Saturday, 4 November 2017

Notes on club model and terrorism (suicide attacks)

Psychological research indicates that suicide attackers are neither mentally disturbed nor motivated primarily by theology (Merari 2004, Kruglanski 2002, Hassan 2001).

Religious radicals will be active when government provision of public good is weak and when nonmilitia market opportunities are poor
The club model implies that subsidies to militias can be dramatically increase not only militia activity but also the intensity of prohibitions
A government which seeks to reduce militia activity and increase attrition from militias could:
Block transfers to clubs operating militias
Improve alternative provision of local public goods accessible to both members and non members
Reduce smuggling rents and other rents that clubs operating militias can aspire to capture
Improve outside options

References:
Becker, G.S. (1968). Crime and punishment: an economic approach. Journal of Political Economy 76(2), 169-217. March.
Berman, E., Laitin, D.D. (2008). Religion, terrorism and public goods: testing the club model. National Bureau of Economic Research WP#13725. January.
Hassan, N. (2001). An arsenal of believers: talking to the ‘human bombs’. New Yorker, November 19.
Kruglanski, A. (2002). Inside the terrorist mind. National Academy of Sciences presentation, April.
Pape, R.A. (2003). The strategic logic of suicide terrorism. American Political Review 97. 
Pape, R.A. (2005) Dying to Wind. Ra Dom House, New York.
Merari, A. (2004). Suicide terrorism in the context of the Israeli-Palestinian conflict. National Institute of Justice Suicide Terrorism Conference, October 25-26, Washington, DC.

Saturday, 22 July 2017

Notes on imperfect information

Endogenous Persistence in an estimated DSGE Model Under Imperfect Information 
Levine, P., Pearlman, J., Perendia, G., Yang, B 
June 2012 
The Economic Journal, 122: 1287-1312 
  
Dynamic Stochastic General Equilibrium (DSGE) 
  
Two New Keynesian models: within the conventional rational expectations framework but relaxes the extreme perfect information assumption for the private sector; the second behavioral model encompasses the first and allows a proportion of agents to form expectations in an adaptive fashion 
  
(not finished) 

Saturday, 15 July 2017

Notes on financial market regulation

Financial market regulation and reforms in emerging markets

Eswar Prasad; Masahiro Kawai, 1947-

Tokyo : Asian Development Bank Institute ; Washington, D.C. : Brookings Institution Press  c2011

Saturday, 1 July 2017

Notes on internet finance and Bitcoins

Bitcoins: peer-to-peer digital money system, artificial scarcity, privacy, private signature

Sunday, 30 April 2017

Notes on sheepskin effects

Amin, V. (2011). Returns to Education: Evidence from UK Twins: Comment. The American Economic Review, 101(4), 1629-1635.
Belman, D., & Heywood, J. (1991). Sheepskin effects in the returns to education - an examination of women and minorities. The review of economics and statistics, lxxiii(4), 720-720.
Bilkic, N., Bilkic, N., Gries, T., & Pilichowski, M. (2012). Stay in school or start working? — The human capital investment decision under uncertainty and irreversibility. Labour Economics, 19(5), 706-717.
Carneiro, P., Heckman, J., & Vytlacil, E. (2011). Estimating Marginal Returns to Education. The American Economic Review, 101(6), 2754-2781.
Crespo, A., & Reis, M. (2009). Sheepskin effects and the relationship between earnings and education: analyzing their evolution over time in Brazil. Revista Brasileira de Economia, 63(3), 209-232.
Frazis, H. (2002). Human capital, signaling, and the pattern of returns to education. Oxford Economic Papers, 54(2), 298-320.
Harmon, C., Oosterbeek, H., & Walker, I. (2003). The Returns to Education: Microeconomics. Journal of economic surveys, 17(2), 115-156.
Huntington Klein, N. (2015). Subjective and projected returns to education. Journal of economic behavior & organization, 117, 10-25.
Istvan, K. (2014). THE SHEEPSKIN EFFECT IN THE HUNGARIAN LABOUR MARKET 2010-2012: ANALYSIS OF DATA FROM THE HUNGARIAN GRADUATE TRACKING SYSTEM. Analele Universităţii din Oradea. Ştiinţe economice, 23(1), 492-499.
Liu, S., Buka, S., Kubzansky, L., Kawachi, I., Gilman, S., & Loucks, E. (2013). Sheepskin effects of education in the 10-year Framingham risk of coronary heart diseas. Social science & medicine, 80, 31.
McGuinness, S. (2003). Graduate overeducation as a sheepskin effect: evidence from Northern Ireland. Applied economics, 35(5), 597-608.
Mincer, J. (1958). Investment in Human Capital and Personal Income Distribution. Journal of political economy, 66(4), 281-302.
Pons, E., & Blanco, J. (2005). Sheepskin Effects in the Spanish Labour Market: A Public–Private Sector Analysis. Education Economics, 13(3), 331-347.
Shabbir, T. (2013). Sheepskin Effects of Investment in Schooling: Do They Signal Family Background? Case of Pakistan. Pakistan Journal of Commerce and Social Sciences, 7(1), 43-57.
Shabbir, T., & Ashraf, J. (2011). Interpreting Sheepskin Effects of Investment in Schooling. Pakistan Journal of Commerce and Social Sciences, 5(2), 202-215.
Silles, M. (2008). Sheepskin effects in the returns to education. Applied economics letters, 15(3), 217-219.
Trostel, P., & Walker, I. (2004). Sheepskin effects in work behaviour. Applied economics, 36(17), 1959-1966.

Saturday, 22 April 2017

Notes on "Stay in school or start working? — The human capital investment decision under uncertainty and irreversibility" (Bilkic, N. ; Gries, T. ; Pilichowski, M.)

Stay in school or start working? — The human capital investment decision under uncertainty and irreversibility 
Bilkic, N. ; Gries, T. ; Pilichowski, M. 
Labour Economics, October 2012, Vol.19(5), pp.706-717 [Peer Reviewed Journal]

Saturday, 15 April 2017

Notes on “Toward a cognitive game theory" (by Vlaev, I; Chater, N)

Toward a cognitive game theory 
Vlaev, I; Chater, N 
BEHAV BRAIN SCI , 26 (2) 178 - 179. (2003) 
CAMBRIDGE UNIV PRESS 2003-04


Saturday, 8 April 2017

Notes on "Homo deus : a brief history of tomorrow“ (by Yuval N. Harari)

Homo deus : a brief history of tomorrow (Hisá¹­oryah shel ha-maḥar.English ) 
translated by the author. Yuval N. Harari, author. 
London : Harvill Secker  2016

Saturday, 1 April 2017

Notes on "Risk sharing in private information models with asset accumulation: explaining the excess smoothness of consumption" (by Attanasio, OP; Pavoni, N)

Risk sharing in private information models with asset accumulation: explaining the excess smoothness of consumption
Attanasio, OP; Pavoni, N 
Econometrica , 79 (4) 1027 - 1068. (2011) 
WILEY-BLACKWELL 2011-07


  • the relationship between consumption and income variability in a class of private information models with asset accumulation and uses this characterization to derive some of their empirical implications
  • The complete insurance hypothesis is soundly rejected by the data
  • (not finished)

Saturday, 25 March 2017

Notes on "Credit market freedom and cost efficiency in US state banking" (by Chortareas, Georgios ; Kapetanios, George ; Ventouri, Alexia)

Credit market freedom and cost efficiency in US state banking 
Chortareas, Georgios ; Kapetanios, George ; Ventouri, Alexia 
Journal of Empirical Finance, June 2016, Vol.37, pp.173-185 [Peer Reviewed Journal]

1987-2012
cost efficiency scoring
banks operating in states that enjoy a higher degree of economic freedom are more cost efficient
Greater independence in financial and banking markets from government controls can result in higher bank efficiency

Saturday, 18 March 2017

Notes on "Capital market liberalization and development / edited by José Antonio Ocampo and Joseph E. Stiglitz." (by Joseph E Stiglitz; José Antonio Ocampo)

Capital market liberalization and development / edited by José Antonio Ocampo and Joseph E. Stiglitz. 
Joseph E Stiglitz; José Antonio Ocampo 
Oxford : Oxford University Press  2008

Saturday, 11 March 2017

Notes on "Explaining the Gender Wealth Gap" (Ruel, Erin ; Hauser, Robert)

Explaining the Gender Wealth Gap 
Ruel, Erin; Hauser, Robert 
Demography, 2013, Vol.50(4), pp.1155-1176 [Peer Reviewed Journal]

Human-capital formation increased the gap between never-married men and women.
a lack of power as an explanation for the gender wealth gap for married groups

Saturday, 4 March 2017

Notes on “The influence of contextual reward statistics on risk preference" (by Rigoli, F; Rutledge, RB; Dayan, P; Dolan, RJ)

The influence of contextual reward statistics on risk preference 
Rigoli, F; Rutledge, RB; Dayan, P; Dolan, RJ 
Neuroimage , 128 pp. 74-84. (2016) 
2016-03

Context dramatically affects value-based choice

ventral tegmental area/substantia nigra VTA/SN
ventral striatum VST
reward prediction error RPE

Previous observations have shown that the degree of behavioural loss aversion is connected with the individual strength of VST activation for gains compared to losses

Substantial evidence implicates the anterior insula in representing stimulus salience as activity in this region can increase for both reward and punishment

"In sum, our findings show that choice behaviour adapts to the temporal contextual reward distribution and that VTA/SN response is linked with this adaptation process. This is in line with evidence that human preferences are often inconsistent across situations, but at the same time suggests such inconsistencies might be adaptive to environmental demands. This raises an intriguing possibility that syndromes characterized by dysfunctional decision-making, such as drug abuse and mood and anxiety disorders, might be linked to impairments in adapting choice strategies to context."


Saturday, 18 February 2017

Notes on "Oil Monopoly and the Climate" (by Hassler, John; Krusell, Per; Olovsson, Conny)

Oil Monopoly and the Climate

Hassler, John ; Krusell, Per ; Olovsson, Conny

American Economic Review, 2010, Vol.100(2), pp.460-464 [Peer Reviewed Journal]

Saturday, 11 February 2017

Notes on "The liberty of the moderns: Market freedom and democracy within the EU" (Bellamy, RP)

The liberty of the moderns: Market freedom and democracy within the EU 
Bellamy, RP 
Global Constitutionalism , 1 (1) 141 - 172. (2012) 
Cambridge University Press 2012-03

though contemporary representative democracies are liberal-democratic, with the ancient liberty of direct collective political participation transformed by the modern liberties of freedom of choice, the exercise of autonomous judgement about how to lead one’s life, and the separation of public and private, their practices are shaped by cultural bonds

Saturday, 4 February 2017

Notes on "Choice Complexity and Market Competition" (by Spiegler, R)

Choice Complexity and Market Competition "
Spiegler, R 
Annual Review of Economics , 8 (2016) 2016-10

Choice complexity can be captured by an incomplete comparability relation over the (labels of) available market alternatives
highly non-linear price plans
increase the competitiveness of the market,  firms tend to intensify their equilibrium attempts to increase complexity


Saturday, 28 January 2017

Notes on "Capital market access and corporate loan structure" (Khang, K. ; King, T. D.)

Capital market access and corporate loan structure

Khang, K. ; King, T. D.

Applied Economics, 27 October 2014, p.1-24 [Peer Reviewed Journal]

Routledge


  • to examine whether the level of access to external capital markets influences the structure of private debt contracts or corporate loans
  • provides evidence that access influences loan structure in ways consistent with having greater or fewer financing alternatives as well as theories on information asymmetry, agency and monitoring
  • provide a comprehensive examination of loan characteristics across access categories
  • the hypotheses regarding the relation between access and loan structure
  • borrower access to public financial markets influences firm behaviour
  • access influences the number of facilities in a loan package
  • Access also influences lender structure. Less access means less scrutiny by the financial markets

Saturday, 21 January 2017

Notes on "Money and Asset Liquidity in Frictional Capital Markets" (Cui, W; Radde, S)

Money and Asset Liquidity in Frictional Capital Markets 
Cui, W; Radde, S 
American Economic Review , 106 (5) pp. 496-502. (2016) 2016-05

The model: the household's decision period, the production period, the investment period, the consumption period
"by affecting asset liquidity, participation decisions in the financial market can, thus, have a strong impact on firms'financing constraints, capital accumulation, and output.


Saturday, 14 January 2017

Notes on "Relativistic financial decisions: Context effects on retirement saving and investment risk preferences" (Vlaev, I; Chater, N; Stewart, N)

Relativistic financial decisions: Context effects on retirement saving and investment risk preferences 
Vlaev, I; Chater, N; Stewart, N 
JUDGM DECIS MAK , 2 (5) 292 - 311. (2007) 
SOC JUDGMENT & DECISION MAKING 2007-10

the effects the choice set on financial decision making related to retirement savings and risky investment
(not finished)

Saturday, 7 January 2017

Notes on "Output Spillovers from Fiscal Policy" (Auerbach, Alan J ; Gorodnichenko, Yuriy)

Output Spillovers from Fiscal Policy

Auerbach, Alan J ; Gorodnichenko, Yuriy

American Economic Review, 2013, Vol.103(3), pp.141-146 [Peer Reviewed Journal]

spill over into other countries, effect depends on the state of the economies
stimulus in economic downturns