Showing 1 - 10 of 312
One of the main objectives of empirical analysis of experiments and quasi-experiments is to inform policy decisions that determine the allocation of treatments to individuals with different observable covariates. We propose the Empirical Welfare Maximization (EWM) method, which estimates a...
Persistent link: https://www.econbiz.de/10011196513
This paper modifies the Wald development of statistical decision theory to offer new perspective on the performance of certain statistical treatment rules. We study the quantile performance of test rules, ones that use the outcomes of hypothesis tests to allocate a population to two treatments....
Persistent link: https://www.econbiz.de/10010933266
We use experimental data to disentangle signaling and budgetary effects of price on wine demand. The experimental design allow us to isolate in a simple and intuitive way the two effects. The signaling effect is present and nonlinear: it is strongly positive between EUR3 and EUR5, and...
Persistent link: https://www.econbiz.de/10010748222
Planners of surveys and experiments that partially identify parameters of interest face trade offs between using limited resources to reduce sampling error and using them to reduce the extent of partial identification. I evaluate these trade offs in a simple statistical problem with normally...
Persistent link: https://www.econbiz.de/10005013921
We study financial markets in which both rational and overconfident agents coexist and make endogenous information acquisition decisions. We demonstrate the following irrele- vance result: when a positive fraction of rational agents (endogenously) decides to become informed in equilibrium,...
Persistent link: https://www.econbiz.de/10005405543
This paper studies a general equilibrium model with an investor controlled firm. Shareholders can vote on the firm’s production plan in an assembly. Prior to that they may trade shares on the stock market. Since stock market trades determine the distribution of votes, trading is strategic....
Persistent link: https://www.econbiz.de/10005405544
In a common-values election with two candidates voters receive a signal about which candidate is superior. They can acquire information that improves the precision of the signal. Electors differ in their information acquisition costs. For large electorates a non negligible fraction of voters...
Persistent link: https://www.econbiz.de/10005405545
We study the cores of non-atomic market games, a class of transferable utility co- operative games introduced by Aumann and Shapley [2], and, more in general, of those games that admit a na-continuous and concave extension to the set of ideal coalitions, studied by Einy, Moreno, and Shitovitz...
Persistent link: https://www.econbiz.de/10005405546
This paper explores the relationship between optimal leverage and credit risk under ownership links. It develops a structural model of a parent and a subsidiary, which issues debt in its own name under a guarantee by the parent. We find that zero leverage can be optimal for the guarantor, while...
Persistent link: https://www.econbiz.de/10005405547
The existence of collateral requirements to guarantee repayment on issued securities reduces in general the efficiency of competitive equilibria. The general equilibrium analysis is presented in a world where reputation plays no role, and the lender always expects a future payment equal to the...
Persistent link: https://www.econbiz.de/10005405548