Similar Search Results

An Economic Analysis of Exclusion Restrictions for Instrumental Variable Estimation

den Berg, Gerard J van - C.E.P.R. Discussion Papers - 2007

information on the value of the IV. This leads to violation of the exclusion restriction. We analyze this in a dynamic economic …

Persistent link: https://www.econbiz.de/10005792073

Background Uncertainty and the Demand for Insurance Against Insurable Risks

Guiso, Luigi; Jappelli, Tullio - C.E.P.R. Discussion Papers - 1996

Theory suggests that people facing higher uninsurable background risk buy more insurance against other risks that are … casualty insurance increases with earnings uncertainty. This finding is consistent with consumer preferences being …

Persistent link: https://www.econbiz.de/10005123926

Market and Technical Risk in R&D

Gerlach, Heiko A.; Rønde, Thomas; Stahl, Konrad - C.E.P.R. Discussion Papers - 2002

We endogenize the market risk (at given technical risk) in firms’ R&D decisions by introducing stochastic R&D in the Hotelling model. It is shown that if the technical risk is sufficiently high, the market risk remains low even if firms pursue similar projects. This leads firms to focus on the...

Persistent link: https://www.econbiz.de/10005504272

Biases of Professional Exchange Rate Forecasts: Psychological Explanations and an Experimentally-Based Comparison to Novices

Bofinger, Peter; Leitner, Johannes; Schmidt, Robert - C.E.P.R. Discussion Papers - 2004

The empirical performance of macroeconomic exchange rate models is more than disappointing. This dismal result is also reflected in the forecasting capabilities of professional analysts: all in all, analysts are not in a position to beat naïve random walk forecasts. The root for this deficient...

Persistent link: https://www.econbiz.de/10005504428

Model Misspecification and Under-Diversification

Uppal, Raman; Wang, Tan - C.E.P.R. Discussion Papers - 2002

In this Paper we develop a model of intertemporal portfolio choice where an investor accounts explicitly for the possibility of model misspecification. This work is motivated by the difficulty in estimating precisely the probability law for asset returns. Our contribution is to develop a...

Persistent link: https://www.econbiz.de/10005504745

Mortality Risks, Education and Child Labour

Baland, Jean-Marie; Estevan, Fernanda - C.E.P.R. Discussion Papers - 2006

absence of appropriate insurance mechanisms, the level of child labour is inefficient, but it can be too high or too low. It …

Persistent link: https://www.econbiz.de/10005498071

Auctions with Anticipated Emotions: Overbidding, Underbidding, and Optimal Reserve Prices

Roider, Andreas; Schmitz, Patrick W - C.E.P.R. Discussion Papers - 2007

The experimental literature has documented that there is overbidding in second-price auctions, regardless of bidders' valuations. In contrast, in first-price auctions there tends to be overbidding for large valuations, but underbidding for small valuations. We show that the experimental evidence...

Persistent link: https://www.econbiz.de/10005498113

Party Governance and Political Competition with an Application to the American Direct Primacy

Castanheira, Micael; Crutzen, Benoît SY; Sahuguet, Nicolas - C.E.P.R. Discussion Papers - 2005

interact to shape these incentives. We also get new insights on the role of information, polarization, and on the value of …

Persistent link: https://www.econbiz.de/10005498196

Paying for Confidence: An Experimental Study of the Demand for Non-Instrumental Information

Eliaz, Kfir; Schotter, Andrew - C.E.P.R. Discussion Papers - 2009

willing to pay for information on the likelihood that this decision is ex-post optimal, even if this information will not … affect their decision. Our findings suggest that this demand for non-instrumental information is caused by what we refer to … be caused by an intrinsic preference for information, failure of backward induction or an attempt to minimize thinking …

Persistent link: https://www.econbiz.de/10004976787

Robustly Optimal Monetary Policy in a Microfounded New Keynesian Model

Adam, Klaus; Woodford, Michael - C.E.P.R. Discussion Papers - 2012

We consider optimal monetary stabilization policy in a New Keynesian model with explicit microfoundations, when the central bank recognizes that private-sector expectations need not be precisely model-consistent, and wishes to choose a policy that will be as good as possible in the case of any...

Persistent link: https://www.econbiz.de/10011083361