Showing papers in "International Economic Review in 2020"
TL;DR: In this article, the authors estimate a dynamic Roy model with accumulation of experience, risk aversion, and imperfect information about ability, and show that fostering young entrepreneurship can yield higher returns than fostering entrepreneurship later in individuals' careers.
Abstract: Most individuals do not start a business and, if they do, they start well into their thirties. I study multiple mechanisms explaining these stylized facts. Using the Panel Study of Income Dynamics, I estimate a dynamic Roy model with accumulation of experience, risk aversion, and imperfect information about ability. Risk aversion reduces entrepreneurship by up to 40% and providing full information about ability increases it by 35%. The gap in first entry ages between paid employment and entrepreneurship results mainly from entry costs and information frictions. I study counterfactual policies (subsidies and education) that target these barriers to young entrepreneurship, thereby closing the gap, and show that fostering young entrepreneurship can yield higher returns than fostering entrepreneurship later in individuals' careers because the gains from early information are larger.
37 citations
TL;DR: This article studied the role of country differences, the variation of stakes, and the framing of lotteries in higher-order risk preferences and found that the majority of choices are consistent with mixed risk aversion or mixed risk-loving behavior.
Abstract: This study measures higher‐order risk preferences and their consistency. We explore the role of country differences, the variation of stakes, and the framing of lotteries. We observe a robust dichotomous pattern of choice behavior in China, in the USA and in Germany. The majority of choices are consistent with mixed risk aversion or mixed risk‐loving behavior. We also find this pattern after a tenfold increase in the stakes. Finally, our results reveal that this pattern is strengthened if the lotteries are displayed in compound rather than reduced form. In a follow‐up study we explore potential explanations for this framing effect.
33 citations
TL;DR: A general equivalence is established between discrete choice and rational inattentive models when the information cost is a Bregman information, a class defined in this article.
Abstract: This paper establishes a general equivalence between discrete choice and rational inattention models. We show that the choice probabilities emerging from any random
utility discrete choice model can be obtained from a class of suitably generalized rational inattention models, and vice versa. Thus any discrete choice model can be given an
interpretation in terms of boundedly rational behavior. The underlying idea is that the surplus function of a discrete choice model has a convex conjugate that is a generalized
entropy (which is a suitable generalization of the Shannon entropy function). These generalized entropies are used to construct an information cost function for a generalized
rational inattention model. We denote this class of rational inattention problems as Generalized Entropic Rational Inattention (GERI) models.
32 citations
TL;DR: In this paper, the authors examined the relationship between information and price dispersion in the retail gasoline market and showed that the clearinghouse models in the spirit of Stahl (1989) generate an inverted-U relationship.
Abstract: We examine the relationship between information and price dispersion in the retail gasoline market. We first show that the clearinghouse models in the spirit of Stahl (1989) generate an inverted-U relationship between information and price dispersion. We construct a new measure of information based on precise commuter data from Austria. Regular commuters can freely sample gasoline prices on their commuting route, providing us with spatial variation in the share of informed consumers. We use detailed information on gas station level price to construct various measures of price dispersion. Our empirical estimates of the relationship are in line with the theoretical predictions.
27 citations
TL;DR: In this article, the authors develop a model for two-sided markets with consumers and producers, who interact through a platform and consider competition between two platforms that allow consumers and rms to optimize with respect to how they home, i.e., they allow both individual consumers and individual producers to multi-home or single-home depending on whether it is optimal based on their type and the pricing policies of the two platforms.
Abstract: We develop a model for two-sided markets with consumers and producers, who interact through a platform. Typical settings for the model are the market for smartphones with phone users, app producers, and smartphone operating systems; or the video game market with game players, video game producers, and video game consoles. Only consumers who purchase the platform can access content from the producers. Consumers are heterogeneous in their gains from the producer side; and producers are heterogeneous in their costs of bringing apps to the platform. We consider competition between two platforms that allows consumers and rms to optimize with respect to how they home, i.e. we allow both individual consumers and individual producers to multi-home or single-home depending on whether it is optimal based on their type and the pricing policies of the two platforms. This leads to multiple equilibrium allocations of consumers and rms | all of which are seen in existing markets. We then nd conditions under which a monopoly platform generates higher surplus than the two competing platforms.
27 citations
TL;DR: In this paper, a trabajo muestra que el deterioro de la eficiencia en the asignación de factores productivos entre empresas explica el bajo crecimiento of the PTF in Espana, mientras que the mala asignacion de recursos entrega entre sectores desempeno un papel menor.
Abstract: El PIB espanol crecio a una tasa promedio del 3,5 % anual durante el periodo 1995- 2007, muy por encima de la media del 2,2 % de la UE. Sin embargo, este crecimiento estuvo basado en la acumulacion de factores productivos, en lugar de en ganancias de productividad, dado que la productividad total de los factores (PTF) cayo a una tasa anual del 0,7 %. Utilizando datos administrativos a nivel de empresa para todos los sectores de la economia, este trabajo muestra que el deterioro de la eficiencia en la asignacion de los factores productivos entre empresas explica el bajo crecimiento de la PTF en Espana, mientras que la mala asignacion de recursos entre sectores desempeno un papel menor. Es decir, la mala asignacion de los factores productivos entre empresas del mismo sector se incremento sustancialmente en todos los sectores. En ausencia de tal deterioro, se estima que el crecimiento promedio de la PTF se habria situado en el entorno del 0,8 % por ano, en linea con el crecimiento de la frontera tecnologica. Asimismo, se observa que el empeoramiento en la asignacion de recursos fue mas severo en los sectores donde la incidencia de las regulaciones es mas importante. Por el contrario, las diferencias sectoriales en dependencia financiera, dependencia de trabajadores de alta calificacion, contenido innovador, comerciabilidad o intensidad en el uso de estructuras de capital parecen no estar relacionadas con los cambios en la eficiencia de la asignacion de recursos. De este modo, el elevado crecimiento de la produccion, junto con el aumento de la mala asignacion de recursos entre empresas, es consistente con una expansion impulsada por un auge de la demanda, en vez de por reformas estructurales.
24 citations
TL;DR: The authors studied the effects of uncertainty shocks on economic activity, focusing on inflation and showed that increased uncertainty has negative demand effects, reducing GDP and prices, and then considered standard New Keynesian models with Rotemberg-type and Calvo-type price rigidities.
Abstract: This article studies the effects of uncertainty shocks on economic activity, focusing on inflation. Using a vector autoregression, I show that increased uncertainty has negative demand effects, reducing GDP and prices. I then consider standard New Keynesian models with Rotemberg‐type and Calvo‐type price rigidities. Despite the belief that the two schemes are equivalent, I show that they generate different dynamics in response to uncertainty shocks. In the Rotemberg model, uncertainty shocks decrease output and inflation, in line with the empirical results. By contrast, in the Calvo model, uncertainty shocks decrease output but raise inflation because of firms' precautionary pricing motive.
23 citations
TL;DR: In this article, a threshold vector autoregression model (TVAR) was used to investigate the state dependence in labor market uctuations, showing that the unemployment rate, the job separation rate, and the job finding rate exhibit a larger response to productivity shocks during periods with low aggregate productivity.
Abstract: This paper documents state dependence in labor market uctuations. Using a Threshold Vector Autoregression model (TVAR), we establish that the unemployment rate, the job separation rate, and the job finding rate exhibit a larger response to productivity shocks during periods with low aggregate productivity. A Diamond-Mortensen-Pissarides model with endogenous job separation and on-the-job search replicates these empirical regularities well. We calibrate the model to match the standard deviation of the job-transition rates explained by productivity shocks in the TVAR, and show that the model explains 88 percent of the state dependence in the unemployment rate, 76 percent for the separation rate and 36 percent for the job finding rate. The key channel underpinning state dependence in both job separation and job finding rates is the interaction of the firm's reservation productivity level and the distribution of match-specifc idiosyncratic productivity. Results are robust across several variations to the baseline model.
18 citations
TL;DR: In this paper, the authors present a model that can account for the changes in the current account balance in China since the 2000s, and suggest that inadequate insurance through government programs for the elderly and the decline in family insurance due to the one-child policy led to large increases in the household saving rate.
Abstract: In this article, we present a model that can account for the changes in the current account balance in China since the 2000s. Our results suggest that inadequate insurance through government programs for the elderly and the decline in family insurance due to the one‐child policy led to large increases in the household saving rate. These increases coupled with the financial frictions preventing the household saving from being invested in domestic firms resulted in large current account surpluses until 2008. Relaxation of financial constraints, on the other hand, was responsible for the decline in the current account surplus after 2008.
16 citations
TL;DR: This paper used the English Housing Survey to estimate a selection model of property allocations to the owner-occupied and rental sectors and found that structural characteristics and unobserved quality are important for selection.
Abstract: Which housing characteristics are important for understanding homeownership rates? How are housing characteristics priced in rental and owner‐occupied markets? What can answers to these questions tell us about economic theories of homeownership? Using the English Housing Survey, we estimate a selection model of property allocations to the owner‐occupied and rental sectors. Structural characteristics and unobserved quality are important for selection. Location is not. Accounting for selection is important for rent‐to‐price ratio estimates and explains some puzzling correlations between rent‐to‐price ratios and homeownership rates. These patterns are consistent with, among others, hypotheses of rental market contracting frictions related to housing maintenance.
15 citations
TL;DR: Experimentally to what extent subjects can cooperate in a dynamic common pool game, where the stage game changes endogenously, the main finding is that it is difficult to cooperate.
Abstract: This article studies experimentally to what extent subjects can cooperate in a dynamic common pool game, where the stage game changes endogenously. Although efficiency can be supported with strategies that condition on history, the main finding is that it is difficult to cooperate. Even if the incentives to cooperate are large, modal behavior can be rationalized with equilibrium Markov strategies that do not condition on history. The popularity of Markov strategies, however, is decreasing in the incentives to cooperate. The evidence also suggests that strategic uncertainty added by facing stage games that change in time may move play away from efficiency.
TL;DR: In this article, the authors untersuchen den Zusammenhang zwischen den Merkmalen eines Betriebes and dessen Entscheidung fur bestimmte Suchwege bei der Rekrutierung neuer Mitarbeiter.
Abstract: Wir untersuchen den Zusammenhang zwischen den Merkmalen eines Betriebes und dessen Entscheidung fur bestimmte Suchwege bei der Rekrutierung neuer Mitarbeiter. Wir konstruieren ein suchtheoretisches Modell, in dem Betriebe sich fur eine oder mehrere Suchstrategien entscheiden konnen. Dabei unterscheiden wir formale Wege, die fur die Unternehmen mit Kosten verbunden sind, und einen informalen Weg, der kostenlos ist und bei dem die Betriebe uber Empfehlungen der beschaftigten Mitarbeiter suchen. In unserem Modell unterscheiden wir offene Stellen hinsichtlich ihrer Produktivitat. Die Betriebe wahlen einen bezuglich der zu erwarteten Kosten und Ertrage optimalen Suchaufwand, um potentielle Bewerber fur die offenen Stellen anzusprechen. Dabei konnen sich Arbeitsuchende gleichzeitig auf mehrere offene Stellen bewerben. Unsere Modell erlaubt eine Reihe von Vorhersagen zu Rekrutierungsstrategien der Betriebe bei der Suche nach Mitarbeitern. Diese Vorhersagen uberprufen wir mit Hilfe der IAB-Stellenerhebung, bei der Personalverantwortliche in Deutschland detailliert uber ihren letzten Fall der Suche nach Mitarbeitern berichten.Wir zeigen, dass (1) grosere Unternehmen eher in formale Suchwege investieren; dass (2) Unternehmen hoheren formalen Suchaufwand in Arbeitsmarkten mit hoher qualifzierten Arbeitskraften betreiben; dass (3) die positive Korrelation zwischen Unternehmensgrose und formaler Suchintensitat auch fur Unternehmen beobachtet werden kann, die nicht uber Mitarbeiterempfehlungen suchen; dass (4) Unternehmen, die Mitarbeiterempfehlungen als Suchkanal benutzen, weniger Aufwand auf formalen Suchwegen betreiben als Unternehmen, die nicht uber Mitarbeiterempfehlungen suchen; dass (5) grosere Unternehmen mit einer geringeren Wahrscheinlichkeit einen Bewerber uber Mitarbeiterempfehlungen einstellen als kleine Unternehmen; und schlieslich dass (6) ein hoherer Suchaufwand auf formalen Suchwegen zu einer groseren Anzahl an Bewerbungen fuhrt.
TL;DR: In this article, the authors developed a theory of money and credit as competing payment instruments and put it to work in applications, and derived closed-form solutions for money demand, and showed how to simultaneously account for the price change facts, cash-credit shares in micro data, and money interest correlations in macro data.
Abstract: We develop a theory of money and credit as competing payment instruments, then put it to work in applications. Agents use cash and credit because the former (latter) is subject to the inflation tax (transaction costs). Frictions that make the choice of payment method interesting also imply equilibrium price dispersion. We derive closed‐form solutions for money demand, and show how to simultaneously account for the price‐change facts, cash–credit shares in micro data, and money‐interest correlations in macro data. The effects of inflation on welfare, price dispersion and markups are discussed, as are nonstationary equilibria with dynamics in the price distribution.
TL;DR: In this article, a method that combines economic modeling and machine learning methods was used to combine web browsing history and demographics for both targeting advertisements and personalizing prices, and they found that personalized prices based on web browsing histories increased profits by 12.99%.
Abstract: A consumer's web‐browsing history, now readily available, may be much more useful than demographics for both targeting advertisements and personalizing prices. Using a method that combines economic modeling and machine learning methods, I find a striking difference. Personalizing prices based on web‐browsing histories increases profits by 12.99%. Using demographics alone to personalize prices raises profits by only 0.25%, suggesting the percent profit gain from personalized pricing has increased 50‐fold. I then investigate whether regulations intended to prevent price gouging increase aggregate consumer surplus. Two feasible regulations considered offer at best modest improvements.
TL;DR: In this article, the influence of information on market performance in an advance purchase setting is examined and it is shown that under monopoly, information can be detrimental both for efficiency and consumer surplus; under competition, information is doubly beneficial because it mitigates intertemporal business stealing.
Abstract: This article examines the influence of information on market performance in an advance purchase setting. Information reduces the risk that an advance purchase results in a mismatch between consumer preferences and product characteristics. However, information may also raise the number of advance purchases by increasing firms' incentive to offer advance purchase discounts. Accounting for consumers' aversion toward losses/risks turns out to be crucial as it changes our assessment of policies aiming to improve consumers' information: Under monopoly, information can be detrimental both for efficiency and consumer surplus, whereas under competition, information is doubly beneficial because it mitigates intertemporal business stealing.
TL;DR: This study provides a theoretical lens into the science of how to use science through a simple model, whereby the nature and extent of the various threats to scalability are explored in the original research program.
Abstract: Policymakers are increasingly facing the challenge of scaling empirical insights. This study provides a theoretical lens into the science of how to use science. Through a simple model, we highlight three elements of the scale‐up problem: (1) when does evidence become actionable; (2) properties of the population; and (3) properties of the situation. Until these three areas are fully understood, the threats to scalability will render any scaling exercise as particularly vulnerable. Accordingly, our work represents a call for more policy‐based evidence, whereby the nature and extent of the various threats to scalability are explored in the original research program.
TL;DR: Adding endogenous variations to the parameter controlling leverage in Gertler and Karadi's model substantially improves the fit of the model and provides diagnostics to detect parameter variations and to ascertain whether they are exogenous or endogenous.
Abstract: We study how structural parameter variations affect the decision rules and economic inference. We provide diagnostics to detect parameter variations and to ascertain whether they are exogenous or endogenous. A constant parameter model poorly approximates a time‐varying data generating process (DGP), except in a handful of relevant cases. Linear approximations do not produce time‐varying decision rules; higher‐order approximations can do this only if parameter disturbances are treated as decision rule coefficients. Structural responses are time invariant regardless of order of approximation. Adding endogenous variations to the parameter controlling leverage in Gertler and Karadi's model substantially improves the fit of the model.
TL;DR: In this article, the authors document cyclical behavior of real exchange rates in emerging and developed economies: stronger RER procyclicality coincides with larger relative volatility of consumption and more countercyclical trade balance.
Abstract: I document cyclical behavior of real exchange rates (RERs) in emerging and developed economies: stronger RER procyclicality coincides with larger relative volatility of consumption and more countercyclical trade balance. I then reevaluate the sources of fluctuations in emerging economies using an international business cycle model estimated to match the behavior of the RERs. Interest rate shocks, without any frictions, account for most of output fluctuations. This result is driven by imperfect substitution between domestic and foreign goods, which dampens the impact of trend shocks and accentuates the impact of interest rate shocks on output and consumption.
TL;DR: In this article, the authors study how insurance from progressive taxation improves the matching of workers to occupations and propose an equilibrium dynamic assignment model to illustrate how social insurance encourages mobility in the United States and Germany.
Abstract: This paper studies how insurance from progressive taxation improves the
matching of workers to occupations. We propose an equilibrium dynamic assignment
model to illustrate how social insurance encourages mobility. Workers
experiment to find their best occupational fit in a process filled with uncertainty.
Risk aversion and limited earnings insurance induce workers to remain
in unfitting occupations. We estimate the model using microdata from the
United States and Germany. Higher earnings uncertainty explains the U.S.
higher mobility rate. When workers in the United States enjoy Germany’s
higher progressivity, mobility rises. Output and welfare gains are large.
TL;DR: This paper used a directed search model with symmetric unobserved heterogeneity, in which agents learn workers' types from their labor market histories, to rationalize these findings and showed that although differences in job-finding rates increase over the course of a career, differences between job-separation rates are large right from the start.
Abstract: A long‐standing question in economics is how important unobserved differences across workers are for explaining unemployment. I revisit this topic using variation in lifetime unemployment across workers in U.S. data. A comparison of workers often unemployed with the rest shows that although differences in job‐finding rates increase over the course of a career, differences in job‐separation rates are large right from the start. I develop a directed search model with symmetric unobserved heterogeneity, in which agents learn workers' types from their labor market histories, to rationalize these findings. The model cannot match the data if unobserved heterogeneity is neglected.
TL;DR: In this paper, the authors identified the relationship of instructional leadership (IL) towards teacher development (TD) through instructional coaching (IC) among Malaysian school leaders, which is a survey method with a quantitative approach using questionnaire.
Abstract: Malaysian Education Development Plan (2013 2025) has outlined 11 shifts that focus on the development of the Malaysian education system. The 5th shift highlights the role of principals as instructional leaders who are responsible for bringing excellence to the organization through improving teachers' knowledge and skills within teaching and learning. Accordingly, this study aimed to identify the relationship of instructional leadership (IL) towards teacher development (TD) through instructional coaching (IC) among Malaysian school leaders. The study design is a survey method with a quantitative approach using questionnaire. Total of sample involved in this study are 1265 respondents consisting of principals and head teachers, Senior Curriculum Assistant, Head of Subject Field, Head of Subject Committee, and teachers. Samples were selected based on multi-stage cluster sampling method. Data were analysed using inferential statistics (Pearson correlation and multiple regressions). Pearson correlation test shows that the relationship between instructional leadership and instructional coaching towards teacher development is significant. Whereas multiple regression analysis shows that instructional leadership and instructional coaching were correlated and contributed significantly to teacher development.
TL;DR: In this paper, the authors show the relationship between the growing role of the financial sector and economic development in the context of the 4 Industrial Revolution (4IR) using linear ordering based on the standardized sums method.
Abstract: Objective: The objective of the article is to show the relationship between the growing role of the financial sector and economic development in the context of the 4 Industrial Revolution (4IR).
Research Design & Methods: The article uses linear ordering based on the standardized sums method. It allowed for the construction of a synthetic indicator of the financialisation of the economy. The values of this indicator were compared with the GDP growth rate of selected countries.
Findings: Studies have shown that, for the countries with the highest economic development level, there is no reason to say that too high level of development in the financial sector slows down their economic growth. Instead, it turned out that the development of the financial sector, which is detrimental to economic growth, occurs in countries in transition and those with an average economic development level. There the level of financialisation of the economy is lower.
Contribution & Value Added: The study was carried out on a large group of countries with different economic development levels, making it possible not only to draw general conclusions but also to address individual countries’ specificities.
TL;DR: In this paper, the authors determine the contribution of government policy and financial inclusion (FI) to the financial and non-financial performance of SMEs in South Eastern Nigeria and find that SMEs that received support from the government recorded marginal financial performance and improved nonfinancial performance.
Abstract: Objective: This study seeks to determine the contribution of government policy and Financial Inclusion (FI) to the financial and non-financial performance of SMEs in South Eastern Nigeria.
Research Design & Methods: The study adopts qualitative methodology. The interview guide was pre-tested for reliability and validity. The study data were generated from purposively selected one hundred and twenty respondents. The audio recorded interview was transcribed and subjected to thematic content analysis.
Findings: SMEs that received support from the government recorded marginal financial performance and improved non-financial performance. Also, SMEs that adopted FI strategies and devices experienced improvement in both their financial and non-financial performance. However, SMEs that combined government, friends and family supports, and FI strategies and devices recorded better improvements in their financial and non-financial performance.
Contribution & Value Added: The combination of government, friends/family supports and FI strategies and devices gives better improvement to the financial and non-financial performance of SMEs in South Eastern Nigeria. Thus, the government can reinvent its policies so as to strengthen its implementing agencies and the families of SME owners. SME owners can achieve better financial and non-financial performance by combining government entrepreneurship incentives, friends/family supports and FI strategies and devices.
TL;DR: In this article, the authors describe how the Fair Trade movement supports the achievement of the sustainable development goals (SDGs), also using A Theory of Change, to analyze the Trade Fair phenomenon in the global scale, in the V4 countries and make a comparison with selected EU countries as well as an attempt to develop recommendations for the Visegrad Group countries in terms of the fair trade development.
Abstract: Objective: The objectives of this paper are as follows: to describe how the Fair Trade movement supports the achievement of the Sustainable Development Goals (SDGs), also using A Theory of Change, to analyze the Trade Fair phenomenon in the global scale, in the V4 countries and make a comparison with selected EU countries as well as an attempt to develop recommendations for the Visegrad Group countries in terms of the Fair Trade development.
Research Design & Methods: The research methods applied in the article are: studying the literature of the subject, analysis of source texts, the descriptive method and deductive reasoning (the observational method combined with a case study).
Findings: Fair Trade development level and the sales level in the analysed countries considerably differ from other developed EU countries.
Contribution & Value Added: Therefore, it was proposed in the recommendations to use the UK benchmarks and take advantage of the economic potential of the V4 group.
TL;DR: In this article, the macroeconomic consequences of changing aggregate lending standards in residential mortgage markets, as measured by loan-to-value (LTV) ratios, using a structural vector autoregression (VAR), were investigated.
Abstract: What are the macroeconomic consequences of changing aggregate lending standards in residential mortgage markets, as measured by loan‐to‐value (LTV) ratios? Using a structural vector autoregression (VAR), we find that GDP and business investment increase following an expansionary LTV shock. Residential investment, by contrast, falls after a small initial uptick, a result that depends on the systematic reaction of monetary policy. We show that, historically, the Fed tended to respond to expansionary LTV shocks by raising the monetary policy instrument, and, as a result, mortgage rates increased and residential investment declined. House prices are affected in a similar manner.
TL;DR: In this paper, the authors show that when panel data on household demands are available, one can construct a second-order approximation to non-marginal welfare measures using only the first-stage marginal prices.
Abstract: Traditional cross-sectional estimates of hedonic price functions can recover marginal willingness to pay for characteristics, but face endogeneity problems for estimating non-marginal welfare measures. I show that when panel data on household demands are available, one can construct a second-order approximation to non-marginal welfare measures using only the first-stage marginal prices. With repeated cross sections of product prices, the measure can be set identified or, under a single-crossing restriction, point identified. Bounds also can be constructed when there are mobility costs. Finally, a variant remains valid when individual preferences shift over time.
TL;DR: In this article, the authors studied an income fluctuation problem with endogenous labor supply and showed that the agent's wealth either approaches infinity almost surely or converges to a finite level almost surely.
Abstract: In this article, I first study an income fluctuation problem with endogenous labor supply. Let β be the agent's time discount factor and R>0 be the constant gross rate of return on assets. For βR=1, I show that the agent's wealth either approaches infinity almost surely or converges to a finite level almost surely. For βR
TL;DR: In this article, the authors analyze under what conditions agents exchange coins and the tax generates revenues, showing that a low exchange fee, high punishments for using old coins, and a long time period between re-mintings induce people to use new coins.
Abstract: Gesell taxes on money have recently received attention as a way of alleviating the zero lower bound on interest rates. Less known is that such taxes generated seigniorage in medieval Europe for around two centuries. When a Gesell tax was levied, current coins ceased to be legal and had to be exchanged into new coins for a fee. Using a cash‐in‐advance model, we analyze under what conditions agents exchange coins and the tax generates revenues. A low exchange fee, high punishments for using old coins, and a long time period between re‐mintings induce people to use new coins.
TL;DR: In this article, the authors investigated the impact of various policies to reduce the spread of epidemics on the functioning of key areas of the economy and found no clear links between parents counteracting the spreading of the epidemic, accessible to infected and diseased people, and the economic economy.
Abstract: Objective: The aim of the article was to investigate the impact of various policies to reduce the spread of epidemics on the functioning of key areas of the economy.
Research Design & Methods: The study was constructed as an analysis of the development of epidemics in selected countries over time. Data was collected on the development of the epidemic, adopted models of fighting the epidemic, both in the area of restrictions and restrictions, as well as economic support measures. In order to find an answer to the question of which model of fighting the epidemic is the most effective, countries that used different methods of fighting were compared. The study used a quantitative method to present data on the scale of the epidemic crisis and also to present the economic crisis: the size of the unemployment rate, production volume in industry, and retail trade in the countries studied. A partial literature query, comparative method and case study method were also used.
Findings: The study showed no clear links between parents counteracting the spread of the epidemic, accessible to infected and diseased people, and the economic economy. The observations presented in the article may constitute an introduction to further research on the policies applied during the epidemic. in order to present clear correlations and benchmark models, it would be necessary to obtain daily data for the individual indicators and conduct research over a longer period.
Contribution & Value Added: This article as a whole compiles and analyses what actions were taken by national governments to limit the spread of the coronavirus epidemic. The article also describes how the economies of these countries responded to the actions taken.
TL;DR: In this paper, the authors analyze how information about candidate quality affects the choice of electoral platforms made by an office-motivated political challenger, where the voter cares for both policy and the candidates' quality and can learn about the challenger's quality by buying information.
Abstract: We analyze how information about candidate quality affects the choice of electoral platforms made by an office‐motivated political challenger. The incumbent is of known quality and located at the ideal policy of the voter. The voter cares for both policy and the candidates' quality and can learn about the challenger's quality by buying information. A high‐quality challenger then has an incentive to signal her quality by choosing a policy that induces the voter to buy information. We first study the benchmark case in which the information is supplied exogenously, and its quality is independent of the challenger's platform; this yields multiple equilibria and indeterminacy of equilibrium platforms. By contrast, when the information is supplied by a profit‐maximizing media outlet, its quality depends on the challenger's platform and we obtain a unique equilibrium platform. In particular, when the incumbent's quality is relatively low, the media coverage rises and the challenger's platform diverges further from the voter's ideal policy as the voter's preference for quality increases.