All Outputs (604)

Monetary policy and the role of inventory investment (2017)
Journal Article
Rubio, M., & Schuh, S. (in press). Monetary policy and the role of inventory investment. Applied Economics Letters, 24(21), https://doi.org/10.1080/13504851.2017.1363855

In this paper, we develop a dynamic stochastic general equilibrium model (DSGE) with sticky prices and inventory investment to explore the relationship between inventories and monetary policy. We use the traditional inventory literature as a basis to... Read More about Monetary policy and the role of inventory investment.

Trade, Firm Selection and Innovation: The Competition Channel (2017)
Journal Article
Impullitti, G., & Licandro, O. (2018). Trade, Firm Selection and Innovation: The Competition Channel. Economic Journal, 128(608), 189-229. https://doi.org/10.1111/ecoj.12466

We study the welfare gains from trade in an economy with heterogeneous firms, variable markups and endogenous growth. Variable markups arise from oligopolistic competition, and cost-reducing innovation is the engine of long-run growth. Trade liberali... Read More about Trade, Firm Selection and Innovation: The Competition Channel.

Inflation Expectations, Learning, and Supermarket Prices: Evidence from Survey Experiments (2017)
Journal Article
Cavallo, A., Cruces, G., & Perez-Truglia, R. (2017). Inflation Expectations, Learning, and Supermarket Prices: Evidence from Survey Experiments. American Economic Journal: Macroeconomics, 9(3), 1-35. https://doi.org/10.1257/mac.20150147

Information frictions play a central role in the formation of household inflation expectations, but there is no consensus about their origins. We address this question with novel evidence from survey experiments. We document two main findings. First,... Read More about Inflation Expectations, Learning, and Supermarket Prices: Evidence from Survey Experiments.

Calendar mechanisms (2017)
Journal Article
Hinnosaar, T. (2017). Calendar mechanisms. Games and Economic Behavior, 104, 252-270. https://doi.org/10.1016/j.geb.2017.04.004

I study the dynamic mechanism design problem of a monopolist selling a fixed number of service slots to randomly arriving, short-lived buyers with heterogeneous values. The fully optimal mechanism is a non-standard auction in which bidders' payoffs a... Read More about Calendar mechanisms.

The value of vulnerability: the transformative capacity of risky trust (2017)
Journal Article
Bruni, L., & Tufano, F. (in press). The value of vulnerability: the transformative capacity of risky trust. Judgment and Decision Making, 12(4),

In an experimental gift-exchange game, we explore the# transformative capacity of vulnerable trust, which we define as trusting untrustworthy players when their untrustworthiness is common knowledge between co-players. In our experiment, there are tw... Read More about The value of vulnerability: the transformative capacity of risky trust.

Trust and technology transfers (2017)
Journal Article
García-Vega, M., & Huergo, E. (2017). Trust and technology transfers. Journal of Economic Behavior and Organization, 142, 92-104. https://doi.org/10.1016/j.jebo.2017.07.029

Research and development is largely done by multinationals (MNEs) that transfer technology to their foreign subsidiaries. Trust might be an important determinant of the governance of technology transfers because trust can reduce the dependence of the... Read More about Trust and technology transfers.

Testing for instability in covariance structures (2017)
Journal Article
Kao, C., Trapani, L., & Urga, G. (in press). Testing for instability in covariance structures. Bernoulli, 24(1), https://doi.org/10.3150/16-BEJ894

We propose a test for the stability over time of the covariance matrix of multivariate time series. The analysis is extended to the eigensystem to ascertain changes due to instability in the eigenvalues and/or eigenvectors. Using strong Invariance Pr... Read More about Testing for instability in covariance structures.

Partisan Interactions: Evidence from a Field Experiment in the United States (2017)
Journal Article
Perez-Truglia, R., & Cruces, G. (2017). Partisan Interactions: Evidence from a Field Experiment in the United States. Journal of Political Economy, 125(4), 1208-1243. https://doi.org/10.1086/692711

We conducted a field experiment to study social influences on partisan political participation. We sent letters to 92,000 contributors during the 2012 presidential election campaign. We randomized features of the letters and measured the effects of t... Read More about Partisan Interactions: Evidence from a Field Experiment in the United States.

Complicity without connection or communication (2017)
Journal Article
Barr, A., & Michailidou, G. (2017). Complicity without connection or communication. Journal of Economic Behavior and Organization, 142, https://doi.org/10.1016/j.jebo.2017.07.013

We use a novel laboratory experiment involving a die rolling task embedded within a coordination game to investigate whether complicity can emerge when decision-making is simultaneous, the potential accomplices are strangers and neither communication... Read More about Complicity without connection or communication.

Growth, Employment, and Poverty in Latin America (2017)
Book
Cruces, G., Fields, G. S., Jaume, D., & Viollaz, M. (2017). Growth, Employment, and Poverty in Latin America. Oxford University Press (OUP)

Team incentives and leadership (2017)
Journal Article
Drouvelis, M., Nosenzo, D., & Sefton, M. (in press). Team incentives and leadership. Journal of Economic Psychology, 62, https://doi.org/10.1016/j.joep.2017.07.002

We study, experimentally, how two alternative incentive mechanisms affect team performance and how a team chooses between alternative mechanisms. We study a group incentive mechanism (team output is shared equally among team members) and a hierarchic... Read More about Team incentives and leadership.

The effect of voluntary participation on cooperation (2017)
Journal Article
Nosenzo, D., & Tufano, F. (2017). The effect of voluntary participation on cooperation. Journal of Economic Behavior and Organization, 142, https://doi.org/10.1016/j.jebo.2017.07.009

We study the effects of voluntary participation on cooperation in collective action problems. Voluntary participation may foster cooperation through a mechanism of assortative selection of interaction partners based on false consensus bias, or throug... Read More about The effect of voluntary participation on cooperation.

The role of information search and its influence on risk preferences (2017)
Journal Article
Kopsacheilis, O. (in press). The role of information search and its influence on risk preferences. Theory and Decision, https://doi.org/10.1007/s11238-017-9623-y

According to the ‘Description–Experience gap’ (DE gap), when people are provided with the descriptions of risky prospects they make choices as if they overweight the probability of rare events; but when making decisions from experience after explorin... Read More about The role of information search and its influence on risk preferences.

Conditional cooperation and betrayal aversion (2017)
Journal Article
Cubitt, R., Gaechter, S., & Quercia, S. (2017). Conditional cooperation and betrayal aversion. Journal of Economic Behavior and Organization, 141, https://doi.org/10.1016/j.jebo.2017.06.013

We investigate whether there is an association between conditional cooperation and betrayal aversion, two phenomena that we conjecture share common psychological characteristics despite having been studied largely separately in the previous literatur... Read More about Conditional cooperation and betrayal aversion.

A Randomized Sequential Procedure to Determine the Number of Factors (2017)
Journal Article
Trapani, L. (2018). A Randomized Sequential Procedure to Determine the Number of Factors. Journal of the American Statistical Association, 113(523), 1341-1349. https://doi.org/10.1080/01621459.2017.1328359

© 2018, © 2018 American Statistical Association. This article proposes a procedure to estimate the number of common factors k in a static approximate factor model. The building block of the analysis is the fact that the first k eigenvalues of the cov... Read More about A Randomized Sequential Procedure to Determine the Number of Factors.

Monetary and macroprudential policies under fixed and variable interest rates (2017)
Journal Article
Rubio, M. (in press). Monetary and macroprudential policies under fixed and variable interest rates. Macroeconomic Dynamics, https://doi.org/10.1017/S136510051700013X

In this paper, I analyze the ability of monetary policy to stabilize both the macroeconomy and financial markets under two different scenarios: fixed and variable-rate mortgages. I develop and solve a New Keynesian dynamic stochastic general equilibr... Read More about Monetary and macroprudential policies under fixed and variable interest rates.

Belief formation in a signaling game without common prior: an experiment (2017)
Journal Article
Possajennikov, A. (2018). Belief formation in a signaling game without common prior: an experiment. Theory and Decision, 84(3), 483-505. https://doi.org/10.1007/s11238-017-9614-z

Using belief elicitation, the paper investigates the process of belief formation and evolution in a signaling game in which a common prior is not induced. Both prior and posterior beliefs of Receivers about Senders' types are elicited, as well as bel... Read More about Belief formation in a signaling game without common prior: an experiment.

Communication, leadership and coordination failure (2017)
Journal Article
Dong, L., Montero, M., & Possajennikov, A. (2018). Communication, leadership and coordination failure. Theory and Decision, 84(4), https://doi.org/10.1007/s11238-017-9617-9

We investigate the limits of communication and leadership in avoiding coordination failure in minimum effort games. Our environment is challenging, with low benefits of coordination relative to the effort cost. We consider two leader types: cheap-tal... Read More about Communication, leadership and coordination failure.

Clustered housing cycles (2017)
Journal Article
Hernandez-Murillo, R., Owyang, M. T., & Rubio, M. (2017). Clustered housing cycles. Regional Science and Urban Economics, 66, https://doi.org/10.1016/j.regsciurbeco.2017.06.003

Using a panel of U.S. city-level building permits data, we estimate a Markov-switching model of housing cycles that allows cities to systematically deviate from the national housing cycle. These deviations occur for clusters of cities that experience... Read More about Clustered housing cycles.

Adoption incentives and environmental policy timing under asymmetric information and strategic firm behaviour (2017)
Journal Article
D'Amato, A., & Dijkstra, B. (in press). Adoption incentives and environmental policy timing under asymmetric information and strategic firm behaviour. Environmental Economics and Policy Studies, https://doi.org/10.1007/s10018-017-0187-4

We consider the incentives of a single firm to invest in a cleaner technology under emission quotas and emission taxation. We assume asymmetric information about the firm's cost of employing the new technology. Policy is set either before the firm in... Read More about Adoption incentives and environmental policy timing under asymmetric information and strategic firm behaviour.