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作者：Luo, Yulei; Nie, Jun; Wang, Gaowang; Young, Eric R.
作者单位：University of Hong Kong; Federal Reserve System - USA; Federal Reserve Bank - Kansas City; Shandong University; University of Virginia; Zhejiang University
摘要：We propose a recursive utility version of a basic Huggett (1993) model to study the implications of rational inattention (or RI, Sims, 2003, 2010) for the cross-sectional dispersion of consumption and wealth (relative to income) in general equilibrium. We find that incorporating RI can significantly improve the model's predictions in both dimensions in general equilibrium. In addition, we find that intertemporal substitution plays an important role in determining the two key dispersion moments...
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作者：Mitra, Tapan; Roy, Santanu
作者单位：Cornell University; Southern Methodist University
摘要：For the canonical one sector stochastic optimal growth model, we outline a new set of conditions for a policy function that satisfies the Ramsey Euler equation to be optimal. An interior Ramsey Euler policy function is optimal if, and only if, it is continuous or alternatively, if, and only if, both consumption and investment are non-decreasing in output. In particular, we show that under these conditions, the stochastic paths generated by the policy must satisfy the transversality condition; ...
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作者：Robatto, Roberto; Szentes, Balazs
作者单位：University of Wisconsin System; University of Wisconsin Madison; University of London; London School Economics & Political Science
摘要：This paper considers a continuous-time biological model in which the growth rate of a population is determined by the risk attitude of its individuals. We consider choices over lotteries which determine the number of offspring and involve both idiosyncratic and aggregate risks. We distinguish between two types of aggregate risk: environmental variations and natural disasters. Environmental variations influence the death and birth rates, while natural disasters result in instantaneous drops in ...
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作者：Schummer, James; Abizada, Azar
作者单位：Northwestern University; Ministry of Education of Azerbaijan Republic; ADA University
摘要：During weather-induced airport congestion, landing slots are reassigned based on flights' feasible arrival times and cancelations. We consider the airlines' incentives to report such information and to execute cancelations, creating positive spillovers for other flights. We show that such incentives conflict with Pareto-efficiency, partially justifying the FAA's non-solicitation of delay costs. We provide mechanisms that, unlike the FAA's current mechanism, satisfy our incentive properties to ...
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作者：Lenkey, Stephen L.
作者单位：Pennsylvania Commonwealth System of Higher Education (PCSHE); Pennsylvania State University; Pennsylvania State University - University Park
摘要：The short-swing profit rule is a federal statute that requires insiders to forfeit any trading profit earned from a combined purchase and sale that occurs within a six-month period. Using a multi-period strategic rational expectations equilibrium framework, I demonstrate that the rule tends to reduce both the amount of insider trading and the amount of profit earned by an informed insider from information-based trades because the rule imposes a constraint on the insider's dynamic trading strat...
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作者：Aguiar, Victor H.; Serrano, Roberto
作者单位：Western University (University of Western Ontario); Brown University
摘要：Given any observed demand behavior-by means of a demand function, we quantify by how much it departs from rationality. The measure of the gap is the smallest Frobenius norm of the correcting matrix function that would yield a Slutsky matrix with its standard rationality properties (symmetry, singularity, and negative semidefiniteness). As a result, we are able to suggest a useful classification of departures from rationality, corresponding to three anomalies: inattentiveness to changes in purc...
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作者：Eraslan, Hulya; Merlo, Antonio
作者单位：Rice University
摘要：It is commonly believed that voting rules that are relatively more inclusive (e.g., unanimity or supermajority), are likely to yield relatively more equitable outcomes than simple-majority rule. We show that this is not necessarily the case in bargaining environments. We study a multilateral bargaining model a la Baron and Ferejohn (1989), where players are heterogeneous with respect to the potential surplus they bring to the bargaining table. We show that unanimity rule may generate equilibri...
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作者：Amir, Rabah; Erickson, Philip; Jin, Jim
作者单位：University of Iowa; University of St Andrews
摘要：This paper provides a thorough exploration of the microeconomic foundations for the multi-variate linear demand function for differentiated products, which is widely used in industrial organization. The setting is the standard representative consumer with a quasi-linear utility function. A key finding is that strict concavity of the quadratic utility function is critical for the demand system to be well defined. Otherwise, the true demand function may be quite complex: Multi-valued, non-linear...
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作者：Celen, Bogachan; Schotter, Andrew; Blanco, Mariana
作者单位：New York University; University of Melbourne; New York University; New York University; Universidad del Rosario
摘要：The theory of reciprocity is predicated on the assumption that people are willing to reward kind acts and to punish unkind ones. This assumption raises the question of what kindness is. In this paper, we offer a novel definition of kindness based on a notion of blame. This notion states that for player j to judge whether or not player i is kind to him, player j has to put himself in the position of player i, and ask if he would act in a manner that is worse than what he believes player i does....
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作者：Gauthier, Stephan; Laroque, Guy
作者单位：Paris School of Economics; heSam Universite; Universite Pantheon-Sorbonne; Institut d'Etudes Politiques Paris (Sciences Po); University of London; University College London; University of London; London School Economics & Political Science
摘要：A government designs anonymous income transfers between a continuum of citizens whose income valuation is privately known. When transfers are deterministic, the incentive constraints imply equal treatment independently of the government's taste for redistribution. We study whether random transfers may locally improve upon the egalitarian outcome. A suitable Taylor expansion offers an approximation of the utility function by a quasilinear function. The methodology developed by Myerson to deal w...
