This paper develops a sample selection model for fractional response variables, i.e., variables taking values in the [0, 1]-interval. It provides an extension of the Papke and Wooldridge (1996) fractional probit model to the case of non-random sample selectivity. The model differs from the...

Individual risk preference may change after experiencing external socio-economic or natural shocks. Theoretical predictions and empirical studies suggest that risk taking may increase or decrease after experiencing shocks. So far the empirical evidence is sparse, especially when it comes to...

This volume was prepared by Thomas Steinwachs while he was working at the ifo Center for International Economics. It was completed in September 2018 and accepted as a doctoral dissertation by the Department of Economics at the University of Munich (LMU). It is a collection of four self-contained...

We present a framework to identify market responses to the uncertainty regarding both potential hurricane landfall and subsequent economic impact. Stock options of firms with establishments in the landfall region exhibit large, long-lasting increases in implied volatility, reflecting impact...

We present a framework to identify market responses to the uncertainty regarding both potential hurricane landfall and subsequent economic impact. Stock options of firms with establishments in the landfall region exhibit large, long-lasting increases in implied volatility, reflecting impact...

We investigate the uncertainty dynamics surrounding extreme weather events through the lens of option and stock markets by identifying market responses to the uncertainty regarding both potential hurricane landfall and subsequent economic impact. Stock options on firms with establishments...

Individual risk preference may change after experiencing external socio-economic or natural shocks. Theoretical predictions and empirical studies suggest that risk taking may increase or decrease after experiencing shocks. So far the empirical evidence is sparse, especially when it comes to...

Natural disasters have increased in the U.S. over the past several decades. At the same time, there has been a shift of people away from the states in the Northeast and Midwest to areas in the Sunbelt, many of which face increased risks from natural disasters. Spatial equilibrium theory predicts...

This paper develops a three stage oligopoly game for R&D cooperation, R&D expenditure and product market competition. In the first stage, firms decide whether or not to conduct R&D in cooperation with other firms. In the second stage the level of R&D investment is determined. Finally, firms...

This paper investigates the determinants of firm-sponsored training which result from the Acemoglu-Pischke model (APM) empirically using German firm-level data on apprenticeship training. Acemoglu and Pischke (1999a, 1999b) demonstrate that wage compression may encourage employers to offer and...