12 results
Search Results
2. Land Quality
- Author
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Bravo Center Working Paper Series, David Nathan Weil, Adam Storeygard, and J. Vernon Henderson
- Subjects
History ,Polymers and Plastics ,Business and International Management ,Industrial and Manufacturing Engineering - Published
- 2022
3. Make-up Strategies with Finite Planning Horizons but Forward-Looking Asset Prices
- Author
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Stephane Dupraz, Herve Le Bihan, Julien Matheron, and Banco de España Research Paper Submitter
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History ,Polymers and Plastics ,Business and International Management ,Industrial and Manufacturing Engineering - Published
- 2022
4. Does Banking Competition Really Increase Credit for All? The Effect of Bank Branching Deregulation on Small Business Credit
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FDIC Working Paper Series and John Lynch
- Subjects
History ,Polymers and Plastics ,Business and International Management ,Industrial and Manufacturing Engineering - Published
- 2022
5. Bank Concentration and Monetary Policy Pass-Through
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FDIC Working Paper Series and Isabel Gödl-Hanisch
- Subjects
History ,Polymers and Plastics ,Business and International Management ,Industrial and Manufacturing Engineering - Published
- 2022
6. Information frictions in inflation expectations among five types of economic agents
- Author
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GATE Working Paper Series, Camille Cornand, Paul Hubert, Groupe d'analyse et de théorie économique (GATE Lyon Saint-Étienne), Centre National de la Recherche Scientifique (CNRS)-Université de Lyon-Université Jean Monnet [Saint-Étienne] (UJM)-Université Claude Bernard Lyon 1 (UCBL), Université de Lyon-Université Lumière - Lyon 2 (UL2)-École normale supérieure - Lyon (ENS Lyon), Observatoire français des conjonctures économiques (OFCE), Sciences Po (Sciences Po), Groupe d'Analyse et de Théorie Economique Lyon - Saint-Etienne (GATE Lyon Saint-Étienne), École normale supérieure de Lyon (ENS de Lyon)-Université Lumière - Lyon 2 (UL2)-Université Claude Bernard Lyon 1 (UCBL), Université de Lyon-Université de Lyon-Université Jean Monnet - Saint-Étienne (UJM)-Centre National de la Recherche Scientifique (CNRS), École normale supérieure - Lyon (ENS Lyon)-Université Lumière - Lyon 2 (UL2)-Université Claude Bernard Lyon 1 (UCBL), Université de Lyon-Université de Lyon-Université Jean Monnet [Saint-Étienne] (UJM)-Centre National de la Recherche Scientifique (CNRS), Observatoire français des conjonctures économiques (Sciences Po) (OFCE), and École normale supérieure de Lyon (ENS de Lyon)-Université Lumière - Lyon 2 (UL2)-Université Jean Monnet - Saint-Étienne (UJM)-Centre National de la Recherche Scientifique (CNRS)
- Subjects
History ,JEL: E - Macroeconomics and Monetary Economics/E.E7 - Macro-Based Behavioral Economics ,[QFIN]Quantitative Finance [q-fin] ,Polymers and Plastics ,inflation expectations ,experimental forecasts ,JEL: E - Macroeconomics and Monetary Economics/E.E3 - Prices, Business Fluctuations, and Cycles ,survey forecasts ,[SHS.ECO]Humanities and Social Sciences/Economics and Finance ,forecast revisions ,Industrial and Manufacturing Engineering ,disagreement ,central bank forecasts ,JEL: E - Macroeconomics and Monetary Economics/E.E5 - Monetary Policy, Central Banking, and the Supply of Money and Credit ,Business and International Management ,information frictions - Abstract
International audience; We compare disagreement in expectations and the frequency of forecast revisions among five categories of agents: households, firms, professional forecasters, policymakers and participants to laboratory experiments. We provide evidence of disagreement among all categories of agents. There is however a strong heterogeneity across categories: while policymakers and professional forecasters exhibit low disagreement, firms and households show strong disagreement. This translates into a heterogeneous frequency of forecast revision across categories of agents, with policymakers revising more frequently their forecasts than firms and professional forecasters. Households last revise less frequently. We are also able to explore the external validity of experimental expectations.
- Published
- 2021
7. Bank bonus pay as a risk sharing contract
- Author
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Harald Hau, Matthias Efing, Patrick Kampkötter, Jean-Charles Rochet, University of Zurich, Hau, Harald, Ecole des Hautes Etudes Commerciales (HEC Paris), Center for Economic Studies and Ifo for Economic Research (CESifo), CESifo Group Munich, Groupe de recherche en économie mathématique et quantitative (GREMAQ), Centre National de la Recherche Scientifique (CNRS)-École des hautes études en sciences sociales (EHESS)-Institut National de la Recherche Agronomique (INRA)-Université Toulouse 1 Capitole (UT1), Université Fédérale Toulouse Midi-Pyrénées-Université Fédérale Toulouse Midi-Pyrénées, and HEC Paris Research Paper
- Subjects
Economics and Econometrics ,History ,Polymers and Plastics ,Control (management) ,Bank compensation ,2002 Economics and Econometrics ,Operating leverage ,Industrial and Manufacturing Engineering ,JEL: G - Financial Economics/G.G2 - Financial Institutions and Services/G.G2.G21 - Banks • Depository Institutions • Micro Finance Institutions • Mortgages ,Shareholder ,Accounting ,0502 economics and business ,ddc:330 ,Risk sharing ,External financing ,operating leverage ,Business and International Management ,050207 economics ,Finance ,1402 Accounting ,050208 finance ,banker compensation ,Earnings ,business.industry ,05 social sciences ,10003 Department of Banking and Finance ,330 Economics ,Incentive ,Payroll ,JEL: G - Financial Economics/G.G2 - Financial Institutions and Services/G.G2.G20 - General ,2003 Finance ,8. Economic growth ,G20 ,[SHS.GESTION]Humanities and Social Sciences/Business administration ,G21 ,business ,risk sharing ,bank risk ,D22 ,bonus pay - Abstract
https://ssrn.com/abstract=3202916; We show that banker bonuses cannot be understood exclusively as incentive contracts, but also incorporate a significant risk sharing dimension between bank shareholders and bank employees. This contrasts with the conventional view whereby diversified shareholders fully insure risk averse employees. However, financial frictions imply that shareholder value is concave in a bank's cash reserves---making shareholders effectively risk averse. The optimal contract between shareholders and employees then involves some degree of risk sharing. Using extensive payroll data on 1.26 million bank employee years in the Austrian, German, and Swiss banking sectors, we show that the structure of bonus pay within and across banks is compatible with an economically significant risk sharing motive, but difficult to rationalize based on incentive theories of bonus pay only.
- Published
- 2023
8. Digital Privacy
- Author
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Itay Fainmesser, Ruslan Momot, Andrea Galeotti, University of Essex, Ecole des Hautes Etudes Commerciales (HEC Paris), and HEC Research Paper Series
- Subjects
History ,transaction-driven businesses ,WME ,Polymers and Plastics ,Information security ,Strategy and Management ,online platforms ,advertisement-driven businesses ,Management Science and Operations Research ,KVC ,data policy design ,Industrial and Manufacturing Engineering ,welfare ,Internet services ,[SHS.GESTION]Humanities and Social Sciences/Business administration ,data-driven businesses ,Business and International Management ,Data mining - Abstract
We study the incentives of a digital business to collect and protect users’ data. The users’ data the business collects improve the service it provides to consumers, but they may also be accessed, at a cost, by strategic third parties in a way that harms users, imposing endogenous users’ privacy costs. We characterize how the revenue model of the business shapes its optimal data strategy: collection and protection of users’ data. A business with a more data-driven revenue model will collect more users’ data and provide more data protection than a similar business that is more usage driven. Consequently, if users have small direct benefit from data collection, then more usage-driven businesses generate larger consumer surplus than their more data-driven counterparts (the reverse holds if users have large direct benefit from data collection). Relative to the socially desired data strategy, the business may over- or undercollect users’ data and may over- or underprotect it. Restoring efficiency requires a two-pronged regulatory policy, covering both data collection and data protection; one such policy combines a minimal data protection requirement with a tax proportional to the amount of collected data. We finally show that existing regulation in the United States, which focuses only on data protection, may even harm consumer surplus and overall welfare. This paper was accepted by Itai Ashlagi, revenue management and market analytics.
- Published
- 2022
9. Explainable Performance
- Author
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Hué, Sullivan, Hurlin, Christophe, Pérignon, Christophe, Saurin, Sébastien, Aix-Marseille Sciences Economiques (AMSE), École des hautes études en sciences sociales (EHESS)-Aix Marseille Université (AMU)-École Centrale de Marseille (ECM)-Centre National de la Recherche Scientifique (CNRS), Université d'Orléans (UO), Ecole des Hautes Etudes Commerciales (HEC Paris), and HEC Paris Research Paper Series
- Subjects
History ,Polymers and Plastics ,Machine learning ,Performance metric ,[SHS.GESTION]Humanities and Social Sciences/Business administration ,Shapley value ,JEL: C - Mathematical and Quantitative Methods/C.C4 - Econometric and Statistical Methods: Special Topics ,Business and International Management ,Explainability ,JEL: C - Mathematical and Quantitative Methods/C.C5 - Econometric Modeling/C.C5.C52 - Model Evaluation, Validation, and Selection ,Industrial and Manufacturing Engineering - Abstract
We introduce the XPER (eXplainable PERformance) methodology to measure the specific contribution of the input features to the predictive or economic performance of a model. Our methodology offers several advantages. First, it is both model-agnostic and performance metric-agnostic. Second, XPER is theoretically founded as it is based on Shapley values. Third, the interpretation of the benchmark, which is inherent in any Shapley value decomposition, is meaningful in our context. Fourth, XPER is not plagued by model specification error, as it does not require re-estimating the model. Fifth, it can be implemented either at the model level or at the individual level. In an application based on auto loans, we find that performance can be explained by a surprisingly small number of features, XPER decompositions are rather stable across metrics, yet some feature contributions switch sign across metrics. Our analysis also shows that explaining model forecasts and model performance are two distinct tasks.
- Published
- 2022
10. Investor heterogeneity and negative skewness in stock returns: Evidence from institutional investors
- Author
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Ramzi Benkraiem, Stéphane Goutte, Samir Saadi, Hui Zhu, Steven Zhu, Audencia Business School, SOUtenabilité et RésilienCE (SOURCE), Université de Versailles Saint-Quentin-en-Yvelines (UVSQ)-Institut de Recherche pour le Développement (IRD [France-Nord]), Paris School of Business (PSB), HESAM Université - Communauté d'universités et d'établissements Hautes écoles Sorbonne Arts et métiers université (HESAM), Université d'Ottawa [Ontario] (uOttawa), University of Ontario Institute of Technology, UOIT, Cape Breton University, CBU, University of Waterloo, UW, and ☆ The authors would like to thank Jonathan A. Batten (the Editor) and two anonymous reviewers for constructive and helpful comments. The paper has also benefited from comments and suggestions from Jason Allen, Alexander Barinov, Gregory Bauer, Imed Chkir, Lamia Chourou, Alexander David, Kose John, Yan Luo, Gordon Sick, Gloria Tian, Ligang Zhong, and seminar participants at The University of New Orleans, The University of Waterloo, The Cape Breton University, The Bank of Canada, The University of Calgary, The University of Ottawa, The Ontario Tech University, The Multinational Finance Society Annual Meetings and The Edwards Symposium on Financial Markets & Institutions.
- Subjects
Economics and Econometrics ,History ,Polymers and Plastics ,Investors’ investment horizons ,[SDV]Life Sciences [q-bio] ,Business and International Management ,Crash risk ,Skewness ,Finance ,Industrial and Manufacturing Engineering ,Institutional Investors - Abstract
International audience; We examine the relation between the probability of future stock price crash and investors’ investment horizons. Using negative skewness as a proxy for firm-specific crash risk, we document a positive association between institutional ownership and stock price crash risk. The relation is, however, driven by short-term institutional investors, while the presence of long-term institutional investors has a negative effect on stock price crash risk. In addition, we find that the presence of short-term institutional investors induces corporate risk-taking behavior. Our results are robust to alternative model specifications, endogeneity concerns, and different measures of crash risk and proxies of investors’ horizons.
- Published
- 2022
11. Eliciting Multiple Prior Beliefs
- Author
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Mohammed Abdellaoui, Philippe Colo, Brian Hill, HEC Paris - Recherche - Hors Laboratoire, Ecole des Hautes Etudes Commerciales (HEC Paris), Centre National de la Recherche Scientifique (CNRS), Groupement de Recherche et d'Etudes en Gestion à HEC (GREGH), Ecole des Hautes Etudes Commerciales (HEC Paris)-Centre National de la Recherche Scientifique (CNRS), University of Duisburg-Essen, and HEC Paris Research Paper Series
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History ,Polymers and Plastics ,Computer science ,media_common.quotation_subject ,Industrial and Manufacturing Engineering ,0502 economics and business ,Prior probability ,050207 economics ,Business and International Management ,media_common ,Event (probability theory) ,050208 finance ,Cumulative distribution function ,05 social sciences ,Probabilistic logic ,[SHS.PHIL]Humanities and Social Sciences/Philosophy ,Multiple Priors ,JEL: D - Microeconomics/D.D8 - Information, Knowledge, and Uncertainty/D.D8.D81 - Criteria for Decision-Making under Risk and Uncertainty ,Ambiguity ,Imprecise probability ,Belief Measurement ,[SHS.ECO]Humanities and Social Sciences/Economics and Finance ,Preference ,α-maxmin EU ,Identification (information) ,[SHS.GESTION]Humanities and Social Sciences/Business administration ,Imprecise Probability ,Cognitive psychology - Abstract
Despite the increasing importance of multiple priors in various domains of economics and the significant theoretical advances concerning them, choice-based incentive-compatible multiple-prior elicitation largely remains an open problem. This paper develops a solution, comprising a preference-based identification of a subject’s probability interval for an event, and two procedures for eliciting it. The method does not rely on specific assumptions about subjects’ ambiguity attitudes or probabilistic sophistication. To demonstrate its feasibility, we implement it in two incentivized experiments to elicit the multiple-prior equivalent of subjects’ cumulative distribution functions over continuous-valued sources of uncertainty. We find a predominance of non-degenerate probability intervals among subjects for all explored sources, with intervals being wider for less familiar sources. Finally, we use our method to undertake the first elicitation of the mixture coefficient in the Hurwicz α-maxmin EU model that fully controls for beliefs.
- Published
- 2021
12. Helpful or Harmful? Negative Behavior Toward Newcomers and Welfare in Online Communities
- Author
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Pethig, Florian, Hoehle, Hartmut, Hui, Kai-Lung, Lanz, Andreas, University of Mannheim, Hong Kong University of Science and Technology (HKUST), Ecole des Hautes Etudes Commerciales (HEC Paris), and HEC Paris Research Paper Series
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History ,050208 finance ,Polymers and Plastics ,05 social sciences ,community welfare ,newcomers ,nudges ,Industrial and Manufacturing Engineering ,Online communities ,0502 economics and business ,[SHS.GESTION]Humanities and Social Sciences/Business administration ,050207 economics ,Business and International Management ,natural experiment - Abstract
Newcomers are important for the survival of online communities, but their contributions often receive negative reactions and comments from established members. Online communities realize that such negativity can take a toll on newcomers and harm the creation of user-generated content. We study a novel intervention aimed at reducing hostility toward newcomers: a “newcomer nudge” that informs community members when they are interacting with a newcomer’s post and asks them to be more lenient toward its creator. Taking advantage of granular data from a large deal-sharing community and a natural experiment, we use a difference-in-differences approach and find robust evidence that the newcomer nudge induced members to write 46% more responses per day with 10% fewer negative words during the first two days after a deal was published. Our results show that the nudge-induced change in behavior toward newcomers increased newcomer retention. However, we also observe that before the nudge, newcomers’ second posts received more net votes (upvotes minus downvotes) than their first posts. After the nudge, newcomers’ subsequent posts were less popular than their first posts, which indicates that the nudge interrupted newcomers’ learning curve by suppressing helpful feedback.
- Published
- 2021
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