SAFE working paper
https://safe-frankfurt.de/de/publikationen/working-papers.html
Refine
Year of publication
Document Type
- Working Paper (407)
Language
- English (407)
Has Fulltext
- yes (407)
Is part of the Bibliography
- no (407)
Keywords
- Liquidity (9)
- COVID-19 (7)
- General Equilibrium (7)
- welfare (7)
- Asset Pricing (6)
- ambiguity (6)
- competition (6)
- liquidity (6)
- ESG (5)
- asset pricing (5)
- climate change (5)
- human capital (5)
- systemic risk (5)
- Basel III (4)
- Business Cycle (4)
- Corporate Social Responsibility (4)
- Covid-19 (4)
- Household Finance (4)
- Portfolio choice (4)
- Systemic Risk (4)
- bail-in (4)
- banking (4)
- household finance (4)
- peer effects (4)
- prudential supervision (4)
- regulatory arbitrage (4)
- social security (4)
- Artificial Intelligence (3)
- Banking Regulation (3)
- Banking Union (3)
- China (3)
- Contagion (3)
- Corporate Bonds (3)
- Credit Risk (3)
- Entrepreneurship (3)
- Financial Crises (3)
- Financial Crisis (3)
- Financial Stability (3)
- Fragmentation (3)
- Granger Causality (3)
- High-Frequency Trading (3)
- Household finance (3)
- Inside Debt (3)
- Interconnectedness (3)
- Labor income risk (3)
- Liquidity Provision (3)
- Machine learning (3)
- Monetary Policy (3)
- Price Efficiency (3)
- Recursive Preferences (3)
- Retail investors (3)
- Single Supervisory Mechanism (3)
- Solvency II (3)
- Sustainable Finance (3)
- Sustainable Investments (3)
- Unconventional Monetary Policy (3)
- aggregate risk (3)
- banking union (3)
- banks (3)
- capital regulation (3)
- capital structure (3)
- contagion (3)
- corporate governance (3)
- discrimination (3)
- financial literacy (3)
- habit formation (3)
- idiosyncratic risk (3)
- incentives (3)
- incomplete markets (3)
- inequality (3)
- laboratory experiments (3)
- leverage (3)
- leveraged buyouts (3)
- market discipline (3)
- monetary policy (3)
- political economy (3)
- private equity (3)
- recursive utility (3)
- regulation (3)
- retirement income (3)
- shadow banking (3)
- social interactions (3)
- social preferences (3)
- stochastic volatility (3)
- trading behavior (3)
- volatility (3)
- 401(k) plan (2)
- Asset Allocation (2)
- Asset pricing (2)
- Banks (2)
- Bayesian inference (2)
- Board of Directors (2)
- Bond Markets (2)
- CDS (2)
- Choquet expected utility (2)
- Circuit Breaker (2)
- Collateral Policy (2)
- Compensation Structure (2)
- Competition (2)
- Consumption (2)
- Corporate Debt Structure (2)
- Corporate Governance (2)
- Credit Spread (2)
- Dark Trading (2)
- Disposition Effect (2)
- ECB (2)
- ESG Rating Agencies (2)
- ETFs (2)
- Economic and Monetary Union (2)
- Eligibility premium (2)
- Endogenous Growth (2)
- Endogenous growth (2)
- Equity Premium (2)
- European Banking Union (2)
- FinTech (2)
- Financial Institutions (2)
- Financial literacy (2)
- Fund Flows (2)
- German reunification (2)
- Germany (2)
- Hawkes processes (2)
- Health shocks (2)
- Heterogeneous innovation (2)
- High-Frequency Traders (HFTs) (2)
- Homeownership (2)
- India (2)
- Inequality (2)
- Insurance (2)
- Interest Rate Guarantees (2)
- International Finance (2)
- Jumps (2)
- Learning (2)
- Life Insurance (2)
- Long-run Risk (2)
- Market Fragmentation (2)
- Market Microstructure (2)
- Market Quality (2)
- OTC markets (2)
- P2P lending (2)
- Parameter Elicitation (2)
- Price Discovery (2)
- Product Market Competition (2)
- R&D (2)
- Real Effects (2)
- Regulation (2)
- Retail Investor (2)
- Risk-Taking (2)
- Self-control (2)
- Social Networks (2)
- Stochastic mortality risk (2)
- Systemic risk (2)
- Term Structure of Interest Rates (2)
- Volatility (2)
- Volatility Interruption (2)
- active shareholders (2)
- annuity (2)
- austerity (2)
- bailout (2)
- bank regulation (2)
- bank resolution (2)
- bank runs (2)
- borrowing constraints (2)
- bubbles (2)
- compensation (2)
- confidence (2)
- consumer credit (2)
- consumption (2)
- consumption hump (2)
- consumption-portfolio choice (2)
- cooperation (2)
- credit funds (2)
- credit supply (2)
- crowdfunding (2)
- crowding out (2)
- crowdinvesting (2)
- debt sustainability (2)
- delayed retirement (2)
- dynamic portfolio choice (2)
- equity premium (2)
- euro area (2)
- executive compensation (2)
- financial advice (2)
- financial crisis (2)
- financial regulation (2)
- financial stability (2)
- financing decisions (2)
- financing policy (2)
- fintech (2)
- fiscal policy (2)
- fiscal reaction function (2)
- general equilibrium (2)
- global banks (2)
- green finance (2)
- growth (2)
- heterogeneous agents (2)
- household debt (2)
- individual investor (2)
- individual investors (2)
- insurance (2)
- interbank networks (2)
- investment (2)
- investment decisions (2)
- investments (2)
- jumps (2)
- lifetime income (2)
- liquidity provision (2)
- liquidity risk (2)
- longevity risk (2)
- managerial incentives (2)
- monitoring (2)
- newly founded firms (2)
- non-bank financial intermediation (2)
- optimal investment (2)
- panel VAR (2)
- pension (2)
- pension reform (2)
- persistence (2)
- population aging (2)
- portfolio choice (2)
- predictability (2)
- principles-based regulation (2)
- professional networks (2)
- recapitalization (2)
- retirement age (2)
- return predictability (2)
- risk taking (2)
- risk-taking (2)
- saving (2)
- securities regulation (2)
- social media (2)
- sovereign risk (2)
- stochastic differential utility (2)
- stock market participation (2)
- sustainability (2)
- syndicated loans (2)
- taxes (2)
- transmission (2)
- uncertainty (2)
- unconventional monetary policy (2)
- welfare loss (2)
- 2-Sector Model (1)
- AI borrower classification (1)
- AI enabled credit scoring (1)
- Adverse Selection (1)
- Age (1)
- Algorithmic Discrimination (1)
- Algorithmic transparency (1)
- Amortization payments (1)
- AnaCredit (1)
- Anchoring (1)
- Angel (1)
- Annual General Meeting (1)
- Annuity (1)
- Anonymity (1)
- Anticipated Inflation (1)
- Apache Spark (1)
- Asset Allocation, Contagion (1)
- Asset Liquidation (1)
- Asset Prices (1)
- Asset allocation (1)
- Asymmetric Information (1)
- Asymmetric Tax Regimes (1)
- Austerity Measures (1)
- Bank Bailout (1)
- Bank Capital (1)
- Bank Corporate Governance (1)
- Bank Credit (1)
- Bank Defaults (1)
- Bank Lending (1)
- Bank Recapitalization (1)
- Bank Resolution (1)
- Bank affiliation (1)
- Banking Stability (1)
- Banking Supervision (1)
- Bargaining (1)
- Basel regulation (1)
- Batch Learning (1)
- Bayesian learning (1)
- Belief Formation (1)
- Belief up-dating (1)
- Beliefs (1)
- Big Data (1)
- Big Five (1)
- Big data (1)
- Bitcoin (1)
- Board Appointments (1)
- Bond risk premia (1)
- Broker (1)
- Bubbles (1)
- Bunching (1)
- Business Subsidies (1)
- C corporations (1)
- CAPM (1)
- COVID-19 Pandemic (1)
- COVID-19 news (1)
- Capital Purchase Program (1)
- Car Loans (1)
- Carbon Taxation (1)
- Carbon abatement (1)
- Causal Machine Learning (1)
- Central Clearing (1)
- Central Counterparty Clearing House (CCP) (1)
- Centrality (1)
- Citation Network Analysis (1)
- Climate Change (1)
- Climate change (1)
- Climate change economics (1)
- Clustering (1)
- Co-residence (1)
- CoCo Bond (1)
- CoCo bonds (1)
- Coco bonds (1)
- Cognition (1)
- Collateral (1)
- Collateral Constraint (1)
- Colocation (1)
- Commodities (1)
- Comovements (1)
- Confirmatory Bias (1)
- Connectivity (1)
- Consumer credit (1)
- Consumer financial protection (1)
- Consumption hump (1)
- Consumption-portfolio choice (1)
- Contagion Risk (1)
- Contingent Convertible Capital (1)
- Contract terms (1)
- Coronavirus (1)
- Corporate Distress (1)
- Corporate Groups (1)
- Corporate Name Change (1)
- Corporate concentration (1)
- Corporate financing (1)
- Counterparty Risk (1)
- Creative destruction (1)
- Credit Default Swap (CDS) (1)
- Credit lines (1)
- Creditor Protection (1)
- Cross-Section of Returns (1)
- Cryptocurrencies (1)
- Cultural Influences on Economic Behavior (1)
- Cumulative prospect theory (1)
- Customer data sharing (1)
- DCC-GARCH (1)
- DSGE models (1)
- Dark Pools (1)
- Data access (1)
- Data portability (1)
- Database linking (1)
- Default (1)
- Delaunay Interpolation (1)
- Democratic Legitimacy (1)
- Demographic Change (1)
- Depreciation (1)
- Derivatives (1)
- Designated Market Makers (DMMs) Market Making (1)
- DiD (1)
- Dictionary (1)
- Different Beliefs (1)
- Digital footprints (1)
- Digitalized Markets (1)
- Disclosure (1)
- Discount Rates (1)
- Discourse (1)
- Disintegration (1)
- Distributed Computing (1)
- Dividend Payments (1)
- Dividend Policy (1)
- Dividends (1)
- Double Volume Caps (1)
- Durable consumption (1)
- Duration of Civil Proceedings (1)
- Dynamic Models (1)
- Dynamic Networks (1)
- Dynamic and Reliable Regulation (1)
- Dynamic inconsistency (1)
- E.U. Corporate Law (1)
- ESG Investing (1)
- ESG ratings (1)
- ESM (1)
- EU (1)
- EU countries (1)
- EU industrial production (1)
- Econometrics (1)
- Economics (1)
- Education Subsidy (1)
- Efficiency Wages (1)
- Emissions (1)
- Empirical Asset Pricing (1)
- Endogenous Asset Market Participation (1)
- Endogenous gridpoints Method (1)
- Energy Efficiency (1)
- Energy Performance Certificate (1)
- Energy efficiency (1)
- Enriched Digital Footprint (1)
- Entity matching (1)
- Entity resolution (1)
- Entrepreneurial Finance (1)
- Epstein-Zin preferences (1)
- Equilibrium Thinking (1)
- Equity options (1)
- Ethics (1)
- Euro-zone Government Bonds (1)
- European Banking Authority (1)
- European Banking Authority (EBA) (1)
- European Capital Markets Union (1)
- European Central Bank (1)
- European Central Bank (ECB) (1)
- European Commission (1)
- European Investment Bank (1)
- European Market Infrastructure Regulation (EMIR) (1)
- European Stability Mechanism (1)
- European Systemic Risk Board (1)
- European debt crisis (1)
- European integration (1)
- Eurosystem collateral eligibility (1)
- Excess sensitivity (1)
- Execution Cost (1)
- Executive Compensation (1)
- Executive Remuneration (1)
- Expectation Error (1)
- Expectation Formation (1)
- Expectation formation (1)
- Expectations (1)
- Expectation–Maximisation (1)
- Expected Returns (1)
- Expected credit losses (1)
- Experience (1)
- Experiment (1)
- Experimental Asset Markets (1)
- Experimental Economics (1)
- Experimental Finance (1)
- Explainable machine learning (1)
- Externalities (1)
- Extracurricular Activities (1)
- Extrapolation (1)
- FBSDE (1)
- Fair value accounting (1)
- Family dynamics (1)
- Feedback (1)
- Field Experiment (1)
- Filtering (1)
- Finance and Employment (1)
- Financial Advice (1)
- Financial Constraints (1)
- Financial Distress (1)
- Financial Education (1)
- Financial Frictions (1)
- Financial Literacy (1)
- Financial Market Cycles (1)
- Financial Markets (1)
- Financial Networks (1)
- Financial crisis (1)
- Financial education (1)
- Financial stability (1)
- Financing Conditions (1)
- Financing Constraints (1)
- Financing Costs (1)
- Firm Investment (1)
- Firm valuation (1)
- Firm-bank relationship (1)
- Firms (1)
- Fiscal Policy (1)
- Fiscal Stabilization (1)
- Fiscal policy (1)
- Fiscal theory of the price level (1)
- Fixed-Income (1)
- Flash Crash (1)
- Flight-to-safety (1)
- Formalism (1)
- Formative experiences (1)
- Forward-looking models (1)
- Frictions (1)
- G-SIB (1)
- GDP growth (1)
- GFSY (1)
- GMM Estimation (1)
- Gambling (1)
- Game Theory (1)
- Gender Differences (1)
- General Equilibrium Asset Pricing (1)
- Generations (1)
- German corporate governance (1)
- Germany Inc. (1)
- Gig-economy (1)
- Gini (1)
- Global Temperature (1)
- Governance (1)
- Government (1)
- Government debt (1)
- Granger causality (1)
- Green Nudging (1)
- Green Quantitative Easing (1)
- Greenwashing (1)
- Group Interesterest (1)
- Habit-formation (1)
- Hazard estimation (1)
- Health expenses (1)
- Health jumps (1)
- Heterogeneous Agents (1)
- Heterogeneous Firms (1)
- Heterogeneous Preferences (1)
- Heterogeneous agents (1)
- High Frequency Data (1)
- High-Frequency Trading (HFT) (1)
- High-frequency event study (1)
- Higher Moments of Return (1)
- Home ownership (1)
- Homestead exemptions (1)
- Homophily (1)
- Hong test (1)
- House prices (1)
- Household Portfolios (1)
- Household Wealth (1)
- Household saving (1)
- Hybrid Markets (1)
- IV approach (1)
- Identification (1)
- Idiosyncratic Risk (1)
- Idiosyncratic volatility puzzle (1)
- Immediacy (1)
- Implied volatility (1)
- Impulse-response (1)
- Incentives (1)
- Income and Wealth Inequality (1)
- Incomplete Markets (1)
- Incomplete markets (1)
- Incubator (1)
- Incurred loss model (1)
- Individual Investors (1)
- Individual investors (1)
- Industry Classification (1)
- Inflation (1)
- Inflation Beliefs (1)
- Information Acquisition (1)
- Information Frictions (1)
- Information Production (1)
- Information Treatment (1)
- Information processing (1)
- Infrastructure (1)
- Innovation (1)
- Institution formation (1)
- Institutional Investor (1)
- Institutional Investors’ Ownership (1)
- Insurance Activities (1)
- Insurance Companies (1)
- Integrated Assessment Model (1)
- Interbank Markets (1)
- Interdealer Brokerage (1)
- Interest Rate Risk (1)
- Intermediated work (1)
- International finance (1)
- International relationships (1)
- Investment Styles (1)
- Investment attitudes (1)
- Investment funds (1)
- Investment-Specific Shocks (1)
- Investor behavior (1)
- Investor education (1)
- Investor sentiment (1)
- Investors Heterogeneity (1)
- Job Match Quality (1)
- LBO spillovers (1)
- LBOs (1)
- LSTM neural networks (1)
- Labor Hoarding (1)
- Labor Income Risk (1)
- Labor Markets (1)
- Law Enforcement (1)
- Leading indicator (1)
- Lending (1)
- Leverage (1)
- Leveraged buyouts (1)
- Life Events (1)
- Life Insurance Surrender (1)
- Life Insurers (1)
- Life course transitions (1)
- Life-Cycle Model (1)
- Life-cycle hypothesis (1)
- Liquidity Coinsurance (1)
- Liquidity Risk (1)
- Liquidity Shock (1)
- Liquidity premium (1)
- Liquidity provider incentives (1)
- Liquidity provision (1)
- Living Wills (1)
- Loan loss accounting (1)
- Locus of control (1)
- Long-Run Risk (1)
- Long-run risk (1)
- Loss Sharing (1)
- Loss-aversion (1)
- Lottery stocks (1)
- Low-emission vehicles (1)
- MREL (1)
- MTS Bond Market (1)
- Machine Learning (1)
- Macroeconomics (1)
- Macroprudential policy (1)
- Margin (1)
- Market (in)completeness (1)
- Market Design (1)
- Market Fragility (1)
- Market Liquidity (1)
- Market Structure (1)
- Market efficiency (1)
- Market fragmentation (1)
- Marketplace lending (1)
- Maximum Likelihood (1)
- Mental models (1)
- Meritocracy (1)
- MiFID II (1)
- Minority Shareholder Protection (1)
- Mitigation (1)
- Model Selection (1)
- Model-based regulation (1)
- Monetary Policy Surprises (1)
- Money Market (1)
- Moral Hazar (1)
- Morality (1)
- Mortality risk (1)
- Mortgage design (1)
- Mortgage supply (1)
- Mortgages (1)
- Multi-Layer Network (1)
- Multi-level marketing (1)
- Multilayer networks (1)
- Multitasking (1)
- Mundellian trilemma (1)
- Mutual Funds (1)
- Mutual funds (1)
- Mutually Exciting Processes (1)
- Mutually exciting processes (1)
- NLP (1)
- Narrative Approach (1)
- Net-zero transition (1)
- Network Combination (1)
- Network Communities (1)
- Network theory (1)
- Networks (1)
- Nominal Rigidities (1)
- Non-bank lead arrangers (1)
- Nonlinear solution methods (1)
- Numerical Solution (1)
- OTC Markets (1)
- OTC derivatives (1)
- Obfuscation (1)
- Oil (1)
- Oil market (1)
- On-the-Job Search (1)
- Open banking (1)
- Opening Auction (1)
- Opening Call Auction (1)
- Optimal Regulation (1)
- Optimism (1)
- Over-Confidence (1)
- Overlapping Generations (1)
- Overlapping generations (1)
- Pandemic (1)
- Partial Information (1)
- Paycheck Protection Program (1)
- Pecuniary Externality (1)
- Peer effects (1)
- Peers (1)
- Persistent and Transitory Income Shocks (1)
- Personal Finance (1)
- Personal bankruptcy (1)
- Personality traits (1)
- Petroleum-based Economies (1)
- Pivotality (1)
- Planning (1)
- Policy Effects (1)
- Pollution (1)
- Portfolio Management (1)
- Portfolio Rebalancing (1)
- Portfolio allocation (1)
- Pre-Opening (1)
- Precautionary Saving (1)
- Preference Stability (1)
- Preference for early resolution of uncertainty (1)
- Preference survey module (1)
- Price Competition (1)
- Price Pressures (1)
- Private equity (1)
- Probability Weighting Function (1)
- Product returns (1)
- Production (1)
- Production Economy (1)
- Program Evaluation (1)
- Progressive Taxation (1)
- Proprietary Trading (1)
- Prosociality (1)
- Prospect Theory (1)
- Prudential filter (1)
- Public Goods (1)
- Public financial news (1)
- Public-Private Partnerships (1)
- Quantile Causality (1)
- Quantitative Easing (1)
- Quantitative easing (1)
- R&D Investment (1)
- R&D expenses (1)
- Rational Inattention (1)
- Real options (1)
- Realization Utility (1)
- Record resolution (1)
- Recursive Utility (1)
- Redemptions (1)
- Referrals (1)
- Related Party Transactions (1)
- Repeated Games (1)
- Repeated Principal-Agent Model (1)
- Repo Specialness (1)
- Reputation (1)
- Resolution Planning (1)
- Responsible investment (1)
- Restructuring (1)
- Return predictability (1)
- Risk Assessment (1)
- Risk Attitudes (1)
- Risk Aversion (1)
- Risk Measurement (1)
- Risk Pooling (1)
- Risk Preferences (1)
- Risk Premium (1)
- Risk taking (1)
- Rubin Causal Model (1)
- S corporations (1)
- S&P 500 (1)
- SIFI (1)
- SME Trading (1)
- SRB (1)
- SRF (1)
- Saving puzzles (1)
- Say on Pay (1)
- Screening (1)
- Search Frictions (1)
- Securities Market Regulation (1)
- Securitization (1)
- Segmentation (1)
- Self-Control (1)
- Selling Behavior (1)
- Sentiment Analysis (1)
- Shareholder Letters (1)
- Shareholder Rights Directive (1)
- Short-run Risk (1)
- Signaling (1)
- Similarity (1)
- Similarity encoding (1)
- Sin Stocks (1)
- Single Resolution Mechanism (1)
- Skewness (1)
- Slow-Moving Capital (1)
- Small Business (1)
- Social Security (1)
- Social Security claiming (1)
- Social Security claiming age (1)
- Social media (1)
- Social networks (1)
- Socially responsible investing (1)
- Sociology of Finance (1)
- Sovereign (1)
- Sovereign Bonds (1)
- Sovereign Risk (1)
- Sovereign credit risk (1)
- Sovereign risk (1)
- Sparsity (1)
- Spatial autoregressive model (1)
- Speculation (1)
- Spike–and–Slab prior (1)
- Stages (1)
- Stay-Home (1)
- Stochastic Search Variable Selection (1)
- Stochastic volatility (1)
- Stock Market (1)
- Stock Market Participation (1)
- Stock Markets (1)
- Stock market (1)
- Stock market wealth (1)
- Stockholding (1)
- Stress Test (1)
- Structural Bank Reform (1)
- Structured retail products (1)
- Subjective Survival Beliefs (1)
- Subjective expectations (1)
- Supervision (1)
- Systematic Risk (1)
- Systemic events (1)
- Systemically Important Financial Institutions (1)
- TARP (1)
- TIPS (1)
- TIPS–Treasury puzzle (1)
- TLAC (1)
- Tail Risk (1)
- Tax Cuts and Jobs Act (1)
- Tax Multiplier (1)
- Taxation of Capital (1)
- Technology Adoption (1)
- Technology Park (1)
- Technology spillover (1)
- Term life insurance (1)
- Textual Analysis (1)
- The Community Reinvestment Act (1)
- Time Inconsistency (1)
- Time Preferences (1)
- Time-varying networks (1)
- Tobin tax (1)
- Top Income Taxation (1)
- Toxic Emissions (1)
- Trading (1)
- Trading volume (1)
- Transaction costs (1)
- Transitional Dynamics (1)
- Transparency (1)
- Tree-based models (1)
- Trust Game (1)
- Tunneling (1)
- Turning points (1)
- Twitter (1)
- Uncertainty (1)
- Unconventional Monetary policy (1)
- Utility Functions (1)
- Utility Theory (1)
- Utilization (1)
- VAR estimation (1)
- VaR (1)
- Value-at-risk (1)
- Variance Risk Premium (1)
- Venture Capital (1)
- Venue Choice (1)
- WHO alerts (1)
- Wage Rigidity (1)
- Wage rigidity (1)
- Weak Instruments (1)
- Wealth shocks (1)
- Welfare Costs (1)
- WpHG (1)
- XAI (1)
- Zombie Lending (1)
- adaptation (1)
- adviser (1)
- age (1)
- age limits (1)
- agency (1)
- agglomeration (1)
- allocation bias (1)
- ambiguity premium (1)
- angel finance (1)
- anomalies (1)
- asset markets (1)
- asset prices (1)
- asset purchases (1)
- asset-backed securities (1)
- assetbacked securities (1)
- asymmetric shocks (1)
- attention (1)
- attitudes towards inequality (1)
- auction format (1)
- average treatment effect (1)
- backward stochastic differential equation (1)
- bailouts (1)
- balance of payments (1)
- bank (1)
- bank capital ratios (1)
- bank integration (1)
- bank lending (1)
- bank performance (1)
- bank stability (1)
- banking networks (1)
- banking regulation (1)
- behavioral economics (1)
- belief effect (1)
- belief estimation (1)
- belief formation (1)
- belief updates (1)
- belief updating (1)
- beliefs (1)
- benchmarks (1)
- betting (1)
- bid-ask spread (1)
- bidder surplus (1)
- big data (1)
- biometric risks (1)
- booms (1)
- bounded rationality (1)
- bureaucrats' incentives (1)
- call auctions (1)
- capacity utilization (1)
- capital maintenance (1)
- capital markets (1)
- capital ratios (1)
- caps (1)
- catastrophic events (1)
- catastrophic risk (1)
- central bank policy (1)
- central counter parties (1)
- centralisation (1)
- centrality metrics (1)
- cheating (1)
- client involvement (1)
- climate behavior (1)
- climate policies (1)
- climate risk (1)
- coinvestment (1)
- collateral reuse (1)
- collective action clauses (1)
- commercial banks (1)
- communication (1)
- compensation design (1)
- competitive equilibrium (1)
- competitiveness (1)
- compliance behavior (1)
- conditionality (1)
- confirmatory biases (1)
- conflict of laws (1)
- connected industries (1)
- construction procurement (1)
- consumer education (1)
- consumer protection (1)
- consumption commitments (1)
- consumption-based models (1)
- consumption-portfolio decisions (1)
- contest (1)
- contingent capital (1)
- continuous limit order book (1)
- contract law (1)
- conventional monetary policy (1)
- convergence (1)
- coordination (1)
- corporate bonds (1)
- corporate deposits (1)
- corporate finance (1)
- corporate governance codes (1)
- corporate income tax (1)
- corporate restructuring (1)
- corporate savings (1)
- corporate taxation (1)
- counterfactual analysis (1)
- counterfactual thinking (1)
- credence goods (1)
- credit default swap (1)
- credit rationing (1)
- credit risk (1)
- credit scoring (1)
- credit scoring methodology (1)
- credit scoring regulation (1)
- cross-border insolvency (1)
- cross-section of expected stock returns (1)
- cross-section of stock return (1)
- cross-section of stock returns (1)
- crowdlending (1)
- crowdsponsoring (1)
- current account (1)
- cycle flows (1)
- cyclical liabilities (1)
- dash-for-cash (1)
- debt consolidation (1)
- decentralization theorem (1)
- default (1)
- deleveraging (1)
- democracy (1)
- demographic change (1)
- deregulation (1)
- designated market makers (1)
- dictator game (1)
- die game milk (1)
- differences of opinion (1)
- digital planning tool (1)
- disaster risk (1)
- discourse analysis (1)
- discretionary lending (1)
- distress (1)
- distributional consequences of monetary policy (1)
- divestments (1)
- dividends (1)
- dollar funding (1)
- duration of civil proceedings (1)
- duration of pay (1)
- dynamic correlation (1)
- dynamic inconsistency (1)
- early retirement (1)
- economic governance (1)
- economic preferences (1)
- economic rationality (1)
- economies of scale (1)
- education (1)
- educational intervention (1)
- elections (1)
- electricity (1)
- emissions trading system (ETS) (1)
- employees (1)
- employer-employee level dataset (1)
- endogenous information acquisition (1)
- endogenous risk (1)
- energy (1)
- energy crisis (1)
- entrepreneurial spawning (1)
- entrepreneurship (1)
- equity (1)
- equity market integration (1)
- erm structure of interest rates (1)
- event study (1)
- exit (1)
- exit strategies (1)
- experiences (1)
- experimental asset markets (1)
- experimental economics (1)
- externalities (1)
- extreme value theory (1)
- factor timing (1)
- fairness (1)
- familiarity (1)
- federal transfers (1)
- fiduciary (1)
- field study (1)
- filtering (1)
- finance (1)
- finance and employment (1)
- finance wage premium (1)
- financial constraints (1)
- financial contracts (1)
- financial disasters (1)
- financial fragility (1)
- financial frictions (1)
- financial institutions (1)
- financial literacy determinants (1)
- financial market (1)
- financial markets (1)
- financial privacy (1)
- financial retrenchment (1)
- financial risk-taking (1)
- financial solidarity (1)
- financial spillover (1)
- financing (1)
- financing constraint (1)
- fire sales (1)
- firm growth (1)
- first-price auctions (1)
- fiscal adjustment (1)
- fiscal austerity (1)
- fiscal decentralization (1)
- fiscal federalism (1)
- fiscal multipliers (1)
- fiscal solidarity (1)
- fiscal stress (1)
- fiscal union (1)
- fixed point approach (1)
- flash crashes (1)
- flexible-hour contracts (1)
- foreign portfolio investment (1)
- fragmentation (1)
- free dividend fallacy (1)
- frequent batch auctions (1)
- funding dry-ups (1)
- game perceptions (1)
- gender wage gap (1)
- genetics (1)
- geographic expansion (1)
- global preference survey (1)
- goal orientation (1)
- government bonds (1)
- green financing (1)
- group identity (1)
- group law (1)
- group size (1)
- habit (1)
- health (1)
- hedge funds (1)
- hedging (1)
- hedging errors (1)
- heterogeneity (1)
- heterogeneous beliefs (1)
- heterogeneous monetary policy response (1)
- heterogeneous wage rigidity (1)
- high consumption volatility (1)
- high-frequency data (1)
- high-frequency traders (HFTs) (1)
- high-frequency trading (1)
- holdout litigation (1)
- household finance (1)
- households (1)
- housing (1)
- housing expenditure share (1)
- ideational shift (1)
- identification (1)
- idle time (1)
- impatience (1)
- implied correlation (1)
- implied volatility (1)
- impulse analysis (1)
- incentive pay (1)
- income dependent inflation (1)
- incomplete information (1)
- independent private values (1)
- individual retirement account (1)
- industrial organization (1)
- inference (1)
- inflation (1)
- inflation swaps (1)
- informal loans (1)
- informal markets (1)
- information demand (1)
- information flow (1)
- information processing (1)
- informativeness principle (1)
- input-output (1)
- institutional investors (1)
- insurance industry (1)
- interbank market (1)
- interbank markets (1)
- interbank network (1)
- interconnections (1)
- interdependent preferences (1)
- interest rate risk (1)
- intergenerational persistence (1)
- internal capital markets (1)
- internal ratings (1)
- international diversification benefits (1)
- international taxation (1)
- inverse probability weighting (1)
- investment behavior (1)
- investment biases (1)
- investment forum (1)
- investment guarantee (1)
- investment mistakes (1)
- investor behavior (1)
- investor protection (1)
- investor sentiment (1)
- isk premiums (1)
- jump risk (1)
- jumps in aggregate consumption (1)
- jumps in the longrun growth rate (1)
- labelling (1)
- labels (1)
- labor demand (1)
- labor hoarding (1)
- labor income (1)
- labor market (1)
- labor mobility (1)
- labor supply (1)
- laboratory experiment (1)
- labour economics (1)
- labour market policies (1)
- large language models (1)
- latency arbitrage (1)
- law and finance (1)
- law enforcement (1)
- learning strategy (1)
- leisure (1)
- lending (1)
- level and slope of implied volatility smile (1)
- life cycle model (1)
- life expectancy (1)
- life-cycle (1)
- life-cycle behavior (1)
- life-cycle household decisions (1)
- life-cycle hypothesis (1)
- life-cycle utility maximization (1)
- lifecycle (1)
- likelihood insensitivity (1)
- limited arbitrage (1)
- liquidity premium (1)
- loan officer (1)
- loan origination (1)
- local projection (1)
- local projections (1)
- locally non-diversifiable risk (1)
- location decisions (1)
- long-run growth (1)
- long-run risk (1)
- longevity (1)
- losses (1)
- lottery-type assets (1)
- lump sum (1)
- macro-prudential policy (1)
- macro-prudential supervision (1)
- macroprudential regulation (1)
- macroprudential supervision (1)
- management compensation (1)
- mandatory disclosure (1)
- marginal propensity to consume (1)
- market design (1)
- market enforcement (1)
- market infrastructure (1)
- market making (1)
- market microstructure (1)
- market price (1)
- market-based (1)
- matching (1)
- maturity (1)
- measure of ambiguity (1)
- media polarization (1)
- mergers and acquisitions (1)
- microdata (1)
- microprudential supervision (1)
- misperception (1)
- mnimum distribution requirements (1)
- monetary policy surprise (1)
- monetary policy surprise shocks (1)
- monetary transmission (1)
- monetary transmission mechanism (1)
- money (1)
- money in the utility function (1)
- money market funds (1)
- mood (1)
- moral hazard (1)
- moral values (1)
- mortgages (1)
- motivated beliefs (1)
- motivated reasoning (1)
- motivation for honesty (1)
- multi-unit auctions (1)
- multiple point of entry (1)
- multiplex networks (1)
- national interest (1)
- natural disasters (1)
- natural experiment (1)
- natural gas (1)
- natural rate (1)
- neoinstitutionalism (1)
- net zero transition (1)
- net-zero arbitrage (1)
- net-zero plans and targets (1)
- network (1)
- network analysis (1)
- network formation (1)
- network model (1)
- networks (1)
- non-Bayesian updates (1)
- non-linear VAR (1)
- non-performing assets (1)
- online borrowing (1)
- open economy (1)
- operational performance (1)
- opinion (1)
- optimal stopping (1)
- optimum currency area (1)
- option prices (1)
- option-implied distribution (1)
- otc derivatives markets (1)
- outgroup derogation (1)
- output fluctuations (1)
- overlapping generations (1)
- ownership concentration (1)
- pandemics (1)
- panel data (1)
- pari passu clauses (1)
- participation (1)
- patents (1)
- paycheck frequency (1)
- pensions (1)
- personality traits (1)
- pessimism (1)
- pharmaceutical industry (1)
- placebo technique (1)
- polarization (1)
- policy (1)
- policy reform (1)
- political behavior (1)
- political economy of bureaucracy (1)
- political polarization (1)
- pooling equilibrium (1)
- portfolio allocation (1)
- portfolio optimization (1)
- precautionary recapitalization (1)
- pricing (1)
- principal components (1)
- principal-agent models (1)
- private benefits of control (1)
- private markets (1)
- private sector involvement (1)
- probability of default (1)
- propensity score (1)
- prudential regulation (1)
- public debt (1)
- public markets (1)
- quantile regression (1)
- rank feedback (1)
- real estate lending (1)
- recent economic crisis (1)
- recursive preferences (1)
- redistribution (1)
- regression adjustment (1)
- regression discontinuity design (1)
- regulatory capture (1)
- rehypothecation (1)
- related party transactions (1)
- relationship lending (1)
- relative performance evaluation (1)
- relative performance feedback (1)
- renting vs. owning home (1)
- repeated games (1)
- replication (1)
- repo market (1)
- reporting (1)
- resiliency (1)
- responsibility (1)
- responsible lending (1)
- retained earnings (1)
- retirement (1)
- retirement expectations (1)
- retirement planning (1)
- return expectations (1)
- reverse mortgage (1)
- risk (1)
- risk management (1)
- risk preference (1)
- risk spillovers (1)
- safe assets (1)
- salience (1)
- saving behavior (1)
- saving puzzles (1)
- say-on-pay (1)
- school closures (1)
- screening (1)
- seasonal affective disorder (SAD) (1)
- secrecy (1)
- secular stagnation (1)
- securities lending (1)
- self-control (1)
- sentiment (1)
- separating equilibrium (1)
- severance pay caps (1)
- shareholder wealth (1)
- shocks (1)
- short-sale constraints (1)
- single point of entry (1)
- skill-biased technological change (1)
- slumps (1)
- small and medium enterprises (1)
- sniping (1)
- social (1)
- social centralization (1)
- social dilemma (1)
- social dilemmas (1)
- social identity (1)
- social networks (1)
- social norms (1)
- socialist education (1)
- socially responsible consumers (1)
- soft information (1)
- soft law (1)
- solution methods (1)
- solvency shocks (1)
- sophistication (1)
- source dependence (1)
- sovereign debt litigation (1)
- sovereign debt restructuring (1)
- sovereign debt standstill (1)
- spillover effects (1)
- spillovers (1)
- spread premium (1)
- sset pricing (1)
- stable convergence (1)
- stakeholder (1)
- staleness (1)
- state dependency (1)
- state-dependent sensitivity value-at-risk (SDSVaR) (1)
- state-owned enterprises (1)
- statistical discrimination (1)
- stochastic control (1)
- stock demand (1)
- stock market (1)
- stock market crisis (1)
- stock market investment (1)
- stock market volatility (1)
- stock return expectations (1)
- stockholding (1)
- strategic interaction of regulators (1)
- structured finance (1)
- supervisory board (1)
- survey experiments (1)
- sustainable finance (1)
- systematic risk (1)
- systemic importance (1)
- systemic risk, too-interconnected-to-fail (1)
- tail measure (1)
- tax (1)
- tax competition (1)
- tax cut (1)
- tax haven (1)
- tax havens (1)
- tax information exchange (1)
- tax information exchange agreements (1)
- tax intervention (1)
- taxing rights (1)
- taxonomies (1)
- temperature shocks (1)
- term premia (1)
- threshold vector auto-regressive models (1)
- time dependency (1)
- time series momentum (1)
- topic modelling (1)
- trading (1)
- trading activity (1)
- trading strategies (1)
- transactions (1)
- transition risk (1)
- treasury auctions (1)
- trend chasing (1)
- trust (1)
- trust driven expectations (1)
- trust evolutionary games (1)
- trust game (1)
- tunneling (1)
- twin study (1)
- tâtonnement (1)
- unemployment (1)
- utility functions (1)
- validation (1)
- valuation discount (1)
- valuation ratios (1)
- variable annuity (1)
- variance risk premium (1)
- venture capital (1)
- vertical fiscal imbalances (1)
- volatility of volatility (1)
- vulture creditors (1)
- wage hump (1)
- wealth (1)
- weather (1)
- welfare costs (1)
- wholesale shocks (1)
- worker-firm panels (1)
- workforce (1)
- yield spreads (1)
- zero returns (1)
- fiscal multipliers (1)
- fiscal policy (1)
- ΔCoVaR (1)
- financial literacy (1)
Institute
- Center for Financial Studies (CFS) (407) (remove)
422
Experiments are an important tool in economic research. However, it is unclear to which extent the control of experiments extends to the perceptions subjects form of such experimental decision situations. This paper is the first to explicitly elicit perceptions of the dictator and trust game and shows that there is substantial heterogeneity in how subjects perceive the same game. Moreover, game perceptions depend not only on the game itself but also on the order of games (i.e., the broader experimental context in which the game is embedded) and the subject herself. This highlights that the control of experiments does not necessarily extend to game perceptions. The paper also demonstrates that perceptions are correlated with game behavior and moderate the relationship between game behavior and field behavior, thereby underscoring the importance and relevance of game perceptions for economic research.
420
We educate investors with significant dividend holdings about the benefits of dividend reinvestment and the costs of misperceiving dividends as additional, free income. The intervention increases planned dividend reinvestment in survey responses. Using trading records, we observe a corresponding causal increase in dividend reinvestment in the field of roughly 50 cents for every euro received. This holds relative to their prior behavior and a placebo sample. Investors who learned the most from the intervention update their trading by the largest extent. The results suggest the free dividends fallacy is a significant source of dividend demand. Our study demonstrates that simple, targeted, and focused educational interventions can affect investment behavior.
421
How does the design of debt repayment schedules affect household borrowing? To answer this question, we exploit a Swedish policy reform that eliminated interest-only mortgages for loan-to-value ratios above 50%. We document substantial bunching at the threshold, leading to 5% lower borrowing. Wealthy borrowers drive the results, challenging credit constraints as the primary explanation. We develop a model to evaluate the mechanisms driving household behavior and find that much of the effect comes from households experiencing ongoing flow disutility to amortization payments. Our results indicate that mortgage contracts with low initial payments substantially increase household borrowing and lifetime interest costs.
419
Inflation and trading
(2024)
We study how investors respond to inflation combining a customized survey experiment with trading data at a time of historically high inflation. Investors' beliefs about the stock return-inflation relation are very heterogeneous in the cross section and on average too optimistic. Moreover, many investors appear unaware of inflation-hedging strategies despite being otherwise well-informed about inflation and asset returns. Consequently, whereas exogenous shifts in inflation expectations do not impact return expectations, information on past returns during periods of high inflation leads to negative updating about the perceived stock-return impact of inflation, which feeds into return expectations and subsequent actual trading behavior.
417
This paper studies whether Eurosystem collateral eligibility played a role in the portfolio choices of euro area asset managers during the “dash-for-cash” episode of 2020. We find that asset managers reduced their allocation to ECB-eligible corporate bonds, selling them in order to finance redemptions, while simultaneously increasing their cash holdings. These findings add nuance to previous studies of liquidity strains and price dislocations in the corporate bond market during the onset of the Covid-19 pandemic, indicating a greater willingness of dealers to increase their inventories of corporate bonds pledgeable with the ECB. Analysing the price impact of these portfolio choices, we also find evidence pointing to price pressure for both ECB-eligible and ineligible corporate bonds. Bonds that were held to a larger extent by investment funds in our sample experienced higher price pressure, although the impact was lower for ECB-eligible bonds. We also discuss broader implications for the related policy debate about how central banks could mitigate similar types of liquidity shocks.
416
What are the aggregate and distributional consequences of the relationship be-tween an individual’s social network and financial decisions? Motivated by several well-documented facts about the influence of social connections on financial decisions, we build and calibrate a model of stock market participation with a social network that emphasizes the interplay between connectivity and network structure. Since connections to informed agents help spread information, there is a pivotal role for factors that determine sorting among agents. An increase in the average number of connections raises the average participation rate, mostly due to richer agents. A higher degree of sorting benefits richer agents by creating clusters where information spreads more efficiently. We show empirical evidence consistent with the importance of connectivity and sorting. We discuss several new avenues for future research into the aggregate impact of peer effects in finance.
415
In this study, we unpack the ESG ratings of four prominent agencies in Europe and find that (i) each single E, S, G pillar explains the overall ESG score differently,(ii) there is a low co-movement between the three E, S, G pillars and (iii) there are specific ESG Key Performance Indicators (KPIs) that are driving these ratings more than others. We argue that such discrepancies might mislead firms about their actual ESG status, potentially leading to cherry-picking areas for improvement, thus raising questions about the accuracy and effectiveness of ESG evaluations in both explaining sustainability and driving capital toward sustainable companies.
414
We document the individual willingness to act against climate change and study the role of social norms in a large sample of US adults. Individual beliefs about social norms positively predict pro-climate donations, comparable in strength to universal moral values and economic preferences such as patience and reciprocity. However, we document systematic misperceptions of social norms. Respondents vastly underestimate the prevalence of climate-friendly behaviors and norms. Correcting these misperceptions in an experiment causally raises individual willingness to act against climate change as well as individual support for climate policies. The effects are strongest for individuals who are skeptical about the existence and threat of global warming.
413
Can consumption-based mechanisms generate positive and time-varying real term premia as we see in the data? I show that only models with time-varying risk aversion or models with high consumption risk can independently produce these patterns. The latter explanation has not been analysed before with respect to real term premia, and it relies on a small group of investors exposed to high consumption risk. Additionally, it can give rise to a “consumption-based arbitrageur” story of term premia. In relation to preferences, I consider models with both time-separable and recursive utility functions. Specifically for recursive utility, I introduce a novel perturbation solution method in terms of the intertemporal elasticity of substitution. This approach has not been used before in such models, it is easy to implement, and it allows a wide range of values for the parameter of intertemporal elasticity of substitution.
412
We conduct a field experiment with clients of a German universal bank to explore the impact of peer information on sustainable retail investments. Our results show that infor-mation about peers’ inclination towards sustainable investing raises the amount allocated to stock funds labeled sustainable, when communicated during a buying decision. This effect is primarily driven by participants initially underestimating peers’ propensity to invest sustainably. Further, treated individuals indicate an increased interest in addi-tional information on sustainable investments, primarily on risk and return expectations. However, when analyzing account-level portfolio holding data over time, we detect no spillover effects of peer information on later sustainable investment decisions.
411
Many consumers care about climate change and other externalities associated with their purchases. We analyze the behavior and market effects of such “socially responsible consumers” in three parts. First, we develop a flexible theoretical framework to study competitive equilibria with rational consequentialist consumers. In violation of price taking, equilibrium feedback non-trivially dampens a consumer’s mitigation efforts, undermining responsible behavior. This leads to a new type of market failure, where even consumers who fully “internalize the externality” overconsume externality-generating goods. At the same time, socially responsible consumers change the relative effectiveness of taxes, caps, and other policies in lowering the externality. Second, since consumer beliefs about and preferences over dampening play a crucial role in our framework, we investigate them empirically via a tailored survey. Consistent with our model, consumers are predominantly consequentialist, and on average believe in dampening. Inconsistent with our model, however, many consumers fail to anticipate dampening. Third, therefore, we analyze how such “naive” consumers modify our theoretical conclusions. Naive consumers behave more responsibly than rational consumers in a single-good economy, but may behave less responsibly in a multi-good economy with cross-market spillovers. A mix of naive and rational consumers may yield the worst outcomes.
410
This paper investigates stock market reaction to greenwashing by analyzing a new channel whereby companies change their names to green-related ones (i.e., names that evoke green and sustainable sentiments) to persuade the public that their activities are green. The findings reveal a striking positive stock price reaction to the announcement of corporate name changes to green-related names only for companies not involved in green activities at the time of the announcement. However, over an extended period of time, companies unrelated to green activities experience substantial negative abnormal returns if they fail to align their operational focus with the new name after the change.
409
How does group identity affect belief formation? To address this question, we conduct a series of online experiments with a representative sample of individuals in the US. Using the setting of the 2020 US presidential election, we find evidence of intergroup preference across three distinct components of the belief formation cycle: a biased prior belief, avoid-ance of outgroup information sources, and a belief-updating process that places greater (less) weight on prior (new) information. We further find that an intervention reducing the salience of information sources decreases outgroup information avoidance by 50%. In a social learn-ing context in wave 2, we find participants place 33% more weight on ingroup than outgroup guesses. Through two waves of interventions, we identify source utility as the mechanism driving group effects in belief formation. Our analyses indicate that our observed effects are driven by groupy participants who exhibit stable and consistent intergroup preferences in both allocation decisions and belief formation across all three waves. These results suggest that policymakers could reduce the salience of group and partisan identity associated with a policy to decrease outgroup information avoidance and increase policy uptake.
408
Standard applications of the consumption-based asset pricing model assume that goods and services within the nondurable consumption bundle are substitutes. We estimate substitution elasticities between different consumption bundles and show that households cannot substitute energy consumption by consumption of other nondurables. As a consequence, energy consumption affects the pricing function as a separate factor. Variation in energy consumption betas explains a large part of the premia related to value, investment, and operating profitability. For example, value stocks are typically more energy-intensive than growth stocks and thus riskier, since they suffer more from the oil supply shocks that also affect households.
407
A novel spatial autoregressive model for panel data is introduced, which incor-porates multilayer networks and accounts for time-varying relationships. Moreover, the proposed approach allows the structural variance to evolve smoothly over time and enables the analysis of shock propagation in terms of time-varying spillover effects.
The framework is applied to analyse the dynamics of international relationships among the G7 economies and their impact on stock market returns and volatilities. The findings underscore the substantial impact of cooperative interactions and highlight discernible disparities in network exposure across G7 nations, along with nuanced patterns in direct and indirect spillover effects.
406
Investors' return expectations are pivotal in stock markets, but the reasoning behind these expectations remains a black box for economists. This paper sheds light on economic agents' mental models -- their subjective understanding -- of the stock market, drawing on surveys with the US general population, US retail investors, US financial professionals, and academic experts. Respondents make return forecasts in scenarios describing stale news about the future earnings streams of companies, and we collect rich data on respondents' reasoning. We document three main results. First, inference from stale news is rare among academic experts but common among households and financial professionals, who believe that stale good news lead to persistently higher expected returns in the future. Second, while experts refer to the notion of market efficiency to explain their forecasts, households and financial professionals reveal a neglect of equilibrium forces. They naively equate higher future earnings with higher future returns, neglecting the offsetting effect of endogenous price adjustments. Third, a series of experimental interventions demonstrate that these naive forecasts do not result from inattention to trading or price responses but reflect a gap in respondents' mental models -- a fundamental unfamiliarity with the concept of equilibrium.
405
Shallow meritocracy
(2023)
Meritocracies aspire to reward hard work and promise not to judge individuals by the circumstances into which they were born. However, circumstances often shape the choice to work hard. I show that people's merit judgments are "shallow" and insensitive to this effect. They hold others responsible for their choices, even if these choices have been shaped by unequal circumstances. In an experiment, US participants judge how much money workers deserve for the effort they exert. Unequal circumstances disadvantage some workers and discourage them from working hard. Nonetheless, participants reward the effort of disadvantaged and advantaged workers identically, regardless of the circumstances under which choices are made. For some participants, this reflects their fundamental view regarding fair rewards. For others, the neglect results from the uncertain counterfactual. They understand that circumstances shape choices but do not correct for this because the counterfactual—what would have happened under equal circumstances—remains uncertain.
403
Measuring and reducing energy consumption constitutes a crucial concern in public policies aimed at mitigating global warming. The real estate sector faces the challenge of enhancing building efficiency, where insights from experts play a pivotal role in the evaluation process. This research employs a machine learning approach to analyze expert opinions, seeking to extract the key determinants influencing potential residential building efficiency and establishing an efficient prediction framework. The study leverages open Energy Performance Certificate databases from two countries with distinct latitudes, namely the UK and Italy, to investigate whether enhancing energy efficiency necessitates different intervention approaches. The findings reveal the existence of non-linear relationships between efficiency and building characteristics, which cannot be captured by conventional linear modeling frameworks. By offering insights into the determinants of residential building efficiency, this study provides guidance to policymakers and stakeholders in formulating effective and sustainable strategies for energy efficiency improvement.
401
In current discussions on large language models (LLMs) such as GPT, understanding their ability to emulate facets of human intelligence stands central. Using behavioral economic paradigms and structural models, we investigate GPT’s cooperativeness in human interactions and assess its rational goal-oriented behavior. We discover that GPT cooperates more than humans and has overly optimistic expectations about human cooperation. Intriguingly, additional analyses reveal that GPT’s behavior isn’t random; it displays a level of goal-oriented rationality surpassing human counterparts. Our findings suggest that GPT hyper-rationally aims to maximize social welfare, coupled with a strive of self-preservation. Methodologically, our esearch highlights how structural models, typically employed to decipher human behavior, can illuminate the rationality and goal-orientation of LLMs. This opens a compelling path for future research into the intricate rationality of sophisticated, yet enigmatic artificial agents.
402
A key solution for public good provision is the voluntary formation of institutions that commit players to cooperate. Such institutions generate inequality if some players decide not to participate but cannot be excluded from cooperation benefits. Prior research with small groups emphasizes the role of fairness concerns with positive effects on cooperation. We show that effects do not generalize to larger groups: if group size increases, groups are less willing to form institutions generating inequality. In contrast to smaller groups, however, this does not increase the number of participating players, thereby limiting the positive impact of institution formation on cooperation.