Consumption Commitments: Neoclassical Foundations for Habit
... coincide precisely with those of existing representative-consumer habit models. In this sense, consumption commitments provide neoclassical micro-foundations for habit formation.2 The intuition underlying the connection between commitments and habit can be seen with an example. Consider an individua ...
... coincide precisely with those of existing representative-consumer habit models. In this sense, consumption commitments provide neoclassical micro-foundations for habit formation.2 The intuition underlying the connection between commitments and habit can be seen with an example. Consider an individua ...
University of Groningen Behavioral corporate governance van der
... realized that their private benefits were greatly enhanced when the spices, imported from what now is the Republic of Indonesia, were sold to their own trading company below the market price, instead of being offered on the market by the VOC. Obviously, the effects of this transfer pricing policy on ...
... realized that their private benefits were greatly enhanced when the spices, imported from what now is the Republic of Indonesia, were sold to their own trading company below the market price, instead of being offered on the market by the VOC. Obviously, the effects of this transfer pricing policy on ...
Luxury Good Demand - eScholarship@BC
... Capita Consumption, Luxury Consumption and the Presidential Puzzle: A Partial Resolution, show that differences in luxury consumption growth across the presidential cycle are directly related to the business cycle [ see Campbell and Canlin (2003)]. Therefore, it would be interesting to see whether ...
... Capita Consumption, Luxury Consumption and the Presidential Puzzle: A Partial Resolution, show that differences in luxury consumption growth across the presidential cycle are directly related to the business cycle [ see Campbell and Canlin (2003)]. Therefore, it would be interesting to see whether ...
An Empirical Test of the Validity of the Capital Asset Pricing Model
... the length of the prediction period. Whereas the debate on the ...
... the length of the prediction period. Whereas the debate on the ...
Chapter 1 - Pearson Higher Education
... people who watch less television to have an exaggerated view of the level of violence that occurs outside their home and they have a greater fear of being personally assaulted. ...
... people who watch less television to have an exaggerated view of the level of violence that occurs outside their home and they have a greater fear of being personally assaulted. ...
Measuring Swedish Investor Sentiment Stock Market Response to
... rationality. More specifically, but simplified, it rests on three propositions: 1. investors (and other economic agents) are rational actors who seek to maximize a utility function; 2. financial markets are perfectly competitive, and; 3. information is publicly available. The behavioral school of fi ...
... rationality. More specifically, but simplified, it rests on three propositions: 1. investors (and other economic agents) are rational actors who seek to maximize a utility function; 2. financial markets are perfectly competitive, and; 3. information is publicly available. The behavioral school of fi ...
Determination of Risk Aversion and Moment
... In the first part empirical estimation of selected socioeconomic factor coefficients that determine risk preference is carried out by OLS, WLS, Tobit, Ordered Logit and Multinomial Logit models. The Survey of Consumer Finances 1995 and 1998 proves to be the ideal data sample for this purpose. The preli ...
... In the first part empirical estimation of selected socioeconomic factor coefficients that determine risk preference is carried out by OLS, WLS, Tobit, Ordered Logit and Multinomial Logit models. The Survey of Consumer Finances 1995 and 1998 proves to be the ideal data sample for this purpose. The preli ...
The development of the risky financial behavior scale: A measure of
... based on others’ opinions, whether they were affected by mood or were completely rational. There are two main approaches used for studying human financial decisions. One is considered to be the dominant traditional approach—using economic and financial normative models. The other approach relies on ...
... based on others’ opinions, whether they were affected by mood or were completely rational. There are two main approaches used for studying human financial decisions. One is considered to be the dominant traditional approach—using economic and financial normative models. The other approach relies on ...
The relationship between government bond yields and the market
... In our view, there is a substantial body of evidence to support the propositions that, since the AER’s 2013 Guideline: a. The required return on equity has remained relatively stable; and b. The MRP has increased at the same time that government bond ...
... In our view, there is a substantial body of evidence to support the propositions that, since the AER’s 2013 Guideline: a. The required return on equity has remained relatively stable; and b. The MRP has increased at the same time that government bond ...
Financial Optimization Problems in Life and Pension Insurance
... they manage their policies? How should the systematic surplus that typically emerges over the policy terms (due to the prudent assessment of future interest rates) be redistributed to the policyholder(s)? What criteria should be imposed to ensure that policies are fair ? What happens if the actual y ...
... they manage their policies? How should the systematic surplus that typically emerges over the policy terms (due to the prudent assessment of future interest rates) be redistributed to the policyholder(s)? What criteria should be imposed to ensure that policies are fair ? What happens if the actual y ...
Leadership, collective decision-making, and pension fund
... every instance, many analysts now begin with a radically different premise: given the cognitive limits of human beings, when making decisions under risk and uncertainty it is assumed that people use heuristics or short-cuts in taming complex decisionmaking problems even if, in doing so, they produce ...
... every instance, many analysts now begin with a radically different premise: given the cognitive limits of human beings, when making decisions under risk and uncertainty it is assumed that people use heuristics or short-cuts in taming complex decisionmaking problems even if, in doing so, they produce ...
How to Use the Graphic Organizers?
... mong the brain’s many functions is the ability to think (Parry and Gregory, 1998), but many students do not have the skills necessary for the more “higher-order” creative and critical thinking needed to thrive both within and beyond the economics lessons. Generally speaking, there are five different ...
... mong the brain’s many functions is the ability to think (Parry and Gregory, 1998), but many students do not have the skills necessary for the more “higher-order” creative and critical thinking needed to thrive both within and beyond the economics lessons. Generally speaking, there are five different ...
LEARninG - numerons
... much of human learning, too. Thus, the same mechanisms that explain how barn swallows learn to operate an automated door can account for a professional athlete’s bizarre superstitions. Indeed, many of the most fascinating discoveries in the study of learning originated in studies of animals. In this ...
... much of human learning, too. Thus, the same mechanisms that explain how barn swallows learn to operate an automated door can account for a professional athlete’s bizarre superstitions. Indeed, many of the most fascinating discoveries in the study of learning originated in studies of animals. In this ...
5200 P R :
... entitled to ask for a fair return upon the value of that which it employs for the public convenience’. At the same time, the Court ruled that consumers deserved protection, as well: ‘while the public is entitled to demand ... that no more be extracted from it ... than the services are reasonably wor ...
... entitled to ask for a fair return upon the value of that which it employs for the public convenience’. At the same time, the Court ruled that consumers deserved protection, as well: ‘while the public is entitled to demand ... that no more be extracted from it ... than the services are reasonably wor ...
5200 - Reference
... entitled to ask for a fair return upon the value of that which it employs for the public convenience’. At the same time, the Court ruled that consumers deserved protection, as well: ‘while the public is entitled to demand ... that no more be extracted from it ... than the services are reasonably wor ...
... entitled to ask for a fair return upon the value of that which it employs for the public convenience’. At the same time, the Court ruled that consumers deserved protection, as well: ‘while the public is entitled to demand ... that no more be extracted from it ... than the services are reasonably wor ...
Household Heterogeneity and Incomplete Financial Markets: Asset Return Implications in a
... Using the previous firm objectives, we analyze the asset pricieng implications of the model from two different perspectives in chapters 2 and 3. Each chapter provides its own introduction and conclusions, raising the questions addressed and highlighting the main results obtained. In chapter 2, the st ...
... Using the previous firm objectives, we analyze the asset pricieng implications of the model from two different perspectives in chapters 2 and 3. Each chapter provides its own introduction and conclusions, raising the questions addressed and highlighting the main results obtained. In chapter 2, the st ...
Realization Utility with Reference
... In a static prospect theory setting, the reference level is essentially a parameter of the utility function defining the status quo. However, in our dynamic model, we must address how it is updated and exactly how the gain or loss is measured relative to it. The simplest rule is to set R at the net ...
... In a static prospect theory setting, the reference level is essentially a parameter of the utility function defining the status quo. However, in our dynamic model, we must address how it is updated and exactly how the gain or loss is measured relative to it. The simplest rule is to set R at the net ...
Interacting Limit Order Demand and Supply Curves
... between daily market-level demand and supply elasticities lies between -0.67 and -0.83. The average within-month correlation between the daily demand and supply elasticities for individual firms ranges between -0.20 and -0.28. 5 That is, stocks that develop unusually elastic demand schedules tend si ...
... between daily market-level demand and supply elasticities lies between -0.67 and -0.83. The average within-month correlation between the daily demand and supply elasticities for individual firms ranges between -0.20 and -0.28. 5 That is, stocks that develop unusually elastic demand schedules tend si ...
Key Credit Factors For The Regulated Utilities
... 3. These criteria apply to entities where regulated utilities represent a material part of their business, other than U.S. public power, water, sewer, gas, and electric cooperative utilities that are owned by federal, state, or local governmental bodies or by ratepayers. A regulated utility is defin ...
... 3. These criteria apply to entities where regulated utilities represent a material part of their business, other than U.S. public power, water, sewer, gas, and electric cooperative utilities that are owned by federal, state, or local governmental bodies or by ratepayers. A regulated utility is defin ...
CHAPTER 11
... A Multifactor Security Market Line Therefore, one interpretation of the SML is that investors are rewarded with a higher expected return for their exposure to macro risk, based on both the sensitivity to that risk (beta) as well as the compensation for bearing each unit of that source of risk (i. ...
... A Multifactor Security Market Line Therefore, one interpretation of the SML is that investors are rewarded with a higher expected return for their exposure to macro risk, based on both the sensitivity to that risk (beta) as well as the compensation for bearing each unit of that source of risk (i. ...
What Causes Herding: Information Cascade or Search Cost ?
... possible implications of different levels of herding on the market, since empirical relationships are established between herding intensity and market volatility. The results could prove highly relevant in achieving a better understanding of market functioning and serve both academics and practition ...
... possible implications of different levels of herding on the market, since empirical relationships are established between herding intensity and market volatility. The results could prove highly relevant in achieving a better understanding of market functioning and serve both academics and practition ...
Export Subsidies in Agriculture and High
... including food aid from developed countries to poor countries. Europe has already eliminated direct food subsidies and argues that cash aid to poor countries is much more effective. The U.S. continues to export agricultural commodities as aid. ...
... including food aid from developed countries to poor countries. Europe has already eliminated direct food subsidies and argues that cash aid to poor countries is much more effective. The U.S. continues to export agricultural commodities as aid. ...
Relative Wealth Concerns and Financial Bubbles
... promote the creation of price bubbles. In this case, starting from optimal risk sharing, a small deviation by one agent may induce other agents to deviate such that the aggregate response leads to an amplification of the original deviation. As a result, optimal risk sharing will not be stable, and a ...
... promote the creation of price bubbles. In this case, starting from optimal risk sharing, a small deviation by one agent may induce other agents to deviate such that the aggregate response leads to an amplification of the original deviation. As a result, optimal risk sharing will not be stable, and a ...
Business Models in Accounting
... issues, and those involved in debates on financial reporting have often drawn on thinking from different branches of economics either to defend existing practices or to justify new ones. The extent to which the insights of economics can be translated into practically useful accounting techniques, ho ...
... issues, and those involved in debates on financial reporting have often drawn on thinking from different branches of economics either to defend existing practices or to justify new ones. The extent to which the insights of economics can be translated into practically useful accounting techniques, ho ...
Rothbard on Consumer Sovereignty and His Implicit Rejection of
... goals that he aimed to achieve in his book. The fundamental goal is to put the reader in a position to evaluate arguments favoring or opposed to intervention, or interventionist arguments.4 I useBecause everyone agrees with the law of the higher productivity of the division of labor, it is sensible ...
... goals that he aimed to achieve in his book. The fundamental goal is to put the reader in a position to evaluate arguments favoring or opposed to intervention, or interventionist arguments.4 I useBecause everyone agrees with the law of the higher productivity of the division of labor, it is sensible ...