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Competitive Escalation and Interventions

Competitive escalation occurs frequently in managerial environments, when decisions create sunk costs and decision makers compete under time pressure. In a series of experiments using a minimal dollar auction paradigm, we test interventions to prevent competitive escalation. Without any intervention, most people, including experienced managers, escalate and lose money by bidding more than the price ...

Age Differences in Intertemporal Choice: U-Shaped Associations in a Probability Sample of German Households

To describe adult age differences in intertemporal choice, we analyzed data from 1,491 participants who completed an incentivized monetary intertemporal discounting choice task involving different conditions (e.g., time delay of 12 months vs. 1 month). Respondents completed a number of other survey measures including behavioral measures of cognitive ability and self-reports concerning health, financial ...

Bekanntmachung: Regelung zur Archivierung von Daten und Analysefiles quantitativer Studien

Monetary Policy and Defaults in the United States

This paper uses a structural VAR model to study the effect of monetary policy on the delinquency rate of business loans and consumer credit. The VAR is identified using, jointly, several external instruments that reflect different approaches from the literature. Delinquency rates, defined as the rate of loans with overdue repayments relative to total loans, are found to decrease in response to an exogenous ...

Calculating Joint Confidence Bands for Impulse Response Functions Using Highest Density Regions

This paper proposes a new nonparametric method of constructing joint confidence bands for impulse response functions of vector autoregressive models. The estimation uncertainty is captured by means of bootstrapping, and the highest density region (HDR) approach is used to construct the bands. A Monte Carlo comparison of the HDR bands with existing alternatives shows that the former are competitive ...

The Reciprocal Relationship between Material Factors and Health in the Life Course: Evidence from SHARE and ELSA

The widely established health differences between people with greater economic resources and those with fewer resources can be attributed to both social causation (material factors affecting health) and health selection (health affecting material wealth). Each of these pathways may have different intensities at different ages, because the sensitivity of health to a lack of material wealth and the degree ...

Deindustrialisation and the Polarisation of Household Incomes: The Example of Urban Agglomerations in Germany

The tertiarisation, or perhaps more accurately, the deindustrialisation of the economy has left deep scars on cities. It is evident not only in the industrial wastelands and empty factory buildings, but also in the income and social structures of cities. Industrialisation, collective wage setting, and the welfare state led to a stark reduction in income differences over the course of the 20th century. ...

China's Emissions Trading Takes Steps Towards Big Ambitions

China recently announced its national emissions trading scheme, advancing market-based approaches to cutting greenhouse gas emissions. Its evolution over coming years will determine whether it becomes an effective part of China’s portfolio of climate policies.

Do Private Utilities Outperform Local Government-Owned Utilities? Evidence from German Retail Electricity

Against the background of remunicipalisation trends in European public service sectors, this paper estimates firm-level productivity for German electricity retailers and tests whether the ownership type has a significant impact on productivity. We specify a production function for the retail sector with labour and external services as main inputs, which is estimated using a control function approach. ...

Choosing between Different Time-Varying Volatility Models für Structural Vector Autoregressive Analysis

The performance of information criteria and tests for residual heteroscedasticity for choosing between different models for time‐varying volatility in the context of structural vector autoregressive analysis is investigated. Although it can be difficult to find the true volatility model with the selection criteria, using them is recommended because they can reduce the mean squared error of impulse ...