraska-Lincoln
Producer Services: A Hub For Stem And An Engine For Job Growth, Eric Thompson, Uyen Tran
Business in Nebraska
The producer services sector, which includes professional and technical services such as accounting, engineering, computer programming, advertising and consulting, is the fastest growing, high-wage segment of the U.S. economy. Producer services employment grew by 15 percent nationwide from 2008 through 2017 but only by 5 percent in Nebraska. Nebraska growth lagged the nation in part because the state has smaller metropolitan areas. Producer service businesses tend to congregate in larger cities. To grasp more opportunities in this growing, high wage sector, Nebraska needs to train more workers in STEM occupations, encourage the development of small businesses in the sector, and …
Linking Social Protection And Humanitarian Assistance In The Philippines,
2019
Ateneo de Manila University
Linking Social Protection And Humanitarian Assistance In The Philippines, Fernando T. Aldaba
Economics Department Faculty Publications
This study is part of a multi-country collection of cases showing that humanitarian assistance and social protection programmes are not necessarily mutually exclusive. As will be shown in the next section, there is an increasing amount of literature discussing the integration of humanitarian assistance into social protection systems or the linkage of disaster risk responses with specific social safety net programmes. The nexus maybe seen through synergies via common frameworks, platforms and systems utilized in such programmes. The Philippines, a developing economy in Southeast Asia continues to tackle the problems of poverty and vulnerability among its 100 million population. It …
A Time To Print, A Time To Reform,
2019
Martin-Luther University of Halle-Wittenberg
A Time To Print, A Time To Reform, Lars Boerner, Jared Rubin, Battista Severgnini
ESI Working Papers
The public mechanical clock and movable type printing press were arguably the most important and complex technologies of the late medieval period. We posit that towns with clocks became upper-tail human capital hubs--clocks required extensive technical know-how and fine mechanical skill. This meant that clock towns were in position to adopt the printing press soon after its invention in 1450, as presses required a similar set of mechanical and technical skills to operate and repair. A two-stage analysis confirms this conjecture: we find that clock towns were 34-40 percentage points more likely to also have a press by 1500. The …
Counterparty Risk And The Establishment Of The New York Stock Exchange Clearinghouse,
2019
University of Colorado, Boulder
Counterparty Risk And The Establishment Of The New York Stock Exchange Clearinghouse, Asaf Bernstein, Eric Hughson, Marc Weidenmier
Business Faculty Articles and Research
We examine the effect of the establishment of the New York Stock Exchange (NYSE) clearinghouse in 1892 on counterparty risk using a novel historical experiment. During this period, the NYSE stocks were dual-listed on the Consolidated Stock Exchange (CSE), which already had a clearinghouse. Using identical securities on the CSE as a control, we find that the introduction of multilateral net settlement through a clearinghouse substantially reduced volatility of NYSE returns caused by settlement risk and increased asset values. Our results indicate that a clearinghouse can improve market stability and value through a reduction in network contagion and counterparty risk.
Endogenous Market Formation And Monetary Trade: An Experiment,
2019
Chapman University
Endogenous Market Formation And Monetary Trade: An Experiment, Gabriele Camera, Dror Goldberg, Avi Weiss
ESI Working Papers
The theory of money assumes decentralized bilateral exchange and excludes centralized multilateral exchange. However, endogenizing the exchange process is critical for understanding the conditions that support the use of money. We develop a “travelling game” to study the emergence of decentralized and centralized exchange, theoretically and experimentally. Players located on separate islands can either trade locally, or pay a cost to trade elsewhere, so decentralized and centralized markets can both emerge in equilibrium. The former minimize trade costs through monetary exchange; the latter maximizes overall surplus through non-monetary exchange. Monetary trade emerges when coordination is problematic, while centralized trade emerges …
The Attack And Defense Games,
2019
Chapman University
The Attack And Defense Games, Roman Sheremeta
ESI Working Papers
The attack and defense game is a game in which an attacker (a group of attackers) has an incentive to revise the status quo and a defender (a group of defenders) wants to protect it. The asymmetry in objectives creates incompatible interests and results in a mixed-strategy Nash equilibrium. However, this equilibrium could be heavily impacted by behavioral considerations.
On The Merit Of Equal Pay: Performance Manipulation And Incentive Setting,
2019
Chapman University
On The Merit Of Equal Pay: Performance Manipulation And Incentive Setting, Brice Corgnet, Ludivine Martin, Peguy Ndodjang, Angela Sutan
ESI Publications
Work performance is often difficult to assess thus leaving room for manipulation of commonly-used metrics. We created a laboratory workplace in which we can precisely assess both work performance along with manipulation activities. Using two independent experiments we show that, whenever pay for performance is used, manipulation is pervasive leading to both a waste of organizational resources and a weakening of incentives. By contrast, paying organizational members equally effectively deters manipulation attempts leading to higher organizational production.
A Bias Aggregation Theorem,
2019
Chapman University
A Bias Aggregation Theorem, Mark Schneider
ESI Working Papers
In a market where some traders are rational (maximize expected utility) and others are systematically biased (deviate from expected utility due to some bias parameter, q), do equilibrium prices necessarily depend on q? In this note, focusing on the case where there is an aggregate and systematic bias in the population, we show that market prices can still be unbiased. Hence, we establish that systematically biased agents do not necessarily imply biased market prices. We show that the parametric model we use also predicts observed deviations from expected utility in laboratory and market environments.
Cooperation Among Strangers With And Without A Monetary System,
2019
University of Bologna
Cooperation Among Strangers With And Without A Monetary System, Maria Bigoni, Gabriele Camera, Marco Casari
ESI Working Papers
Human societies prosper when their members move beyond local exchange and cooperate with outsiders in the creation of wealth. Collaboration of this type presents formidable challenges because interaction is impersonal, reciprocity is unfeasible and trust cannot be easily established. Here we study this cooperation problem by modeling strategic interaction among strangers through an Intertemporal Exchange Game. The setup can be easily implemented in the laboratory to study a variety of cooperation-enhancing institutions. In particular, we study the role of a fiat monetary system by introducing intrinsically worthless tokens that can be offered in exchange for cooperation. The experiments show that …
Are The Food Insecure More Likely To Be Obese?,
2019
Bryant University
Are The Food Insecure More Likely To Be Obese?, Lisa Russo
Empirical Economic Bulletin, An Undergraduate Journal
This paper investigates the connections between food insecurity and obesity levels throughout the United States over three years (2011-2013). The causes of obesity are often not entirely a result of poor diet and exercise, but of the presence of food deserts in impoverished areas. Changes in income trends in recent years also the poor remain poor rather than experiencing upward mobility. This study builds on previous studies conducted both within the U.S. and internationally that found that food insecurity is a determinant of obesity rates. This study uses poverty as a proxy measurement for food insecurity at the state level, …
The Effect Of Corruption On Foreign Direct Investment In Transition Economies: A Panel Data Study,
2019
Bryant University
The Effect Of Corruption On Foreign Direct Investment In Transition Economies: A Panel Data Study, Michael Chodziutko
Empirical Economic Bulletin, An Undergraduate Journal
This paper investigates the FDI inflows into transition economies of Europe. The study incorporates a time series element to help see how investment has changed over time in this region. Corruption and economic conditions are what will be specifically studied in this model. Market conditions are the final independent variable present in this studied, used to try and understand how the market size can influence inflows. The results show that there is a negative relationship between corruption on FDI flows. It was also found that economic growth and integration into the world economy have a positive relationship in attracting foreign …
The Burden Of Public Debt On The United Kingdom: Analyzed With Var Approach,
2019
Bryant University
The Burden Of Public Debt On The United Kingdom: Analyzed With Var Approach, Yuvraj Duggal
Empirical Economic Bulletin, An Undergraduate Journal
The study aims to find the relationship in between economic growth and public debt in the United Kingdom using a Vectoral Autoregression approach in between 1999 till 2017. The study aims to examine the impact of public debt on interest rates, inflation rates, Real GDP growth rate, and interest debt payments in the UK. The results show a positive and statistically significant impact of public debt on inflation rates and interest rates. It is also found that the variables affect each other as a consequence in the model and therefore public debt also influence the real GDP growth rates and …
Humanomics: Moral Sentiments And The Wealth Of Nations For The Twenty-First Century,
2019
Chapman University
Humanomics: Moral Sentiments And The Wealth Of Nations For The Twenty-First Century, Vernon Smith, Bart J. Wilson
Economics Faculty Books and Book Chapters
Sometime in the last 250 years, economists lost sight of the full range of human feeling, thinking, and knowing in everyday life. Smith and Wilson show how Adam Smith's model of sociality can re-humanize twenty-first century economics by undergirding it with sentiments, fellow feeling, and a sense of propriety - the stuff of which human relationships are built. Integrating insights from The Theory of Moral Sentiments and the Wealth of Nations into contemporary empirical analysis, this book shapes economic betterment as a science of human beings.
Corruption And South American Public Health Governance: A Panel Data Analysis,
2019
Bryant University
Corruption And South American Public Health Governance: A Panel Data Analysis, Richard Mydland
Empirical Economic Bulletin, An Undergraduate Journal
This paper investigates high income South American countries and their Corruption Perception Index ranking compared to their public health economic variables alongside other macroeconomic variables. The study takes into account that each country is different by means of economic nature due to geographic location. Countries with a natural resource curse are different from traditionalist economic countries. The model examines the implications of a corruption ranking along with health and macroeconomic data that is strongly correlated with decreasing or increasing returns to scale.
The Glass-Cliff And Usa Politics: Are Women Set Up For Failure?,
2019
Bryant University
The Glass-Cliff And Usa Politics: Are Women Set Up For Failure?, Amber Marin
Empirical Economic Bulletin, An Undergraduate Journal
This study investigates the hypothesis that the glass cliff exists in Senate races for the United States in 1998, 2004, 2010, and 2016. It compares the effects to anecdotal situations focusing on Brexit. The results of the study find validity in glass cliff hypothesis.
Does Growth Have A Price Tag? Foreign Aid’S Effect On Economic Growth In Africa,
2019
Bryant University
Does Growth Have A Price Tag? Foreign Aid’S Effect On Economic Growth In Africa, Andrew Berghahn
Empirical Economic Bulletin, An Undergraduate Journal
This paper investigates the linkage between Official Development Assistance (ODA) received by African countries and the growth of GDP per capita within those nations. This study uses fixed and random effects to explore to ascertain the effects of increasing the amount of ODA received in relation to the country’s GDP. The results from this analysis show that there is a clear negative impact on country’s GDP per capita as ODA increases in relation to total GDP.
One Step At A Time: Does Gradualism Build Coordination?,
2019
Xiamen University
One Step At A Time: Does Gradualism Build Coordination?, Maoliang Ye, Jie Zheng, Plamen Nikolov, Sam Asher
Economics Faculty Scholarship
This study investigates a potential mechanism to promote coordination. With theoretical guidance using a belief-based learning model, we conduct a multi-period, binary-choice, and weakest-link laboratory coordination experiment to study the effect of gradualism – increasing the required levels (stakes) of contributions slowly over time rather than requiring a high level of contribution immediately – on group coordination performance. We randomly assign subjects to three treatments: starting and continuing at a high stake, starting at a low stake but jumping to a high stake after a few periods, and starting at a low stake while gradually increasing the stakes over time …
