infonet-economy

We study the investment of criminal organizations in the legal economy. We focus on Italy, a country historically plagued by a conspicuous presence of mafia-type organizations. By using the exogenous credit contraction imposed by the 2007 financial crisis we highlight how the consequences for newly established enterprises have been less severe in areas with organized crime. Although…

We conduct a standardized survey on risk preferences in 53 countries worldwide and estimate cumulative prospect theory parameters from the data. The parameter estimates show that significant differences on the cross-country level are to some extent robust and related to economic and cultural differences. In particular, a closer look on probability weighting underlines gender…

Are Islamic banks inherently more stable than conventional banks? We address this question by applying a survival analysis based on the Cox proportional hazard model to a comprehensive sample of 421 banks in 20 Middle and Far Eastern countries from 1995 to 2010. By comparing the failure risk for both bank types, we find that Islamic banks have a significantly lower risk of failure…

Aversive emotions are likely to be a key source of irrational human decision-making but still little is known about the underlying neural circuitry. Here, we show that aversive emotions distort trust decisions and cause significant changes in the associated neural circuitry. They reduce trust and suppress trust-specific activity in left temporoparietal junction (TPJ). In addition,…

Adaptation facilitates neural representation of a wide range of diverse inputs, including reward values. Adaptive value coding typically relies on contextual information either obtained from the environment or retrieved from and maintained in memory. However, it is unknown whether having to retrieve and maintain context information modulates the brain’s capacity for value adaptation…

This work studies the ultrasensitivity of multisite binding processes where ligand molecules can bind to several binding sites. It considers more particularly recent models involving complex chemical reactions in allosteric phosphorylation processes and for transcription factors and nucleosomes competing for binding on DNA. New statistics-based…

Abrahamsen, Yngve; Abberger, Klaus; Chatagny, Florian; Dibiasi, Andreas; Eckert, Florian; Eichenberger, Livia; Funk, Anne Kathrin; Graff, Michael; Hälg, Florian; Iselin, David; Mikosch, Heiner; Neuwirth, Stefan; Sandqvist, Anna Pauliina; Rathke, Alexander; Sarferaz, Samad; Siegenthaler, Michael; Simmons-Süer, Banu; Stücker, Anne; Studer, Dominik; Sturm, Jan-Egbert

The urgency of estimating the impact of climate risks on the financial system is increasingly recognized among scholars and practitioners. By adopting a network approach to financial dependencies, we look at how climate policy risk might propagate through the financial system. We develop a network-based climate stress-test methodology and apply it to large Euro Area banks in a ‘green…