Recursos de colección

DSpace at MIT (104.280 recursos)

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Economics - Master's degree

Mostrando recursos 1 - 20 de 21

  1. Growing Pains in financial development : institutional weakness and investment efficiency

    Green, Daniel (Daniel Weiss); Liu, Ernest Siyuan
    There is little evidence that the expansion of microfinance has reduced poverty, but is instead increasingly associated with problematic multiple borrowing at high interest rates and high levels of debt and default. We develop a model that rationalizes these outcomes-if entrepreneurs cannot commit to exclusive borrowing from a single lender, expanding financial access by introducing multiple lenders may severely backfire. Capital allocation is distorted away from the most productive uses. Entrepreneurs choose inefficient and limited-growth endeavors. These problems are exacerbated when borrowers have access to more lenders, explaining why increased access to finance does not always improve outcomes.

  2. Private information and price regulation In the US credit card market

    Nelson, Scott Thomas
    Lenders typically learn new information about their borrowers over time but can be restricted from repricing debt in response to this information. I study a leading example of such re-pricing restrictions, the 2009 Credit CARD Act, to ask how such restrictions affect credit market efficiency. Using a near-universe of US consumer credit card account data as well as a large random sample of US consumer credit reports, I show evidence that the Act's restrictions had two competing effects: on the one hand, a decoupling between prices and default risk on existing loans over time, which engenders adverse selection through higher...

  3. Supply response to consumer inertia : strategic pricing in Medicare Part D

    Wu, Yufei, Ph. D. Massachusetts Institute of Technology
    A growing literature has documented evidence that consumers in health insurance markets are inertial, or behave as though they face substantial switching costs in choosing a health insurance plan. I investigate whether the private firms that provide prescription drug insurance through Medicare Part D exploit this inertia when setting prices. I first document descriptive evidence consistent with insurers initially setting low prices in order to "invest" in future demand before later raising prices to "harvest" inertial consumers. I then apply a two-step estimation approach following Bajari, Benkard and Levin (2007) to explore the implications of these invest and harvest incentives...

  4. Counting votes right : strategic voters versus strategic parties

    Reggiani, Giovanni; Mezzanotti, Filippo
    This thesis, joint with F. Mezzanotti, provides a lower bound for the extent of strategic voting. Voters are strategic if they switch their vote from their favorite candidate to one of the main contenders in a tossup election. High levels of strategic voting are a concern for the representativity of democracy and the allocation efficiency of government goods and services. Recent work in economics has estimated that up to 80% of voters are strategic. We use a clean quasi experiment to highlight the shortcomings of previous identification strategies, which fail to fully account for the strategic behavior of parties. In...

  5. Labor risk sharing

    Manuelli, Lucas
    In this paper we aim to test the extent of labor risk sharing exists in thai village economies. Specifically we test the null hypothesis of full risk sharing at the village level. We outline a simple planner's problem that motivates our empirical specification. Our empirical specification consists of two equations, a labor supply equation that determines how many hours you work conditional on participating in the labor market, and a selection equation which determines the probability of working positive hours. Our empirical specification allows for fixed effects that correspond to different Pareto weights for the agents. Our dataset, an unusually...

  6. Predicting minimum savings in Thai villages

    Sripakdeevong, Parit
    Amador Werning Angeletos (2006) characterize the conditions under which optimal saving/ consumption decision are determined by a minimum savings policy. I test this model empirically against data from the Townsend Thai Monthly Survey. Each household's income distribution, measure of risk aversion. and hyperbolic discount rate are estimated and then inputted into the model. In the overall sample., the minimum saving value as predicted by the model does register a statistically signficant relationship with the actual amount saved by the household. This is expected. since minimum saving policy is not optimal for all households. Limiting the sample to the appopriate subgroup...

  7. The spatial clustering of occupations

    Swift, Henry Spencer
    Workers in similar occupations cluster, much like firms in similar industries. This may be due to firm clustering, but I propose a supply-side mechanism that may also provide an explanation. When workers face a risk of separation from a particular job, they will consider the other jobs available in a particular area in their location decision. Based on this theory I make three predictions. Workers will tend to cluster in areas where their skills are in high demand. They will be paid less in these areas, ceteris paribus. And demand shocks will affect workers' wages less, and employment more, in...

  8. Yardstick Competition : an empirical investigation using state taxes and media markets

    Johnson, Lynn Christine, 1976-
    I investigate whether voters judge the performance of their governor on taxes by comparing him to governors from neighboring states. If voters do make these comparisons, it creates "yardstick competition," where governors are competing with each other as they set taxes. Previous research has shown that governors are punished at the ballot box for raising taxes. However, Besley and Case (AER 1995) find that if governors in neighboring states have also raised taxes the voters are more forgiving. Besley and Case speculate that voters know what is happening in other states through the media. My hypothesis is that if yardstick...

  9. Panel data models with nonadditive unobserved heterogeneity : estimation and inference

    Lee, Joonhwan; Fernández-Val, Iván
    This paper considers fixed effects estimation and inference in linear and nonlinear panel data models with random coefficients and endogenous regressors. The quantities of interest - means, variances, and other moments of the random coefficients - are estimated by cross sectional sample moments of GMM estimators applied separately to the time series of each individual. To deal with the incidental parameter problem introduced by the noise of the within-individual estimators in short panels, we develop bias corrections. These corrections are based on higher-order asymptotic expansions of the GMM estimators and produce improved point and interval estimates in moderately long panels....

  10. The dynamics of growth and economic analysis of nuclear power generating industries based on plutonium converter and breeder reactors

    Kotecha, Subhash-Chandra (Subhash-Chandra Hiralal)
    by Subhash-Chandra Kotecha.

  11. Optimal intertemporal decisions in imperfect capital markets

    Cardenas, Ruben Ojeda
    Optimal intertemporal investment solution paths are derived for both, firms operating in perfect financial markets and those facing credit constraints, due to imperfect capital markets. However, as in these markets, saving and investment decision may not be separable, we obtain the optimal dynamic path of these decisions for agents that own capital but do not have any access to credit and extend the analysis when these agents have some access to credit but yet face credit constraints from financial intermediaries. We next consider agents without physical capital and who derived their income from wages and/or financial assets. We study their...

  12. On testing the Tradeoff Theory of capital structure with real options

    Shore, William T., S.M. (William Thomas). Massachusetts Institute of Technology
    We explain often anomalous results of capital structure tests by infusing tradeoff theory with real options. Of course one can explain almost everything using a soft qualitative theory. This paper's addition is to use a quantitative approach to generate tradeoff theory predictions for firms with valuable real options. We are able to explain many of the results of Rajan and Zingales (1995), Welch (2004), and Flannery and Rangan (2006).

  13. Innovation incentives and competition in the hard disk drive industry

    Wu, Xiaohua Sherry
    Firms in the hard disk drive industry are continually engaging in R & D and improving the quality of their products. We explore various determinants of the product innovation incentives for firms concerned with both their static and expected future profitability. We estimate the observed innovation outcomes as a function of market condition variables which have significant impact on innovation decisions. In addition, we estimate logit utilities that describe the marginal willingness to pay for quality improvements. One aspect of utility is that the willingness to pay for faster access time to data may be initially low but increases over...

  14. Empirical study of new Keynesian model using cointegrated VAR : what New Zealand data tell us

    Kim, Hae-min
    Econometric analysis of rational expectations models has been a widely studied topic in the macro-econometric literature. This thesis looks in particular at evaluating Neokeynesian model (NKM) with respect to its conformity with the data. Among the available econometric techniques, this thesis investigates what cointegrated VAR can illuminate about how close the NKM gets to the data. This project closely follow the approach taken by Mikael Juselius (2008) and extends the analysis to the New Zealand data. The findings from the thesis lend support to Juselius' conclusions but in a limited way. The results from this thesis question the robustness of...

  15. Variation in marginal tax rates around retirement and the return to saving in tax-favored accounts

    Bishop, Tonja Bowen
    Economists have generally assumed that to the extent possible, retirement savings should be done in a tax-deferred account. However, the advent of Roth-style tax-favored accounts and concerns about the tax implications of increasing retirement income through tax-deferred distributions indicate that this question merits a reevaluation. I use data on married couples in the HRS and NBER's TAXSIM model to measure the probability of a household facing a higher tax rate at ages 62, 65, and 69 than the household faced at age 57. When the marginal tax rate is higher, the household could decrease their lifetime tax by choosing a...

  16. Economic stabilization policies in Argentina during Menem's presidency (1989-1991)

    Contreras, Ernesto Jorge
    by Ernesto Jorge Contreras.

  17. Bombs and ballots : estimating the effect of the Madrid bombings on the March 2004 general elections in Spain

    Díez-Amigo, Sandro
    Whether or not the Madrid March 11th 2004 terrorist attacks affected the outcome of the Spanish general elections three days later has been the source of great controversy in the last years. This paper analyzes Spanish electoral data for the 2000 and 2004 Congressional elections, comparing the marginal effects of the proportion of voters who voted before the elections (and therefore, before the bombings in 2004) on the voting pattern in both years. A linear approach finds mild evidence that bombs undermined support for the incumbent conservative party and increased the share of the vote for the opposition socialists, similar...

  18. Economies of scale in the U.S. life insurance industry : an econometric analysis

    Daula, Thomas Vincent
    by Thomas V. Daula.

  19. The incidence of U.S. agricultural subsidies on farmland rental rates

    Kirwan, Barrett E., 1974-
    This paper identifies the effect of agricultural subsidies on farmland rental rates in the United States. Rental agreements are primarily between farmers and non-farmer landlords, but no evidence exists concerning the incidence of subsidies on these two groups. By exploiting a unique policy change in 1996 and a nationally representative dataset of individual farms, I solve the endogeneity problem with fixed effects and instrumental variables techniques. I show that non-farmer landlords capture forty percent of the marginal subsidy dollar per acre. This finding is in sharp contrast to the basic assumptions in the literature that suggest full incidence on the...

  20. An econometric analysis of an institutional forecasting model for U.S. Army enlistments

    Berner, J. Kevin (John Kevin)
    by J. Kevin Berner.

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