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Kucinskas, Simas - 2015

I revisit the Diamond-Dybvig model of liquidity insurance in the presence of hidden trades. The key result is that in this environment deposit-taking banks are not necessary for the efficient provision of liquidity. Mutual funds are constrained efficient when supplemented with the same...

Persistent link: https://www.econbiz.de/10011403560

Aggregate Risk and Efficiency of Mutual Funds

Kucinskas, Simas - 2015

I analyze welfare properties of mutual funds in the Diamond-Dybvig model with two sources of aggregate risk: undiversifiable interest rate risk and shocks to aggregate liquidity demand. Mutual funds are inefficient when the economy faces undiversifiable interest rate risk. However, if only...

Persistent link: https://www.econbiz.de/10011403571

Pension Fund Restoration Policy In General Equilibrium

Kastelein, Pim B.; Romp, Ward E. - 2018

When the financial positions of pension funds worsen, regulations prescribe that pension funds reduce the gap between their assets (invested contributions) and their liabilities (accumulated pension promises). This paper quantifies the business cycle effects and distributional implications of...

Persistent link: https://www.econbiz.de/10011932324

Shooting the Messenger? Supply and Demand in Markets for Willful Ignorance

Shalvi, Shaul; Soraperra, Ivan; van der Weele, Joël J.; … - 2019

We investigate the role of advisers in the transmission of ethically relevant information, a critical aspect of executive decision making in organizations. In our laboratory experiment, advisers are informed about the negative externalities associated with the decision-maker's choices and...

Persistent link: https://www.econbiz.de/10012114824

Denial and Alarmism in Collective Action Problems

Förster, Manuel; van der Weele, Joël J. - 2018

We analyze communication about the social returns to investment in a public good. We model two agents who have private information about these returns as well as their own taste for cooperation, or social preferences. Before deciding to contribute or not, each agent submits an unverifiable...

Persistent link: https://www.econbiz.de/10011819534

HIV/AIDS, Risk Aversion and Intertemporal Choice

Lammers, Judith; van Wijnbergen, Sweder - 2007

This study analyses the relation between perceived health status and intertemporal choice. We use data from experiments with real monetary rewards conduEted among students in South Africa to estimate risk and time preferences. These experimental data, based on muitiple price lists developed by...

Persistent link: https://www.econbiz.de/10010325511

Eliciting Discount Functions when Baseline Consumption changes over Time

Gerber, Anke; Rohde, Kirsten I.M. - 2009

Many empirical studies on intertemporal choice report preference reversals in the sensethat a preference between a small reward to be received soon and a larger reward to bereceived later reverses as both rewards are equally delayed. Such preference reversals arecommonly interpreted as...

Persistent link: https://www.econbiz.de/10010325966

Insurance and Information: Firms as a Commitment Device

Bovenberg, A.L.; Teulings, Coen N. - 2001

We explore the role of firms in insuring non-verifiable output. As a device that allows workers to commit to thedelivery of their output, the firm arises endogenously as an alternative to the market if workers are sufficiently riskaverse and the firm can base its incentive payments on good...

Persistent link: https://www.econbiz.de/10010325071

A Theory on Media Bias and Elections

Sun, Junze; Schram, Arthur; Sloof, Randolph - 2019

on whether media have commitment power; if not, they can worsen information transmission and voter welfare. …

Persistent link: https://www.econbiz.de/10012114801

The Political Economy of Commitment to Policies

Delfgaauw, Josse; Swank, Otto H. - 2023

redistributive concerns to the trade-off between commitment and flexibility. When a majority of citizens invest, redistributive … commitment. We study policymakers' incentives to commit. A policymaker decides on a policy to encourage citizens to make … investments and determines the degree of flexibility to change the policy after investments have been made. This adds …

Persistent link: https://www.econbiz.de/10014469588