infonet-economy

This paper introduces a new numerical option pricing method by fast recursive projections. The projection step consists in representing the payoff and the state price density with a fast discrete transform based on a simple grid sampling. The recursive step consists in transmitting coefficients of the representation from one date to the previous one by an explicit recursion formula....

People often attach a higher value to an object when they own it (i.e., as seller) compared with when they do not own it (i.e., as buyer)—a phenomenon known as the endowment effect. According to recent cognitive process accounts of the endowment effect, the effect is due to differences between sellers and buyers in information search. Whereas previous investigations have focused on...

This study report provides European management consulting firms' assessment of trends and currently prevailing business models in the industry. It depicts the different threats and opportunities that consulting firms with different business models, consulting foci, sizes, leverage ratios, international orientations, and geographical footprints face; it also reveals these firms...

We study the response of regional employment and nominal wages to trade liberalization, exploiting the natural experiment provided by the opening of Central and Eastern European markets after the fall of the Iron Curtain in 1990. Using data for Austrian municipalities, we examine differential pre- and post-1990 wage and employment growth rates between regions bordering the formerly...

Trade liberalization is often believed to benefit urbanized regions more than rural regions. We explore the effects of trade liberalization on employment and wage growth of different sized towns within a country. A multi-region model of intranational adjustment predicts that small towns have more elastic labor-force responses to trade liberalization. We examine this predictions in...

Neuroscience, like genomic science creates new ways of harming, as well as helping, people. However, this paper argues, these are unlikely fundamentally to challenge the reasons to value privacy, or our ability to protect it for the foreseeable future. Rather, the main threat to privacy comes from the difficulty of determining its nature and value. Hence, this paper looks at the...