Similar Search Results

Transaction costs and the robustness of the Coase Theorem

Anderlini, Luca; Felli, Leonardo - London School of Economics (LSE) - 2000

This paper explores the extent to which the presence of ex-ante transaction costs may lead to failures of the Coase Theorem. In particular we identify and investigate the basic ‘hold-up problem’ which arises whenever the parties to a Coasian negotiation have to pay some ex-ante costs for the...

Persistent link: https://www.econbiz.de/10010745037

Costly coasian contracts

Anderlini, Luca; Felli, Leonardo - London School of Economics (LSE) - 1998

We identify and investigate the basic ‘hold-up problem’ which arises whenever each party to a contract has to pay some ex-ante cost for the contract to become feasible. We then proceed to show that, under plausible circumstances, a ‘contractual solution’ to this hold-up problem is not...

Persistent link: https://www.econbiz.de/10010745370

Costly bargaining and renegotiation

Anderlini, Luca; Felli, Leonardo - London School of Economics (LSE) - 1998

We identify the inefficiencies that arise when negotiation between two parties takes place in the presence of transaction costs. First, for some values of these costs it is efficient to reach an agreement but the unique equilibrium outcome is one in which agreement is never reached. Secondly,...

Persistent link: https://www.econbiz.de/10010928645

Perceptions of risk : an experimental approach using internet questionnaires

Cowell, Frank; Cruces, Guillermo - London School of Economics (LSE) - 2003

Building on previous studies on perceptions of inequality, welfare and risk we investigate the structure of individuals …' rankings of uncertain prospects in terms of risk and their relationship to individual preferences. We examine three interlinked … propositions that are fundamental to the standard economic approach to risk: (i) that rankings by risk are simply the reverse of …

Persistent link: https://www.econbiz.de/10010744849

Understanding portfolio efficiency with conditioning information

Peñaranda, Francisco - London School of Economics (LSE) - 2009

Contrary to the classic framework of passive strategies, if investors exploit return predictability through active strategies then there is a tension between the mean-variance frontiers that drive empirical work and the mean-variance preferences that are used in finance theory. We show that...

Persistent link: https://www.econbiz.de/10011071262

Evaluation of joint density forecasts of stock and bond returns: predictability and parameter uncertainty

Peñaranda, Francisco - London School of Economics (LSE) - 2003

controversial questions are addressed for each model: time-variation in risk premia and parameter uncertainty. …

Persistent link: https://www.econbiz.de/10011071472

Risk-adjusted poverty in Argentina: measurement and determinants

Cruces, Guillermo; Wodon, Quentin - London School of Economics (LSE) - 2003

Relying on a Constant Relative Risk Aversion utility function, we use panel data for Argentina to compute risk …-adjusted income and poverty measures and to analyze their determinants. Taking risk into account increases poverty. The regression …

Persistent link: https://www.econbiz.de/10010746011

Income fluctuation, poverty and well-being over time: theory and application to Argentina

Cruces, Guillermo - London School of Economics (LSE) - 2005

This paper studies poverty as a dynamic phenomenon, motivated by the recurring economic crises that affect developing countries and the incidence of income fluctuations on household welfare. While the increasing availability of household panel data has been exploited in theoretical analysis and...

Persistent link: https://www.econbiz.de/10010746722