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Browsing by Subject "D8"
Now showing items 1-6 of 6
Title:Good Luck or Good Policy? An expectational theory of macro volatility switches
Author(s):GABALLO, GaetanoDate:2011-01-01Type of Publication:Working PaperSeries/Report no.:EUI MWPAbstract:In an otherwise unique-equilibrium model, agents are segmented into a few informational islands
according to the signal they receive about others' expectations. Even if agents perfectly observe
fundamentals, rational-exuberance ...
Title:A Test of Narrow Framing and Its Origin
Author(s):GUISO, LuigiDate:2009Type of Publication:Working PaperSeries/Report no.:EUI ECOAbstract:I provide a test of narrow framing to explain why individuals turn down small positive expected value lotteries. Participants in a large survey have been asked whether they would accept a small lottery of winning 180 euros ...
Title:Illiquidity and Under-Valuation of Firms
Author(s):GALE, Douglas; GOTTARDI, PieroDate:2009Type of Publication:Working PaperSeries/Report no.:EUI ECOAbstract:We study a competitive model in which market incompleteness implies that debt-financed firms may default in some states of nature and default may lead to the sale of the firms’ assets at fire sale prices when markets are ...
Title:Error Cascades in Observational Learning: An Experiment on the Chinos Game
Author(s):FERI, Francesco; MELÉNDEZ-JIMÉNEZ, Miguel A.; PONTI, Giovanni; VEGA-REDONDO, FernandoDate:2008Type of Publication:Working PaperSeries/Report no.:EUI ECOAbstract:The paper reports an experimental study based on a variant of the popular
Chinos game, which is used as a simple but paradigmatic instance of
observational learning. There are three players, arranged in sequence, each
of ...
Title:Risk Aversion, Wealth, and Background Risk
Author(s):GUISO, Luigi; PAIELLA, MonicaDate:2007Type of Publication:Working PaperSeries/Report no.:EUI ECOAbstract:We use household survey data to construct a direct measure of absolute risk aversion based on the maximum price a consumer is willing to pay for a risky security. We relate this measure to consumers.endowments and attributes ...
Title:Prudent Monetary Policy and Cautious Prediction of the Output Gap
Author(s):VAN DER PLOEG, FrederickDate:2007Type of Publication:Working PaperSeries/Report no.:EUI ECOAbstract:ABSTRACT
Using the results of risk-adjusted linear-quadratic-Gaussian optimal control with perfect and imperfect observation of the economy, we obtain prudent Taylor rules for monetary policies and also allow for imperfect ...