-
作者：Bonilla, Roberto; Kiraly, Francis; Wildman, John
作者单位：Newcastle University - UK
摘要：We propose a theoretical explanation for the so-called beauty premium. Our approach relies entirely on search frictions and the fact that physical appearance plays an important role in attracting a marriage partner. We analyze the interaction between frictional labor and marriage markets, making use of what we label constrained job search. The optimal strategy entails different reservation wages for different men, and we establish the existence of a search equilibrium characterized by a beauty...
-
作者：Ioannou, Christos A.; Makris, Miltiadis
作者单位：University of Kent
摘要：Global games and Poisson games have been proposed to address equilibrium indeterminacy in Common Knowledge Coordination games. The present study investigates in a controlled setup, using as controls Common Knowledge games, whether idiosyncratic uncertainty about economic fundamentals (Global games) or uncertainty about the number of actual players (Poisson games) may influence subjects' behavior. We find that uncertainty about the number of actual players has more influence on subjects' behavi...
-
作者：Gossner, Olivier; Kuzmics, Christoph
作者单位：Institut Polytechnique de Paris; ENSAE Paris; Centre National de la Recherche Scientifique (CNRS); Ecole Polytechnique; University of London; London School Economics & Political Science; University of Graz
摘要：A decision maker (DM) makes choices from different sets of alternatives. The DM is initially ignorant of the payoff associated with each alternative and learns these payoffs only after a large number of choices have been made. We show that, in the presence of an outside option, once payoffs are learned, the optimal choice rule from sets of alternatives can be rationalized by a DM with strict preferences over all alternatives. Under this model, the DM has preferences for preferences while being...
-
作者：Dong, Mei; Xiao, Sylvia Xiaolin
作者单位：University of Melbourne; Peking University
摘要：We discover a consumption channel of monetary policy in a model with money and government bonds. When the central bank withdraws government bonds (short-term or long-term) through open market operations, it lowers returns on bonds. The lower return has a direct negative impact on consumption by households that hold bonds and an indirect negative impact on consumption by households that hold money. As a result, firms earn less profits from production, which leads to higher unemployment. The exi...
-
作者：Hammond, Robert G.; Liu, Bin; Lu, Jingfeng; Riyanto, Yohanes E.
作者单位：North Carolina State University; The Chinese University of Hong Kong, Shenzhen; National University of Singapore; Nanyang Technological University
摘要：Entry fees are widely observed in contests. We study the effect of a prize-augmenting entry fee on expected total effort in an all-pay auction setting where the contestants' abilities are private information. An entry fee reduces equilibrium entry but can enhance the entrants' effort supply. Our theoretical model demonstrates that the optimal entry fee is strictly positive and finite. In a laboratory experiment, we empirically test the effect of entry fees on effort supply. Our results provide...
-
作者：D'Alessandro, Antonello; Fella, Giulio; Melosi, Leonardo
作者单位：European Central Bank; Bank of Italy; University of London; Queen Mary University London; Federal Reserve System - USA; Federal Reserve Bank - Chicago
摘要：Using a Bayesian structural vector autoregression analysis, we document that an increase in government purchases raises private consumption, the real wage, and total factor productivity (TFP) while reducing inflation. These three facts are hard to reconcile with both neoclassical and New Keynesian models. We extend a standard New Keynesian model to allow for skill accumulation through past work experience. An increase in government spending increases hours and induces skill accumulation and hi...
-
作者：Loh, Isaac; Phelan, Gregory
作者单位：Northwestern University; Williams College
摘要：We provide a model of boundedly rational, multidimensional learning and characterize when beliefs will converge to the truth. Agents maintain beliefs as marginal probabilities instead of joint probabilities, and agents' information is of lower dimension than the model. As a result, for some observations, agents may face an identification problem affecting the role of data in inference. Beliefs converge to the truth when these observations are rare, but beliefs diverge when observations present...
-
作者：Nevo, Aviv; Wong, Arlene
作者单位：University of Pennsylvania; National Bureau of Economic Research; Princeton University
摘要：We document a change in household shopping behavior during the Great Recession. Households purchased more on sale, larger sizes, and generic products and increased coupon usage and shopping at discount stores. We estimate a decline in returns to shopping during the recession. Therefore, the increase in shopping behavior implies a significant decrease in households' opportunity cost of time. Using the estimated cost of time and time use data, we estimate a high elasticity of substitution betwee...
-
作者：Aruoba, S. Boragan; Drazen, Allan; Vlaicu, Razvan
作者单位：University System of Maryland; University of Maryland College Park; National Bureau of Economic Research; Centre for Economic Policy Research - UK; Inter-American Development Bank
摘要：This article proposes a structural approach to measuring the effects of electoral accountability. We estimate a political agency model with imperfect information in order to identify and quantify discipline and selection effects, using data on U.S. governors. We find that the possibility of reelection provides a significant incentive for incumbents to exert effort, that is, a disciplining effect. We also find a positive but weaker selection effect. According to our model, the widely used two-t...
-
作者：Bignon, Vincent; Breton, Regis; Breu, Mariana Rojas
作者单位：European Central Bank; Bank of France; Centre for Economic Policy Research - UK; Universite PSL; Universite Paris-Dauphine
摘要：We build a symmetric two-country monetary model with credit to study the interplay between currency integration and credit markets integration. The currency arrangement affects credit availability through default incentives. We capture credit markets integration by the extra cost incurred to obtain credit for cross-border transactions and, with the euro area context in mind, label as banking union a situation where this cost is low. For high levels of the cross-border credit cost, currency int...
