infonet-economy

This paper proposes a novel approach to portfolio revision. The current literature
on portfolio optimization uses a somewhat naïve approach, where portfolio weights are always completely revised after a predefined fixed period. However, one shortcoming of this procedure is that it ignores parameter uncertainty in the estimated portfolio weights, as well as the biasedness of the...

The nonparametric identification of the local average treatment effect (LATE) hinges on the satisfaction of three instrumental variable assumptions: (1) unconfounded assignment of the instrument, (2) no average direct effect of the instrument on the outcome within compliance types (exclusion restriction), and (3) weak monotonicity of the treatment in the instrument. While (1) often...

This paper develops a nonparametric methodology for treatment evaluation with multiple outcome periods under treatment endogeneity and missing outcomes. We use instrumental variables, pre-treatment characteristics, and short-term (or intermediate) outcomes to identify the average treatment effect on the outcomes of compliers (the subpopulation whose treatment reacts on the instrument...

We analyse the effectiveness of vocational training under two different assignment mechanisms. The direct assignment mechanism is characterised by the strong influence of caseworkers who can directly assign the unemployed to vocational training courses. Under the voucher assignment mechanism unemployed have more freedom to choose among different courses and training providers....

Does universal preschool constitute an effective policy tool to promote the development and integration of children from minority groups? In the light of rising cross border migration and increasing ethnic variation in many developed countries, we address this question for the children of the Roma - the largest and most disadvantaged minority in Europe. To tackle the issue of non-...

The 2005 reform of the German welfare system introduced two competing organizational models for welfare administration. In most districts, a centralized organization was established where local welfare agencies are bound to central directives. At the same time, 69 districts were allowed to opt for a decentralized organization. We evaluate the relative success of both types in terms...

We study retail deposit withdrawals from commercial banks which were
differentially exposed to distress during the 2007-2009 financial crisis. We show that the propensity of households to withdraw deposits increases with the severity of bank distress. Withdrawal risk is, however, substantially mitigated by strong bank-client relationships. Considering the most distressed bank...

Obwohl es dem Schweizer Mittelstand bessergeht denn je, fürchtet er um seine Privilegien. Neben den gefühlten Nöten gibt es aber durchaus reale - und die Politik weiss darauf keine vernünftige Antwort.

Standard sample selection models with non-randomly censored outcomes assume (i) an exclusion restriction (i.e., a variable affecting selection, but not the outcome) and (ii) additive separability of the errors in the selection process. This paper proposes tests for the joint satisfaction of these assumptions by applying the approach of Huber and Mellace (2011) (for testing instrument...