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In this paper, we examine the results of GDP trend-cycle decompositions from the estimation of bivariate unobserved components models that allow for correlated trend and cycle innovations. Three competing variables are considered in the bivariate setup along with GDP: the unemployment rate, the...
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/Shiller crash confidence index and the Duke/CFO survey responses, and yet contain additional information. Our analysis points out …
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This research examines the development of confidence and accuracy over time in the context of forecasting. Although … to structure the questions, interactions, and elicitation to improve forecasts. Indeed, forecasters’ confidence roughly … matched their accuracy. As information came in, accuracy increased. Confidence increased at approximately the same rate as …
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Prior research establishes that boards of directors can encourage risk-averse managers to take risky actions by providing stock options and severance pay. We demonstrate that the ability of these incentives to encourage risk-taking hinges on the level of uncertainty facing the manager, and that...
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