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Monetary Equilibrium And The Cost Of Banking Activity, Paola Boel, Gabriele Camera 2019 Sveriges Riksbank

Monetary Equilibrium And The Cost Of Banking Activity, Paola Boel, Gabriele Camera

ESI Working Papers

We investigate the effects of banks’ operating costs on allocations and welfare in a low interest rate environment. We introduce an explicit production function for banks in a microfounded model where banks employ labor resources, hired on a competitive market, to run their operations. In equilibrium, this generates a spread between interest rates on loans and deposits, which naturally reflects the underlying monetary policy and the efficiency of financial intermediation. In a deflation or low inflation environment, equilibrium deposits yield zero returns. Hence, banks end up soaking up labor resources to offer deposits that do not outperform idle balances, thus ...


A Correction For Regression Discontinuity Designs With Group-Specific Mismeasurement Of The Running Variable, Otávio Bartalotti, Quentin Brummet, Steven Dieterle 2019 Iowa State University

A Correction For Regression Discontinuity Designs With Group-Specific Mismeasurement Of The Running Variable, Otávio Bartalotti, Quentin Brummet, Steven Dieterle

Economics Working Papers

When the running variable in a regression discontinuity (RD) design is measured with error, identification of the local average treatment effect of interest will typically fail. While the form of this measurement error varies across applications, in many cases the measurement error structure is heterogeneous across different groups of observations. We develop a novel measurement error correction procedure capable of addressing heterogeneous mismeasurement structures by leveraging auxiliary information. We also provide adjusted asymptotic variance and standard errors that take into consideration the variability introduced by the estimation of nuisance parameters, and honest confidence intervals that account for potential misspecification. Simulations ...


A Statistical Analysis Of Economic Perceptions In The 2015 United Kingdom General Election, Amarvir Singh-Bal Mr. 2019 Durham University

A Statistical Analysis Of Economic Perceptions In The 2015 United Kingdom General Election, Amarvir Singh-Bal Mr.

Undergraduate Economic Review

This paper characterises the vote which took place in the United Kingdom's (U.K.) 2015 General Election as an ‘accountability instrument.’ In doing so, the research interrogates which sections of the electorate hold the incumbent government more accountable for economic outcomes between the 2010 and 2015 U.K. General Elections. The Rational Choice Theory and the Michigan Model are used in this study to present two interlinked, and yet distinct, hypotheses – that less politically informed and non-partisan voters are more likely to hold the government accountable for economic performances; compared to the politically informed and partisan voters within the ...


A Fishy Problem: Effects Of Atlantic Salmon Farming In The Pacific Ocean, Madeleine A. Griffith 2019 Fordham University

A Fishy Problem: Effects Of Atlantic Salmon Farming In The Pacific Ocean, Madeleine A. Griffith

Student Theses 2015-Present

In this report, I explore the historical, climatological, economic, and ethical issues created by the contemporary industrial salmon farming practices off Pacific coast of the United States and Canada. Chapter 1 utilizes a variety of sources from Stephen Hume’s A Stain upon the Sea to Miller’s Living in the Environment, to examine the integral part salmon plays in both freshwater and marine ecosystems, the ecosystem services salmon contribute in wild and farmed settings, and the trends in salmon consumption around the world. Chapter 2 examines the historically relevant role salmon held among indigenous societies and how that role ...


What’S In Your Wallet (And What Should The Law Do About It?), Natasha Sarin 2019 University of Pennsylvania Law School

What’S In Your Wallet (And What Should The Law Do About It?), Natasha Sarin

Faculty Scholarship at Penn Law

In traditional markets, firms can charge prices that are significantly elevated relative to their costs only if there is a market failure. However, this is not true in a two-sided market (like Amazon, Uber, and Mastercard), where firms often subsidize one side of the market and generate revenue from the other. This means consideration of one side of the market in isolation is problematic. The Court embraced this view in Ohio v. American Express, requiring that anticompetitive harm on one side of a two-sided market be weighed against benefits on the other side.

Legal scholars denounce this decision, which, practically ...


1st Place Research Paper: Countering The Current: The Function Of Cinematic Waves In Communist Vs. Capitalist Societies, Maddie Gwinn 2019 Chapman University

1st Place Research Paper: Countering The Current: The Function Of Cinematic Waves In Communist Vs. Capitalist Societies, Maddie Gwinn

Kevin and Tam Ross Undergraduate Research Prize

"A case study of the Czechoslovak New Wave and New Hollywood compares the functioning of cinematic movements under Communist and Capitalist societies. The period of the 1960s-70s in which these movements take place is emblematic of the shift from modernist to postmodernist structuring of society, which will be analyzed through the framework of Frederic Jameson, Alain Badiou, and Jean Baudrillard."


Does Family Income Determine A Children Future Educational Attainment Level?, Diaisha T. Richards 2019 State University of New York College at Buffalo - Buffalo State College

Does Family Income Determine A Children Future Educational Attainment Level?, Diaisha T. Richards

Applied Economics Theses

Family income and education have been a major concern in a variety of researches, and as a topic in society. These two components are a major concern because they are known to be key elements in determining future success for an individual. Various studies investigated the significance, correlations and impacts these two factors have on one another. It is common for the amount of family income obtained to determine how much education one will receive in the future. This study focuses on testing the hypothesis that family income determines how much education a child will receive in the future. By ...


Mixed Bayesian Implementation In General Environments, Takashi KUNIMOTO 2019 Singapore Management University

Mixed Bayesian Implementation In General Environments, Takashi Kunimoto

Research Collection School Of Economics

A social choice rule is said to be mixed Bayesian implementable if one can design a mechanism (or institution) in which the set of all mixed Bayesian Nash equilibrium outcomes coincides with that specified by the rule. The objective of this paper is to generalize the results of mixed Bayesian implementation. By means of example, I first assess the implication of common priors in Bayesian implementation. Second, I identify a mild condition that fills the gap between the necessity and sufficiency for mixed Bayesian implementation in general environments including non-economic ones. Third, I establish some new results to unify the ...


Wild Bootstrap For Fuzzy Regression Discontinuity Designs: Obtaining Robust Bias-Corrected Confidence Intervals, Yang He, Otávio Bartalotti 2019 Freddie Mac

Wild Bootstrap For Fuzzy Regression Discontinuity Designs: Obtaining Robust Bias-Corrected Confidence Intervals, Yang He, Otávio Bartalotti

Otávio Bartalotti

This paper develops a novel wild bootstrap procedure to construct robust bias- corrected valid confidence intervals (CIs) for fuzzy regression discontinuity designs, providing an intuitive alternative to existing analytical methods. The CIs generated by this procedure are valid under conditions similar to the standard analytical procedures used in the empirical literature. Simulations provide evidence that this new method is at least as accurate as the analytical corrections when applied to a variety of data generating processes featuring heteroskedasticity, endogeneity and clustering. Finally, we demonstrate its empirical relevance by revisiting Angrist and Lavy (1999) analysis of class size on student outcomes.


Notes On The Gridlab-D Household Equivalent Thermal Parameter Model, Leigh Tesfatsion, Swathi Battula 2019 Iowa State University

Notes On The Gridlab-D Household Equivalent Thermal Parameter Model, Leigh Tesfatsion, Swathi Battula

Economics Working Papers

GridLAB-D (GLD) is an agent-based platform, developed by researchers at Pacific Northwest National Laboratory, that permits users to accurately simulate the state dynamics of power distribution systems at time scales ranging from sub-seconds to years. The purpose of this study is to present, in careful comprehensive form, a complete analytical state-space control representation for a version of the GLD Household Equivalent Thermal Parameter Model as support documentation for model users. This model is a physically-based implementation of a household with multiple price-responsive and conventional appliances whose thermal dynamics are determined over successive days by resident appliance usage and external weather ...


A Way To Resolve Intergenerational Conflict Over The Environment Under The Pareto Criterion Using Green Bonds, Torben M. Andersen, Joydeep Bhattacharya, Pan Liu 2019 University of Aarhus

A Way To Resolve Intergenerational Conflict Over The Environment Under The Pareto Criterion Using Green Bonds, Torben M. Andersen, Joydeep Bhattacharya, Pan Liu

Joydeep Bhattacharya

Any policy designed to combat climate change will likely create intergenerational winners and losers because the associated costs appear up-front while the benefits come downstream. In such cases, cost benefit analysis seeks potential Pareto-improvements in the Kaldor–Hicks sense, the hypothetical potential for the winners to compensate the losers. Of course, once the policy is indeed implemented and has unleashed distortions and general-equilibrium effects, such potential improvements may not lead to actual improvements. We ask, which policies, once implemented, would pass the Pareto test that no generation subsequent to policy action be made worse off than before. We study a ...


The Role Of Income Inequality As A Predictor Of Per Capita Gross Domestic Product, Daniel Friedberg 2019 University of Lynchburg

The Role Of Income Inequality As A Predictor Of Per Capita Gross Domestic Product, Daniel Friedberg

Student Scholar Showcase

The role of income inequality in relation to gross domestic product is of great importance in modern time. Income inequality is a pressing phenomenon in the fields of economics, politics, and sociology, while Gross Domestic Product is the benchmark statistic in measuring the health of any economy. But how well does income inequality serve as a predictor for the level of Purchasing Power Parity (PPP) GDP per capita within a nation? This cross-sectional study determines that the GINI Index has no significant statistical relationship with PPP GDP per capita level. While income inequality is a major economic variable that contributes ...


Do Economic Inequalities Affect Long-Run Cooperation & Prosperity?, Gabriele Camera, Cary Deck, David Porter 2019 Chapman University

Do Economic Inequalities Affect Long-Run Cooperation & Prosperity?, Gabriele Camera, Cary Deck, David Porter

ESI Working Papers

We explore if fairness and inequality motivations affect cooperation in indefinitely repeated games. Each round, we randomly divided experimental participants into donor-recipient pairs. Donors could make a gift to recipients, and ex-ante earnings are highest when all donors give. Roles were randomly reassigned every period, which induced inequality in ex-post earnings. Theoretically, income-maximizing players do not have to condition on this inequality because it is payoff-irrelevant. Empirically, payoff-irrelevant inequality affected participants’ ability to coordinate on efficient play: donors conditioned gifts on their own past roles and, with inequalities made visible, discriminated against those who were better off.


1st Place Contest Entry: Countering The Current: The Function Of Cinematic Waves In Communist Vs. Capitalist Societies, Maddie Gwinn 2019 Chapman University

1st Place Contest Entry: Countering The Current: The Function Of Cinematic Waves In Communist Vs. Capitalist Societies, Maddie Gwinn

Kevin and Tam Ross Undergraduate Research Prize

This is Maddie Gwinn's submission for the 2019 Kevin and Tam Ross Undergraduate Research Prize, which won first place. It contains her essay on using library resources, a three-page sample of her research project on how the Czech New Wave and New Hollywood cinema are defined by their agency in preserving and prescribing cultural meaning across their societies while being bound to their economic systems, and her works cited list.

Maddie is a senior at Chapman University, majoring in Film Production. Her faculty mentor is Dr. Carmichael Peters.


Reconsidering Rational Expectations And The Aggregation Of Diverse Information In Laboratory Security Markets, Brice Corgnet, Cary Deck, Mark DeSantis, Kyle Hampton, Erik O. Kimbrough 2019 Emlyon Business School

Reconsidering Rational Expectations And The Aggregation Of Diverse Information In Laboratory Security Markets, Brice Corgnet, Cary Deck, Mark Desantis, Kyle Hampton, Erik O. Kimbrough

ESI Working Papers

The ability of markets to aggregate diverse information is a cornerstone of economics and finance, and empirical evidence for such aggregation has been demonstrated in previous laboratory experiments. Most notably Plott and Sunder (1988) find clear support for the rational expectations hypothesis in their Series B and C markets. However, recent studies have called into question the robustness of these findings. In this paper, we report the result of a direct replication of the key information aggregation results presented in Plott and Sunder. We do not find the same strong evidence in support of rational expectations that Plott and Sunder ...


Random Mechanism Design On Multidimensional Domains, Shurojit CHATTERJI, Huaxia ZENG 2019 Singapore Management University

Random Mechanism Design On Multidimensional Domains, Shurojit Chatterji, Huaxia Zeng

Research Collection School Of Economics

We study random mechanism design in an environment where the set of alternatives has a Cartesian product structure. We first show that all generalized random dictatorships are strategy-proof on a minimally rich domain if and only if the domain is a top-separable domain. We next generalize the notion of connectedness (Monjardet, 2009) to establish a particular class of top-separable domains: connected domains, and show that in the class of minimally rich and connected domains, the multidimensional single-peakedness restriction is necessary and sufficient for the design of a flexible random social choice function that is unanimous and strategy-proof. Such a flexible ...


The Power Of The Visible Hand, Jacqueline S. Kotkiewicz 2019 Gettysburg College

The Power Of The Visible Hand, Jacqueline S. Kotkiewicz

Student Publications

This paper is an analysis of state capitalism as a vehicle for change in the global economic system. Specifically, it looks at how state capitalism can be seen as an emerging threat to the Bretton Woods system, as well as how it is becoming an increasingly popular model of development. From national champions, to the Belt and Road initiative, to a rising presence in emerging market economies, the state capitalism model is increasing in influence. Due to this rise in power of countries that practice state capitalism, the global structure of power can potentially be challenged, thus also altering the ...


The Political Economy Of Foreign Aid And Growth: Theory And Evidence, Sultan Mehmood, Avner Seror 2019 University of Paris

The Political Economy Of Foreign Aid And Growth: Theory And Evidence, Sultan Mehmood, Avner Seror

ESI Working Papers

In this paper, we demonstrate that even when foreign aid is used to fund patronage, it may still have a positive - and significant - effect on economic growth in developing countries. First, we present a theory that formalizes the effect of aid on economic growth and patronage. Next, we provide evidence from Pakistan consistent with the predictions of the model that foreign aid increases economic growth, despite being used for patronage. The identification strategy we propose allows us to provide causal evidence for the predictions of the model.


Designing Call Auction Institutions To Eliminate Price Bubbles: Is English Dutch The Best?, Cary Deck, Maroš Servátka, Steven Tucker 2019 Chapman University

Designing Call Auction Institutions To Eliminate Price Bubbles: Is English Dutch The Best?, Cary Deck, Maroš Servátka, Steven Tucker

ESI Working Papers

The bubble and burst pattern in asset market experiments is among the most replicable results in experimental economics. Numerous studies have searched for means to reduce this mispricing. Using controlled laboratory experiments, we compare mispricing in standard double auction markets to prices in two clock auctions. The double Dutch auction, shown to be more efficient than the double auction in commodity market experiments, does not eliminate bubbles. However, the English Dutch auction does yield prices reflective of underlying fundamentals and succeeds in taming bubbles even with inexperienced traders in the common declining fundamental value environment.


Thorstein Veblen And The Vested Interests, Working Paper No. 3, Lauren Sweger-Hollingsworth 2019 Portland State University

Thorstein Veblen And The Vested Interests, Working Paper No. 3, Lauren Sweger-Hollingsworth

Working Papers in Economics

This inquiry seeks to establish the importance of "vested interests" as introduced and relied upon within Thorstein Veblen’s system of reasoning. Veblen considers vested interests from two different perspectives in his 1919 book The Vested Interests and the Common Man. First, Veblen considers the relationships between vested interests and what he terms “the business enterprise”. Veblen takes a historical view, relating vested interests to lingering laws and customs of an old era that continue to be applied in modern times. In addition, Veblen considers vested interests and "the divine right of nations", which he connects to the historical institution ...


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