I study the ex-ante aggregation of preferences of Bayesian agents in a purely subjective framework. Unlike Gilboa et al. (2004), I relax the assumption of Bayesian society while keeping the Pareto condition. Under a simple axiom that relates society’s preference to those of the agents, I...

Trade data are typically reported at the level of regions or countries and are therefore aggregates across space. In this paper, we investigate the sensitivity of standard gravity estimation to spatial aggregation. We build a model in which symmetric micro regions are aggregated into macro...

This paper applies the explicit aggregation (Xpa) algorithm developed by den Haan and Rendahl [2010. Solving the incomplete markets model with aggregate uncertainty using explicit aggregation. Journal of Economic Dynamics and Control, 69–78] to the heterogeneous–firm models of Khan and...

Decisions agents make before and after matching can be strategically linked through the match. We demonstrate this linkage in a game where universities either force students to commit to majors before matriculating or allow students to pick majors during their studies. The interaction between...

Managers in decentralized organizations often face incentives against cooperation. In these situations, accounting information can increase cooperation when it reveals the cooperativeness of other managers' prior actions. The extent to which accounting information reveals other managers' prior...

Following the implementation of Solvency 2 in Europe and other parts of the world, many (re)insurance companies decided to put in place Internal Models. The central part of an internal model is its aggregation tree and the calibration of the aggregation tree has been the subject of many...

This paper questions the conventional wisdom that publication bias must result from the biased preferences of researchers. When readers only compare the number of positive and negative results of papers to make their decisions, even unbiased researchers will omit noisy null results and inflate...

The analysis of loss data is of utmost interest in many branches of the financial and insurance businesses, in structural engineering and in operations research among others. In the financial industry the determination of the distribution of losses is the first step to take in order to compute...

One of the most successful empirical relationships in international trade is the gravity equation, which relates bilateral trade flows between an origin and destination to bilateral trade frictions, origin characteristics, and destination characteristics. A key decision for researchers in...