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Paying to Match : Decentralized Markets with Information Frictions

Agranov, Marina; Dianat, Ahrash; Samuelson, Larry; … - 2021

We experimentally study decentralized one-to-one matching markets with transfers. We vary the information available to participants, complete or incomplete, and the surplus structure, supermodular or submodular. Several insights emerge. First, while markets often culminate in efficient...

Persistent link: https://www.econbiz.de/10013250740

A Simple Model of Buyer-Seller Networks in International Trade

Herkenhoff, Philipp; Krautheim, Sebastian; Sauré, Philip U. - 2021

The recent literature on firm-to-firm trade has documented salient empirical regularities of the buyer-seller network …

Persistent link: https://www.econbiz.de/10013224077

Roman Transport Network Connectivity and Economic Integration

Flückiger, Matthias - 2019

We show that the creation of the first integrated pan-European transport network during Roman times influences economic … interregional trade was strongly influenced by connectivity within the network. Today, these connectivity differentials continue to … cultural integration due to bilateral convergence in preferences and values. Both plausibly arise from network-induced history …

Persistent link: https://www.econbiz.de/10012866077

Barriers to Global Capital Allocation

Pellegrino, Bruno; Spolaore, Enrico; Wacziarg, Romain T. - 2021

We quantify the impact of barriers to international investment, using a novel multi-country dynamic general equilibrium model with heterogeneous investors and imperfect capital mobility. Our model yields a gravity equation for bilateral foreign asset positions. We estimate this gravity equation...

Persistent link: https://www.econbiz.de/10013226659

Do Survey Expectations of Stock Returns Reflect Risk-Adjustments?

Adam, Klaus - 2019

Motivated by the observation that survey expectations of stock returns are inconsistent with rational return expectations under real-world probabilities, we investigate whether alternative expectations hypotheses entertained in the asset pricing literature are consistent with the survey...

Persistent link: https://www.econbiz.de/10012892287

Measuring Market Expectations

Baumeister, Christiane - 2021

Asset prices are a valuable source of information about financial market participants.expectations about key macroeconomic variables. However, the presence of time-varying risk premia requires an adjustment of market prices to obtain the market’s rational assessment of future price and policy...

Persistent link: https://www.econbiz.de/10013211729

Bank Risk Dynamics and Distance to Default

Nagel, Stefan - 2019

We adapt structural models of default risk to take into account the special nature of bank assets. The usual assumption of log-normally distributed asset values is not appropriate for banks. Typical bank assets are risky debt claims, which implies that they embed a short put option on the...

Persistent link: https://www.econbiz.de/10012866407

R Minus G

Barro, Robert J. - 2021

Long-term data show that the dynamic efficiency condition rg holds when g is represented by the average growth rate of real GDP if r is the average real rate of return on equity, E(re ), but not if r is the risk-free rate, rf . This pattern accords with a simple disaster-risk model calibrated to...

Persistent link: https://www.econbiz.de/10013315040

The Financial Channel of the Exchange Rate and Global Trade

Ma, Sai; Schmidt-Eisenlohr, Tim - 2023

This paper provides evidence that the U.S. dollar affects countries’ exports through the financial channel of the exchange rate (Bruno and Shin (2015)). Using global data on trade between countries whose currency is not the U.S. dollar, it documents a positive relationship between the dollar...

Persistent link: https://www.econbiz.de/10014347836

Five Facts About Beliefs and Portfolios

Giglio, Stefano - 2019

We administer a newly-designed survey to a large panel of retail investors who have substantial wealth invested in financial markets. The survey elicits beliefs that are crucial for macroeconomics and finance, and matches respondents with administrative data on their portfolio composition and...

Persistent link: https://www.econbiz.de/10012866380