infonet-economy

Recruiters infer personal traits from job applicants' resumés and use these inferences in evaluating job applicants' employability. No research to date, however, has determined if resumé reviewers' inferences of applicants' personality drawn solely from resumé biographical data are valid. In the present study, resumé reviewers (N=52) examined one of two applicant...

We show how employee stock options can be valued under the new reporting standards IFRS 2 and FASB 123 (revised) for share-based payments. Both standards require companies to expense employee stock options at fair value. We propose a new valuation model, referred to as Enhanced American model, that complies with the new standards and produces fair values often lower than those...

This paper investigates whether the increase in assets flowing into the hedge fund industry diminishes returns and, in particular, whether larger hedge funds underperform smaller hedge funds, as is often conjectured, owing to limited capacity in certain hedge fund strategies. The impact of fund sizes is analysed with respect to fund returns, standard deviations, Sharpe ratios and...

Non-maturing assets and liabilities (NoMALs) are those positions in a bank's balance that have no contractual maturity such as traditional savings deposits. For the calculation of transfer prices and the quantification of interest rate risk, a fix maturity profile must be assigned to a NoMAL position. Usually a replicating portfolio of fixed-income instruments with constant...

This paper measures and decomposes the differences in earnings distributions between public sector and private sector employees in Germany for the years 1984-2000. Two decomposition methods are used: Oaxaca decomposition using quantile regression and the decomposition proposed by Machado and Mata (2002). Both indicate that the public sector wage premium is highest at the lower end of...

After presenting casual evidence of the difference between economists and the rest of the population, I review the survey and experimental evidence on this topic during the last 20 years. I then ask whether these results are applicable to real world situations. To consider this, examples of referenda results in Switzerland are presented where the citizens decided against...

Over the last twenty years, many researchers have attempted to explain the determinants of wage inequality. I propose a flexible, intuitive and semiparametric estimator of distribution functions in the presence of covariates. The conditional wage distribution is estimated by quantile regressions. Then, the conditional distribution is integrated over the range of the covariates to...