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Xue-Zhong He, and Nicolas Treich
vol. 70, May 2017, pp. 105–114
In this paper, we examine the properties of prediction market prices when risk averse traders have heterogeneous beliefs in state probabilities. We show that the equilibrium state prices equal the mean beliefs of traders about that state if and only if the traders’ common utility function is...
Matthew Adler, and Nicolas Treich
vol. 87, May 2017, pp. 94–102
We use a simple consumption model, the so-called cake eating model, to study the interaction of equity, time and risk in social decision making. Total consumption, the “cake,” is uncertain. The social planner allocates consumption between two agents (representing two generations), by assigning the...
Alessandro Bonatti, and Johannes Hörner
vol. 169, May 2017, pp. 234–269
We analyze strategic experimentation in which information arrives through fully revealing, publicly observable “breakdowns.” When actions are hidden, there exists a unique symmetric equilibrium that involves randomization over stopping times. With two players, this is the unique equilibrium....
Matthew Adler, David Anthoff, Valentina Bosetti, Greg Garner, Klaus Keller, and Nicolas Treich
May 2017, pp. 443–449
The social cost of carbon (SCC) is a key tool in climate policy. The SCC expresses in monetary terms the social impact of the emission of a ton of CO2 in a given year. The SCC is calculated using a ‘social welfare function’ (SWF): a method for assessing social welfare. The dominant SWF in climate...
Bastien Cabarrou, Patrick Sfumato, Loïc Mourey, Eve Leconte, Laurent Balardy, Jean-Pierre Delord, Jean Marie Boher, and Thomas Filleron
vol. 65, n. Supplément 2, May 2017
H.H. Bauschke, Jérôme Bolte, and Marc Teboulle
vol. 42, n. 2, May 2017, pp. 330–348
The proximal gradient and its variants is one of the most attractive first-order algorithm for minimizing the sum of two convex functions, with one being nonsmooth. However, it requires the differentiable part of the objective to have a Lipschitz continuous gradient, thus precluding its use in many...
Mohammad A. Alolayan, Jonhn S. Evans, and James K. Hammitt
vol. 66, n. 4, April 2017, pp. 629–646
We report stated-preference estimates of the value per statistical life (VSL) for Kuwaiti citizens obtained using an innovative test to identify respondents whose survey responses are consistent with economic theory. The consistency test requires that an individual report strictly positive...
Patrick Fève, and Jean-Guillaume Sahuc
vol. 32, n. 3, April 2017, pp. 704–718
This paper applies the DSGE-VAR methodology to assess the size of fiscal multipliers in the data and the relative contributions of two transmission mechanisms of government spending shocks, namely hand-to-mouth consumers and Edgeworth complementarity. Econometric experiments show that a DSGE model...
Emmanuelle Auriol, and Jean-Philippe Platteau
vol. 25, n. 2, April 2017, pp. 313–350
The relationship between religion and politics is explored from a theoretical standpoint. Religious clerics can be seduced by an autocrat and political stability is at stake. The autocrat's decisions consist of two measures susceptible of antagonising religious clerics: adopting secular reforms and...
Elena Panova
vol. 19, n. 2, April 2017, pp. 312–330
