infonet-economy

This article presents the first detailed analysis of the intra-day characteristics of idiosyncratic stock price crashes. The analysis focuses on the impact of large crashes in single stocks on their intra-day returns and liquidity in the US market. Furthermore, optimal intra-daily behavior during crashes is studied. Crashes are found to happen rather quickly, usually during a time...

In this paper we deal with two questions, (1) what are the origins of the current financial crisis, and (2) what did economists contribute, or why did economists fail to provide a convincing answer for the origins of the crisis, and possible solutions to overcome it? The economics profession apparently was unaware of the looming worldwide financial and economic crisis, and...

This paper develops a theoretical foundation to describe and explain impediments to organizational learning (OL). Based on the expanded 4I model (Crossan et al. 1999. Academy of Management Review, 24, 522-537), which was further developed by Lawrence et al. (2005. Academy of Management Review, 30, 180-191), different learning barriers are categorized and discussed with regard to...

In comparing the impact of corporate taxation and social insurance on foreign direct investment (FDI) and unemployment, the paper derives four main results: (i) the optimal size of the welfare state depends on the degree of risk-aversion, the unemployment rate and the excess burden of labor taxes. Unemployment partly reflects the country's exposure to globalization; (ii)...

It has been shown in past research that unemployment has a large negative impact on subjective well-being of individuals. In this paper, I explore whether and to what extent people with more social capital are sheltered from the harmful effects of unemployment. Using data from the German Socio-Economic Panel 1984–2004, I find that social capital is an important predictor of well-...

Systematic differences in decision making between genders have been discovered in both competitive and pro-social environments. These contexts, however, have been previously studied in isolation while in naturally occurring settings pro-social and competitive pressures often overlap in economically meaningful ways. Here we report data from an experiment involving German...

This paper presents a simple conceptual framework intended for describing individuals'nsubjective evaluations of occupational wage inequality and their demand for redistribution. Most importantly, the framework explicitly allows for the distinction between individuals'nperceptions and their normative beliefs. I illustrate the framework using Swiss survey data from the...

This paper derives the welfare optimal size and intensity of job search assistance programs in a general equilibrium model where the labor market is affected by search frictions. Both instruments have a priori ambiguous fiscal implications: their direct employment stimulating effects broaden the base of the labor income tax and increase revenues, while also incurring direct costs. At...