infonet-economy

We examine the daily activity and performance of a large panel of individual investors in Sweden's Premium Pension System. We find that active investors earn higher returns and risk-adjusted returns than inactive investors. A performance decomposition analysis reveals that most of the outperformance of active investors is the result of these investors successfully timing mutual…

The objective of providing vocational training for the unemployed is to increase their chances of re-employment and human capital accumulation. In comparison to mandatory course assignment by case workers, the awarding of vouchers increases recipients’ freedom to choose between different courses and makes non-redemption a possibility. In addition, vouchers may introduce market…

This paper critically evaluates the contention that the implementation of the Trans-Pacific Partnership would adversely affect the centrality of the World Trade Organization. Not only are many Asian nations members of the WTO, but some undertook major reforms to join. Contrary to much existing literature, it is argued here that governments in the Asia-Pacific region should not be…

Beim Kauf von Wohneigentum gilt allerdings auch in Zeiten tiefer Zinsen vor allem diese Regel: Drum prüfe, wer sich ewig bindet.

This paper examines the predictive power of five linear hedonic pricing models for the residential market with varying levels of complexity in their spatial and temporal structures. Unlike similar studies, we extend the out-of-sample forecast evaluation to one-day-ahead predictions with a rolling estimation window, which is a reasonable setting for many practical applications. We…

We propose a general theoretical model of decision‐rights allocation and choice, formulated in the context of a dynamic psychological game. Decision rights are valued not only instrumentally, i.e. according to the expected utility associated with the achieved outcomes, but also intrinsically, i.e. according to the procedure by which outcomes are achieved. As such procedural…

In this paper, we quantify the effects of the Earned Income Tax Credit (EITC) from a macroeconomic perspective. We analyze jointly the labor supply and saving responses to changes in tax credit generosity and their aggregate and distributional implications. Our results show that the EITC raises labor force participation, provides insurance to working poor households but also…