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others. This paper presents a controlled experiment showing that this "curse of knowledge" can cause comparative …
Persistent link: https://www.econbiz.de/10011163925
points. The implications of this model are tested in an experiment in which participants have to make a consumption choice …
Persistent link: https://www.econbiz.de/10010957930
That institutions matter is widely accepted among economists and so are social norms as an important category of informal institutions. Social norms matter in many economic situations, but in particular for markets. The economic literature has studied the interrelation between markets and social...
Persistent link: https://www.econbiz.de/10011163978
How does the need to preserve government debt sustainability affect the optimal monetary and fiscal policy response to a liquidity trap? To provide an answer, we employ a small stochastic New Keynesian model with a zero bound on nominal interest rates and characterize optimal time-consistent...
Persistent link: https://www.econbiz.de/10011164117
This paper provides a two-part empirical analysis on how actuarial reduction rates for early retirement affect current pension payments in Germany and to what extent the existence and the magnitude of these reduction rates influence people s retirement planning. First, by evaluating a large...
Persistent link: https://www.econbiz.de/10011163890
The design and analysis of optimal monetary policy is usually guided by the paradigm of homogeneous rational expectations. Instead, we examine the dynamic consequences of implementation strategies, when the actual economy features expectational heterogeneity. Agents have either rational or...
Persistent link: https://www.econbiz.de/10011164004
An emerging economic literature has found evidence that wellbeing follows a U-shape over age. Some theories have assumed that the U-shape is caused by unmet expectations that are felt painfully in midlife but beneficially abandoned and experienced with less regret during old age. In a unique...
Persistent link: https://www.econbiz.de/10011164086
This paper investigates whether information complementarities can explain the strong patterns of sectoral comovement observed empirically. It tests the theoretical model by Veldkamp and Wolfers (2007), which suggests that fi rms' output decisions are based on aggregate information rather than...
Persistent link: https://www.econbiz.de/10011212445
We present an experiment in which extrinsic signals may generate sunspot equilibria. The game has a unique symmetric …
Persistent link: https://www.econbiz.de/10010957267
Forming expectations about the future path of the economy and the own business prospects is not costless for a fi rm. Instead, acquiring and processing the relevant macroeconomic information requires valuable resources. One important source of information that provides a coding service is the...
Persistent link: https://www.econbiz.de/10010957928