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Education, Disappointment and Optimal Policy
Anderberg, Dan; Cerrone, Claudia - CESifo - 2014
potentially loss averse around their expected outcome make risky investments in education and we draw on optimal tax theory to … explore the design of policy. The model highlights the critical roles played by (i) the relationship between behavioural risk … preferences, standard risk aversion and labour supply behaviour, (ii) the risk properties of education, and (iii) the degree of …
Persistent link: https://www.econbiz.de/10011103402
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Optimal Policy and the Risk Properties of Human Capital Reconsidered
Anderberg, Dan - CESifo - 2008
This paper considers how optimal education and tax policy depends on the risk properties of human capital. It is … demonstrated that a key feature of human capital investments is whether they increase or decrease wage risk. In a benchmark model … considered to examine the robustness of these results. …
Persistent link: https://www.econbiz.de/10005766081
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The Impact of Financial (De-)Regulation on Current Account Balances
Moral-Benito, Enrique; Röhn, Oliver - CESifo - 2014
Both global imbalances and financial market (de-)regulation feature prominently among the potential causes of the global financial crisis, but they have been largely discussed separately. In this paper, we take a different angle and investigate the relationship between financial market...
Persistent link: https://www.econbiz.de/10011082830
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Public Good Provision with Robust Decision Making
Angelopoulos, Konstantinos; Economides, George; … - CESifo - 2012
In this paper, we study a two-country dynamic setup with environmental externalities and potential model misspecification in relation to this public good. Under model uncertainty, robust policies help to correct the inefficiencies associated with free riding on public good provision, implying...
Persistent link: https://www.econbiz.de/10010877702
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Jointness of Growth Determinants
Doppelhofer, Gernot; Weeks, Melvyn - CESifo - 2007
This paper introduces a new measure of dependence or jointness among explanatory variables. Jointness is based on the joint posterior distribution of variables over the model space, thereby taking model uncertainty into account. By looking beyond marginal measures of variable importance,...
Persistent link: https://www.econbiz.de/10005094441
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Unraveling the Fortunates of the Fortunate: An Iterative Bayesian Model Averaging (IBMA) Approach
Eicher, Theo; Papageorgiou, Chris; Röhn, Oliver - CESifo - 2007
We investigate country heterogeneity in cross-country growth regressions. In contrast to the previous literature that focuses on low-income countries, this study also highlights growth determinants in high-income (OECD) countries. We introduce Iterative Bayesian Model Averaging (IBMA) to address...
Persistent link: https://www.econbiz.de/10005094478
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The Determinants of Economic Growth in European Regions
Crespo-Cuaresma, Jesús; Doppelhofer, Gernot; … - CESifo - 2009
We use Bayesian Model Averaging (BMA) to evaluate the robustness of determinants of economic growth in a new dataset of …
Persistent link: https://www.econbiz.de/10005094484
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The Effects of Monetary Policy on Unemployment Dynamics under Model Uncertainty - Evidence from the US and the Euro Area
Altavilla, Carlo; Ciccarelli, Matteo - CESifo - 2009
This paper explores the role that the imperfect knowledge of the structure of the economy plays in the uncertainty surrounding the effects of rule-based monetary policy on unemployment dynamics in the euro area and the US. We employ a Bayesian model averaging procedure on a wide range of models...
Persistent link: https://www.econbiz.de/10005051516
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Monetary Policy, Model Uncertainty and Exchange Rate Volatility
Markiewicz, Agnieszka - CESifo - 2010
This paper proposes an explanation of the shifts in the volatility of exchange rate returns that relies on standard present value exchange rate models. Agents are uncertain about the true data generating model and deal with the model uncertainty by making inference on the models and their...
Persistent link: https://www.econbiz.de/10008596599
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Robustness of a Simple Rule for the Social Cost of Carbon
Rezai, Armon; Ploeg, Frederick Van der - CESifo - 2014
The optimal social cost of carbon is in general equilibrium proportional to GDP if utility is logarithmic, production is Cobb-Douglas, depreciation is 100% every period, climate damages as fraction of production decline exponentially with the stock of atmospheric carbon, and fossil fuel...
Persistent link: https://www.econbiz.de/10011264742