infonet-economy

We consider an economy where a finite set of agents can trade on one of two asset markets. Due to endogenous participation the differ in the liquidity they provide. Traders have idiosyncratic preferencesnfor the markets, e.g. due to differential time preferences for maturity dates of futures contracts. For a broad range of parameters we find that nontrade, trade on both markets (...

Many people contribute to public goods but stop doing so once they experience free riding.We test the hypothesis that groups whose members know that they are composed only of "likeminded" cooperators are able to maintain a higher cooperation level than the most cooperative, randomly composed groups. Our experiments confirm this hypothesis. We also predict that groups of...

We discuss regression models for ordered responses, such as ratings of bonds, schooling attainment, or measures of subjective well-being. Commonly used models in this context are the ordered logit and ordered probit regression models. They are based on an underlying latent model with single index function and constant thresholds. We argue that these approaches are overly restrictive...

Risk management and asset pricing benefit from simple functional descriptions of the distribution of real asset returns. Recently, several authors have proposed that asset returns in real stock markets are distributed according to a hyperbolic distribution. While asset returns are generated by trades over time, the natural question is: What does economic theory imply concerning...

Right-wing extremism is a serious problem in many societies. A prominent hypothesis states that unemployment plays a crucial role for the occurrence of right-wing extremist crime. In this paper we empirically test this hypothesis. We use a previously not used data set which includes all officially recorded right-wing criminal acts in Germany. These data are recorded by the German...

We ask whether offering a menu of unemployment insurance contracts is welfare improving in a heterogeneous population. We adopt a repeated moral-hazard framework as in Shavell/Weiss (1979) supplemented by unobservednheterogeneity about agents’ job opportunities. Our main theoretical contribution is an analytical characterizationnof the sets of jointly feasible entitlements that...

This paper examines the effects on national welfare and market access of two public procurement practices, discrimination and nontransparency. Both policies have become prominent in international trade negotiations, including the Doha Round of World Trade Organization (WTO) trade talks. We show that fostering either domestic competition or transparency in state contracting tends to...

On 1 January 1995, the Understanding on Rules and Procedures Governing the Settlement of Disputes (DSU) entered into force. During its first ten years, the DSU has since been applied to 324 complaints - more cases than dispute settlement under the GATT
1947 had dealt with in nearly five decades. The system is perceived, both by practitioners and in academic literature, to work...

http://www.manuel-ammann.com/pdf/PubsAmmann2005NZZ_WasHedgeFundskoennen.pdf