Similar Search Results

Monopolistic Competition and Optimum Product Selection: Why and how heterogeneity matters

Nocco, Antonella; Ottaviano, Gianmarco; Salto, Matteo - C.E.P.R. Discussion Papers - 2013

equilibrium seems to be largest when selection among heterogenous firms is needed most, that is, when there are relatively many …

Persistent link: https://www.econbiz.de/10011083607

Selection of Boundedly Rational Firms and the Allocation of Resources

Saint-Paul, Gilles - C.E.P.R. Discussion Papers - 2006

I study how savers allocate funds between boundedly rational firms which follow simple pricing rules. Firms need cash to pay their inputs in advance, and savers-shareholders allocate cash between them so as to maximize their rate of return. When the rate of return on each firm is observed, there...

Persistent link: https://www.econbiz.de/10005666616

How Darwinian should an economy be?

Saint-Paul, Gilles - C.E.P.R. Discussion Papers - 2014

This paper studies aggregate dynamics in a cobweb model where learning takes place through a selection mecanism, by … in a way that favors the most profitable firm types. Selection may be inadequate because firms are being selected on the … basis of incorrect market signals. Selection itself may reinforce such mispricing, thus generating instability. I compare …

Persistent link: https://www.econbiz.de/10011093687

The Catch-22 of External Validity in the Context of Constraints to Firm Growth

Fischer, Greg; Karlan, Dean S. - C.E.P.R. Discussion Papers - 2015

We document the presence of multiple and varied constraints to small and medium firm growth. This presents both a practical problem for business training programs and a challenge to academic economists trying to identify mechanisms though which these programs may affect outcomes. External...

Persistent link: https://www.econbiz.de/10011184078

Theory and the Market after the Crisis: the Endogeneity of Financial Governance

Underhill, Geoffrey R D - C.E.P.R. Discussion Papers - 2010

The inheritance of contemporary financial economics invites us to consider financial stability as integral to a liberal market setting. The crisis however demonstrated that financial markets may prove highly dysfunctional in the absence of adequate mechanisms of regulation and governance. This...

Persistent link: https://www.econbiz.de/10008784732

Firm Dynamics Support the Importance of the Embodied Question

Gabler, Alain; Licandro, Omar - C.E.P.R. Discussion Papers - 2009

endogenous growth model where selection and imitation play a fundamental role in helping capital good producers to learn about … technical progress and selection of around 60%. …

Persistent link: https://www.econbiz.de/10008459764

The Paradox of Declining Female Happiness

Stevenson, Betsey; Wolfers, Justin - C.E.P.R. Discussion Papers - 2009

By many objective measures the lives of women in the United States have improved over the past 35 years, yet we show that measures of subjective well-being indicate that women’s happiness has declined both absolutely and relative to men. The paradox of women’s declining relative well-being...

Persistent link: https://www.econbiz.de/10005036241

How Robust is the New Conventional Wisdom? The Surprising Fragility of the Theoretical Foundations of Inflation Targeting and Central Bank Independence

Buiter, Willem H. - C.E.P.R. Discussion Papers - 2006

Flexible inflation targeting cannot be rationalised using conventional welfare economic criteria, except in a single, practically uninteresting special case. New-Keynesian DSGE models imply that optimal monetary policy implements the Bailey-Friedman Optimal Quantity of Money rule and that actual...

Persistent link: https://www.econbiz.de/10005124349

Price Controls and Consumer Surplus

Bulow, Jeremy I.; Klemperer, Paul - C.E.P.R. Discussion Papers - 2009

The condition for when a price control increases consumer welfare in perfect competition is tighter than often realised. When demand is linear, a small restriction on price only increases consumer surplus if the elasticity of demand exceeds the elasticity of supply; with log-linear or...

Persistent link: https://www.econbiz.de/10004976788

Good rankings are bad - Why reliable rankings can hurt consumers

Bouton, Laurent; Kirchsteiger, Georg - C.E.P.R. Discussion Papers - 2011

Ranking have become increasingly popular on markets for study programs, restaurants, wines, cars, etc. This paper analyses the welfare implication of such rankings. Consumers have to make a choice between two goods of unknown quality with exogenous presence or absence of an informative ranking....

Persistent link: https://www.econbiz.de/10009385758