infonet-economy

This paper investigates the effct of domestic market size on innovation activities across different durable good industries in the Chinese manufacturing sector. We address the endogeneity of market size by an IV strategy, based on a measure of potential market size, which is driven only by changes in the Chinese income distribution. This measure is exogenous to changes in prices and…

We analyze social mobility of decennial citizenry cohorts of Zurich born between 1780 and 1870. We categorize individuals according to their occupations and use different measures to show the level, change, and components of intergenerational mobility. Mobility was imperfect and weakly decreasing over time. Both level and change are driven by intergenerational persistence of…

We exploit Italian law DPR 81/2009, which determines class composition, as an instrument to identify the causal effect of grouping students of different grades into a single class (multigrading) on children cognitive achievement. This article focuses on 7-year-old students—those at the beginning of their formal education. Results suggest that attendance in multigrade classes versus…

Laboratory experiments provide insights into the drivers of cheating behaviour, but it is unclear to what extent cheating in the lab generalizes to the field. We conducted an experiment with middle and high school students to test whether a common laboratory measure of cheating predicts three types of school misconduct: (i) disruptiveness in class, (ii) homework non-completion, and (…

Many studies that aim to detect model-free and model-based influences on behavior employ two-stage behavioral tasks of the type pioneered by Daw and colleagues in 2011. Such studies commonly modify existing two-stage decision paradigms in order to better address a given hypothesis, which is an important means of scientific progress. It is, however, critical to fully appreciate the…

My dissertation consists of three chapters, each of which focuses on a different area of research in asset pricing. The first chapter's focal point is the measurement of the premium for jump risks in index option markets. The second chapter is devoted to non- parametric measurement of pricing kernel dispersion. The third chapter contributes to the literature on latent state variable…

Certain estimation problems involving the covariance matrix in large dimensions are considered. Due to the breakdown of finite-dimensional asymptotic theory when the dimension is not negligible with respect to the sample size, it is necessary to resort to an alternative framework known as large-dimensional asymptotics. Recently, an estimator of the eigenvalues of the population…

These days, it is common practice to base inference about the coefficients in a hetoskedastic linear model on the ordinary least squares estimator in conjunction with using heteroskedasticity consistent standard errors. Even when the true form of heteroskedasticity is unknown, heteroskedasticity consistent standard errors can also used to base valid inference on a weighted least…

This paper provides evidence of a novel facet of peer effects by showing how peer personality affects educational achievement. We exploit random assignment of students to university sections and find that students perform better in the presence of more persistent peers and more risk-averse peers. In particular, low-persistence students benefit from highly-persistent peers without…