Pub Date : 2024-11-28DOI: 10.1016/j.econlet.2024.112086
Hyo Seok Jang , Sangjik Lee
By employing a saturated measure space for the set of agents, we take a convexification by randomization approach to prove the existence of competitive equilibria in a large economy with externalities and an infinite-dimensional commodity space without convex preferences.
{"title":"Equilibria in a large economy with externalities, non-convex preferences and an infinite-dimensional commodity space via relaxation","authors":"Hyo Seok Jang , Sangjik Lee","doi":"10.1016/j.econlet.2024.112086","DOIUrl":"10.1016/j.econlet.2024.112086","url":null,"abstract":"<div><div>By employing a saturated measure space for the set of agents, we take a convexification by randomization approach to prove the existence of competitive equilibria in a large economy with externalities and an infinite-dimensional commodity space without convex preferences.</div></div>","PeriodicalId":11468,"journal":{"name":"Economics Letters","volume":"246 ","pages":"Article 112086"},"PeriodicalIF":2.1,"publicationDate":"2024-11-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142759380","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-11-27DOI: 10.1016/j.econlet.2024.112068
Karol Flores-Szwagrzak , Rafael Treibich
In a “claims problem” (O’Neill, 1982), a group of individuals have claims on a resource but there is not enough of it to honor all of the claims. A widely studied property of distribution rules, “claims truncation invariance”, advances the existence of a maximal reasonable claim: the endowment of the resource. We examine the implications of imposing any maximal claim, no matter how large. Our conclusions establish the centrality of the “constrained equal awards rule” and its asymmetric generalizations in the class of asymmetric rationing rules (Moulin, 2000).
{"title":"How much can you claim?","authors":"Karol Flores-Szwagrzak , Rafael Treibich","doi":"10.1016/j.econlet.2024.112068","DOIUrl":"10.1016/j.econlet.2024.112068","url":null,"abstract":"<div><div>In a “claims problem” (O’Neill, 1982), a group of individuals have claims on a resource but there is not enough of it to honor all of the claims. A widely studied property of distribution rules, “claims truncation invariance”, advances the existence of a maximal reasonable claim: the endowment of the resource. We examine the implications of imposing <em>any</em> maximal claim, no matter how large. Our conclusions establish the centrality of the “constrained equal awards rule” and its asymmetric generalizations in the class of asymmetric rationing rules (Moulin, 2000).</div></div>","PeriodicalId":11468,"journal":{"name":"Economics Letters","volume":"246 ","pages":"Article 112068"},"PeriodicalIF":2.1,"publicationDate":"2024-11-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142759381","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-11-27DOI: 10.1016/j.econlet.2024.112072
Diogo de Prince , Emerson Fernandes Marçal , Pedro L. Valls Pereira
This study applies a co-explosive VAR model based on the methodologies of Nielsen (2010) and Engsted and Nielsen (2012). to estimate the determinants of Bitcoin price in the long term such as the gold price, S&P500, Google searches for Bitcoin, and the financial stress index. We explore the co-explosive dynamics between Bitcoin’s price and these factors. Using weekly data spanning from October 4, 2013, to September 24, 2021, the research uncovers a four-explosive-root relationship with Bitcoin’s price. Our primary emphasis is on the interaction between Bitcoin’s price and Google search interest. Enhanced Google search activity is correlated with an increase in Bitcoin’s price in the long term. The Bitcoin price and Google search volumes adjust to long-term deviations from their established relationship, classifying them as explosive variables. This behavior of Bitcoin’s price is consistent with existing literature that highlights its inherently explosive nature.
{"title":"Exploring co-explosive dynamics: Bitcoin price, attractiveness, and sentiment variables","authors":"Diogo de Prince , Emerson Fernandes Marçal , Pedro L. Valls Pereira","doi":"10.1016/j.econlet.2024.112072","DOIUrl":"10.1016/j.econlet.2024.112072","url":null,"abstract":"<div><div>This study applies a co-explosive VAR model based on the methodologies of Nielsen (2010) and Engsted and Nielsen (2012). to estimate the determinants of Bitcoin price in the long term such as the gold price, S&P500, Google searches for Bitcoin, and the financial stress index. We explore the co-explosive dynamics between Bitcoin’s price and these factors. Using weekly data spanning from October 4, 2013, to September 24, 2021, the research uncovers a four-explosive-root relationship with Bitcoin’s price. Our primary emphasis is on the interaction between Bitcoin’s price and Google search interest. Enhanced Google search activity is correlated with an increase in Bitcoin’s price in the long term. The Bitcoin price and Google search volumes adjust to long-term deviations from their established relationship, classifying them as explosive variables. This behavior of Bitcoin’s price is consistent with existing literature that highlights its inherently explosive nature.</div></div>","PeriodicalId":11468,"journal":{"name":"Economics Letters","volume":"246 ","pages":"Article 112072"},"PeriodicalIF":2.1,"publicationDate":"2024-11-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142744300","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-11-26DOI: 10.1016/j.econlet.2024.112078
Xiangyu Shi
In this paper, I provide the first cross-country empirical analysis to establish three stylized facts on how term limits and political risk shape the relationship between leader capability and economic outcomes, using a novel data set of national leaders’ personal and tenure characteristics and countries’ institutional features: (1) In democracies with (exogenous) term limits, the positive association between leaders’ performance and their capability is significantly less pronounced in their last term, when they do not have face further political risks; (2) In democracies with term limits, the positive association between leaders’ performance and their capability is decreasing over time on average in their entire tenure, but exhibits a jump in the term right before the last term; and (3) The above patterns are more salient in presidential democracies with binding term limits than parliamentary democracies while non-existent in non-democracies where leaders are not appointed via elections. These facts are consistent with a theory of political risk and electoral dynamics.
{"title":"Political risk dynamics, leaders’ capability, and economic performance: New evidence of national executives","authors":"Xiangyu Shi","doi":"10.1016/j.econlet.2024.112078","DOIUrl":"10.1016/j.econlet.2024.112078","url":null,"abstract":"<div><div>In this paper, I provide the first cross-country empirical analysis to establish three stylized facts on how term limits and political risk shape the relationship between leader capability and economic outcomes, using a novel data set of national leaders’ personal and tenure characteristics and countries’ institutional features: (1) In democracies with (exogenous) term limits, the positive association between leaders’ performance and their capability is significantly less pronounced in their last term, when they do not have face further political risks; (2) In democracies with term limits, the positive association between leaders’ performance and their capability is decreasing over time on average in their entire tenure, but exhibits a jump in the term right before the last term; and (3) The above patterns are more salient in presidential democracies with binding term limits than parliamentary democracies while non-existent in non-democracies where leaders are not appointed via elections. These facts are consistent with a theory of political risk and electoral dynamics.</div></div>","PeriodicalId":11468,"journal":{"name":"Economics Letters","volume":"246 ","pages":"Article 112078"},"PeriodicalIF":2.1,"publicationDate":"2024-11-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142744297","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-11-26DOI: 10.1016/j.econlet.2024.112076
Ugo Panizza
Quantitative models of sovereign debt predict that countries should default during deep recessions. However, empirical research on sovereign debt has found a surprisingly large share of “good times” defaults (i.e., defaults that happen when GDP is above trend). Existing evidence also indicates that, on average, defaults happen when output is close to potential. This paper reassesses the empirical evidence and shows that the detrending technique proposed by Hamilton (2018) yields results that are closer to the predictions of standard quantitative models of sovereign debt.
{"title":"Do countries default in bad times? The role of alternative detrending techniques","authors":"Ugo Panizza","doi":"10.1016/j.econlet.2024.112076","DOIUrl":"10.1016/j.econlet.2024.112076","url":null,"abstract":"<div><div>Quantitative models of sovereign debt predict that countries should default during deep recessions. However, empirical research on sovereign debt has found a surprisingly large share of “good times” defaults (i.e., defaults that happen when GDP is above trend). Existing evidence also indicates that, on average, defaults happen when output is close to potential. This paper reassesses the empirical evidence and shows that the detrending technique proposed by Hamilton (2018) yields results that are closer to the predictions of standard quantitative models of sovereign debt.</div></div>","PeriodicalId":11468,"journal":{"name":"Economics Letters","volume":"246 ","pages":"Article 112076"},"PeriodicalIF":2.1,"publicationDate":"2024-11-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142744296","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-11-26DOI: 10.1016/j.econlet.2024.112077
Florentine Schwark , Andreas Tryphonides
The technological advances experienced by many economies during the last decades have fundamentally reshaped production functions. How do such changes affect the transmission of sectoral supply-side shocks to the gross domestic product (Domar weights) and hence macroeconomic resilience? We show that Domar weights decrease with the elasticity of substitution if value added is relatively abundant compared to intermediate inputs in production. Empirical evidence from European sectors suggests that the elasticity of substitution has a stronger effect on resilience today than it had some decades ago, with a clear negative contribution to Germany’s resilience post 2010.
{"title":"Technical change and macroeconomic resilience to sectoral shocks","authors":"Florentine Schwark , Andreas Tryphonides","doi":"10.1016/j.econlet.2024.112077","DOIUrl":"10.1016/j.econlet.2024.112077","url":null,"abstract":"<div><div>The technological advances experienced by many economies during the last decades have fundamentally reshaped production functions. How do such changes affect the transmission of sectoral supply-side shocks to the gross domestic product (Domar weights) and hence macroeconomic resilience? We show that Domar weights decrease with the elasticity of substitution if value added is relatively abundant compared to intermediate inputs in production. Empirical evidence from European sectors suggests that the elasticity of substitution has a stronger effect on resilience today than it had some decades ago, with a clear negative contribution to Germany’s resilience post 2010.</div></div>","PeriodicalId":11468,"journal":{"name":"Economics Letters","volume":"246 ","pages":"Article 112077"},"PeriodicalIF":2.1,"publicationDate":"2024-11-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142744299","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-11-23DOI: 10.1016/j.econlet.2024.112074
Varun Yadav , Abhiman Das
In this article, we study the adoption of digital payment technologies in India over the last decade. Using a quasi-experimental design, the study assesses if the demonetization exercise of 2016 led to an enhanced adoption of digital payments. We further study the evolution of digital payment usage in the wake of the COVID-19 pandemic. The study finds insufficient evidence supporting the claim that demonetization led to an enhanced adoption of digital channels (measured by the value of transactions as a percentage of money supply). On the other hand, the lockdown in the wake of the first wave of the COVID-19 pandemic spurred the adoption of some new-age payment channels.
{"title":"Digital payments in India — How demonetization and COVID-19 shaped adoption?","authors":"Varun Yadav , Abhiman Das","doi":"10.1016/j.econlet.2024.112074","DOIUrl":"10.1016/j.econlet.2024.112074","url":null,"abstract":"<div><div>In this article, we study the adoption of digital payment technologies in India over the last decade. Using a quasi-experimental design, the study assesses if the demonetization exercise of 2016 led to an enhanced adoption of digital payments. We further study the evolution of digital payment usage in the wake of the COVID-19 pandemic. The study finds insufficient evidence supporting the claim that demonetization led to an enhanced adoption of digital channels (measured by the value of transactions as a percentage of money supply). On the other hand, the lockdown in the wake of the first wave of the COVID-19 pandemic spurred the adoption of some new-age payment channels.</div></div>","PeriodicalId":11468,"journal":{"name":"Economics Letters","volume":"246 ","pages":"Article 112074"},"PeriodicalIF":2.1,"publicationDate":"2024-11-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142744298","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-11-20DOI: 10.1016/j.econlet.2024.112070
Samuel Bowles , Wendy Carlin , Sahana Subramanyam
Using topic modeling on the corpus of papers published in seven leading economics journals since 1900, we study the evolving emphasis in research on themes relating to the state, markets, and civil society, the latter referring to families, firms as organizations, other private organizations, neighborhoods, and identity groups. We document a shift between 1900 and 1970 away from research on state-related topics towards the market, even as the economic importance of the state was growing. This was followed by a substantial movement away from market topics towards topics related to civil society. We associate the first shift with the mathematical formalization of the Marshallian paradigm. The subsequent increased attention to civil society coincided with novel research questions and empirical methods including experiments and the use of large datasets. Since the middle of the last century advances in game theory and the economics of asymmetric information also facilitated the extension of economists’ research agendas to encompass themes central to economic behavior in civil society, including other-regarding preferences and social norms as well as strategic interactions not covered by complete contracts.
{"title":"Civil society comes of age in economics: Tracking a century of research","authors":"Samuel Bowles , Wendy Carlin , Sahana Subramanyam","doi":"10.1016/j.econlet.2024.112070","DOIUrl":"10.1016/j.econlet.2024.112070","url":null,"abstract":"<div><div>Using topic modeling on the corpus of papers published in seven leading economics journals since 1900, we study the evolving emphasis in research on themes relating to the state, markets, and civil society, the latter referring to families, firms as organizations, other private organizations, neighborhoods, and identity groups. We document a shift between 1900 and 1970 away from research on state-related topics towards the market, even as the economic importance of the state was growing. This was followed by a substantial movement away from market topics towards topics related to civil society. We associate the first shift with the mathematical formalization of the Marshallian paradigm. The subsequent increased attention to civil society coincided with novel research questions and empirical methods including experiments and the use of large datasets. Since the middle of the last century advances in game theory and the economics of asymmetric information also facilitated the extension of economists’ research agendas to encompass themes central to economic behavior in civil society, including other-regarding preferences and social norms as well as strategic interactions not covered by complete contracts.</div></div>","PeriodicalId":11468,"journal":{"name":"Economics Letters","volume":"246 ","pages":"Article 112070"},"PeriodicalIF":2.1,"publicationDate":"2024-11-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142724115","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-11-20DOI: 10.1016/j.econlet.2024.112071
Mohammed Kharbach, Amine Ben Amar, Hafid Lalioui
We investigate investor behavior in a counterfactual scenario where shareholders are subject to a carbon tax, and we compare the structure and performance of the carbon-adjusted portfolio to those of the mean-variance portfolio. Results suggest that applying such a tax does not lead to significant changes in portfolio structure. The impact on performance becomes relatively noticeable only if the tax is particularly stringent. Therefore, implementing a carbon tax could be justified, as it may support decarbonization, at least partially, without significantly affecting investors’ economic outcomes.
{"title":"Carbon-adjusted portfolio selection: A counterfactual analysis","authors":"Mohammed Kharbach, Amine Ben Amar, Hafid Lalioui","doi":"10.1016/j.econlet.2024.112071","DOIUrl":"10.1016/j.econlet.2024.112071","url":null,"abstract":"<div><div>We investigate investor behavior in a counterfactual scenario where shareholders are subject to a carbon tax, and we compare the structure and performance of the carbon-adjusted portfolio to those of the mean-variance portfolio. Results suggest that applying such a tax does not lead to significant changes in portfolio structure. The impact on performance becomes relatively noticeable only if the tax is particularly stringent. Therefore, implementing a carbon tax could be justified, as it may support decarbonization, at least partially, without significantly affecting investors’ economic outcomes.</div></div>","PeriodicalId":11468,"journal":{"name":"Economics Letters","volume":"246 ","pages":"Article 112071"},"PeriodicalIF":2.1,"publicationDate":"2024-11-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142702272","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-11-20DOI: 10.1016/j.econlet.2024.112050
Peter Lihn Jørgensen , Kevin J. Lansing
We show that the fraction of non-reoptimizing firms that index prices to the inflation target, rather than lagged inflation, provides a simple measure of anchoring for short-run expected inflation in a New Keynesian model with full-information rational expectations. Higher values of the anchoring measure imply less sensitivity of rational inflation forecasts to movements in actual inflation. The approximate value of the model’s anchoring measure can be inferred from observable data generated by the model itself, as given by 1 minus the autocorrelation statistic for quarterly inflation. We show that a shift in the collective indexing behavior of firms allows the model to account for numerous features of evolving U.S. inflation behavior since 1960.
{"title":"A simple measure of anchoring for short-run expected inflation in FIRE models","authors":"Peter Lihn Jørgensen , Kevin J. Lansing","doi":"10.1016/j.econlet.2024.112050","DOIUrl":"10.1016/j.econlet.2024.112050","url":null,"abstract":"<div><div>We show that the fraction of non-reoptimizing firms that index prices to the inflation target, rather than lagged inflation, provides a simple measure of anchoring for short-run expected inflation in a New Keynesian model with full-information rational expectations. Higher values of the anchoring measure imply less sensitivity of rational inflation forecasts to movements in actual inflation. The approximate value of the model’s anchoring measure can be inferred from observable data generated by the model itself, as given by 1 minus the autocorrelation statistic for quarterly inflation. We show that a shift in the collective indexing behavior of firms allows the model to account for numerous features of evolving U.S. inflation behavior since 1960.</div></div>","PeriodicalId":11468,"journal":{"name":"Economics Letters","volume":"246 ","pages":"Article 112050"},"PeriodicalIF":2.1,"publicationDate":"2024-11-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142702274","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
扫码关注我们
求助内容：
应助结果提醒方式：
京公网安备 11010802042870号