Stockholm School of Economics

About: Stockholm School of Economics is a education organization based out in Stockholm, Sweden. It is known for research contribution in the topics: Population & Entrepreneurship. The organization has 1186 authors who have published 4891 publications receiving 285543 citations. The organization is also known as: Stockholm Business School & Handelshögskolan i Stockholm.

Stylized facts of daily return series and the hidden Markov model

Abstract: In two recent papers, Granger and Ding (1995a,b) considered long return series that are first differences of logarithmed price series or price indices. They established a set of temporal and distributional properties for such series and suggested that the returns are well characterized by the double exponential distribution. The present paper shows that a mixture of normal variables with zero mean can generate series with most of the properties Granger and Ding singled out. In that case, the temporal higher-order dependence observed in return series may be described by a hidden Markov model. Such a model is estimated for ten subseries of the well-known S&P 500 return series of about 17,000 daily observations. It reproduces the stylized facts of Granger and Ding quite well, but the parameter estimates of the model sometimes vary considerably from one subseries to the next. The implications of these results are discussed. © 1998 John Wiley & Sons, Ltd.

National accounts and environmental resources

Abstract: In the paper, optimal growth theory is used to derive the appropriate definition of the net national product concept, when there are environmental resources and environmental damage to take into account. The basic conclusions are that conventional defined NP should be corrected by deducting environmental damage and adding the value of the net change of all resources.

Are Phenomenographic Results Reliable

Abstract: This article takes up the issue of the extent to which phenomenographic results are reliable. It is argued that interjudge reliability, traditionally used within phenomeno‐graphy, is an unreliable way of establishing reliability of the results produced. First, interjudge reliability does not take into account the researcher's procedures for achieving fidelity to the individuals’ conceptions investigated. Second, and most fundamental, the use of interjudge reliability based on an objectivistic epistemology gives rise to methodological and theoretical inconsistency within phenomenography. Reliability as interpretative awareness, maintained through the phenemenological reduction, is suggested as one way of overcoming the problem of establishing reliability of phenomenographic results.

The aversion to lying

Abstract: We experimentally investigate the effect of cheap talk in a bargaining game with one-sided asymmetric information. A seller has private information about her skill and is provided an opportunity to communicate this information to a buyer through a written message. Four different treatments are compared: one without communication, one with free-form communication, and two treatments with pre-specified communication in the form of promises of varying strength. Our results suggest that individuals have an aversion towards lying about private information and that the aversion to lying increases with the size of the lie and the strength of the promise. Freely formulated messages lead to the fewest lies and the most efficient outcomes.