scholarly journals Sovereign Debt Restructurings: Delays in Renegotiations and Risk Averse Creditors

2020 ◽  
Vol 18 (5) ◽  
pp. 2394-2440 ◽  
Author(s):  
Tamon Asonuma ◽  
Hyungseok Joo
Keyword(s):  
Quantitative Analysis ◽  
Theoretical Model ◽  
Business Cycles ◽  
Sovereign Debt ◽  
Gdp Growth ◽  
Risk Averse ◽  
Stylized Facts ◽  
Theoretical Predictions ◽  
Financial Cycles

Abstract Foreign creditors’ business cycles influence both the process and the outcome of sovereign debt restructurings. We compile two datasets on creditor committees and chairs and on creditor business and financial cycles at the restructurings. We find that when creditors experience high GDP growth, restructurings are delayed and settled with smaller haircuts. To rationalize these stylized facts, we develop a theoretical model of sovereign debt with multiround renegotiations between a risk averse sovereign debtor and a risk averse creditor. The quantitative analysis of the model shows that high creditor income results in both longer delays in renegotiations and smaller haircuts. Our theoretical predictions are supported by data.

scholarly journals Consumption Responses to In-Kind Transfers: Evidence from the Introduction of the Food Stamp Program

2009 ◽  
Vol 1 (4) ◽  
pp. 109-139 ◽  
Author(s):  
Hilary W Hoynes ◽  
Diane Whitmore Schanzenbach
Keyword(s):  
Theoretical Model ◽  
Empirical Work ◽  
Food Stamps ◽  
Cash Income ◽  
Food Stamp Program ◽  
Difference In Difference ◽  
Food Expenditures ◽  
Theoretical Predictions ◽  
Difference Methods ◽  
The Impact

Economists have strong theoretical predictions about how in-kind transfers, such as providing vouchers for food, impact consumption. Despite the prominence of the theory, there is little empirical work on responses to in-kind transfers, and most existing work fails to support the canonical theoretical model. We employ difference-in-difference methods to estimate the impact of program introduction on food spending. Consistent with predictions, we find that food stamps reduce out-of-pocket food spending and increase overall food expenditures. We also find that households are inframarginal and respond similarly to one dollar in cash income and one dollar in food stamps. (JEL D12, H23, I38)

A clinical study which relates to a theoretical simulation of the glucose transport in the human placenta under various diabetic conditions

2016 ◽  
Vol 44 (4) ◽  
Author(s):  
Efrath Barta ◽  
Arieh Drugan
Keyword(s):  
Clinical Study ◽  
Theoretical Model ◽  
Gestational Diabetes ◽  
Human Placenta ◽  
Major Effect ◽  
Fetal Weight ◽  
Blood Levels ◽  
Theoretical Simulation ◽  
Theoretical Predictions ◽  
Glucose Supply

AbstractTo characterize placental glucose delivery under normoglycemic conditions, gestational and pre-gestational diabetes and to relate the clinical data to theoretical predictions.Data from 125 pregnancies: 50 normal gestations and 75 ones with various types of diabetes were collected. In parallel, we formulated a theoretical model for the transport of glucose under various diabetic conditions. Measured glucose blood levels were fed into the theoretical model that predicts glucose supply to the fetus and the results were confronted with measured fetal weights.Measured fetal weight and computed glucose delivery in gestational diabetic parturients resemble the situation in normal pregnancies. However, pre-gestational diabetes has a major effect as it involves heavier fetuses and enhanced computed glucose fluxesFetal weight (increased in pre-gestational and unaltered in gestational diabetes) correlates with the predicted rate of glucose delivery through the placenta.

Chasing Diamonds and Crowns: Consumer Limited Attention and Seller Response

2021 ◽  
Author(s):  
Zemin (Zachary) Zhong
Keyword(s):  
Theoretical Model ◽  
Regression Discontinuity ◽  
Limited Attention ◽  
Supply Side ◽  
Demand Side ◽  
Demand Shock ◽  
Online Platforms ◽  
Theoretical Predictions ◽  
Shaped Pattern ◽  
Sales Increase

Online platforms often assign sellers summary symbols based on whether their ratings pass certain thresholds. Consumers may focus on the symbols and pay limited attention to the ratings. This bias leads to discontinuously increased demand at the thresholds. I use a theoretical model to illustrate that sellers will lower the prices before their ratings reach the thresholds and increase their prices afterward due to the positive demand shock. I collect data from Taobao to test the theoretical predictions. Using regression discontinuity, I find that on the demand side, the hourly sales increase significantly when a seller passes the threshold, even conditional on the same item. On the supply side, the prices indeed exhibit a V-shaped pattern with respect to the ratings. Furthermore, sellers preemptively increase prices shortly before reaching thresholds, supporting the theoretical predictions. This paper was accepted by Juanjuan Zhang, marketing.

Microfinance Games

2010 ◽  
Vol 2 (3) ◽  
pp. 60-95 ◽  
Author(s):  
Xavier Giné ◽  
Pamela Jakiela ◽  
Dean Karlan ◽  
Jonathan Morduch
Keyword(s):  
Experimental Economics ◽  
Risk Taking ◽  
Free Riding ◽  
Risk Averse ◽  
Group Lending ◽  
Dynamic Incentives ◽  
Theoretical Predictions ◽  
Experimental Games

Microfinance banks use group-based lending contracts to strengthen borrowers' incentives for diligence, but the contracts are vulnerable to free-riding and collusion. We systematically unpack microfinance mechanisms through ten experimental games played in an experimental economics laboratory in urban Peru. Risk-taking broadly conforms to theoretical predictions, with dynamic incentives strongly reducing risk-taking even without group-based mechanisms. Group lending increases risk-taking, especially for risk-averse borrowers, but this is moderated when borrowers form their own groups. Group contracts benefit borrowers by creating implicit insurance against investment losses, but the costs are borne by other borrowers, especially the most risk averse. (JEL D82, G21, G31, O16)

Capital Reallocation

2018 ◽  
Vol 10 (1) ◽  
pp. 361-386 ◽  
Author(s):  
Andrea L. Eisfeldt ◽  
Yu Shi
Keyword(s):  
United States ◽  
Business Cycles ◽  
Financial Frictions ◽  
The United States ◽  
Future Research ◽  
Aggregate Productivity ◽  
Stylized Facts ◽  
Resource Misallocation ◽  
Capital Reallocation

Capital reallocation is procyclical, despite measured productive reallocative opportunities being acyclical or even countercyclical. This article reviews the advances in the literature studying the causes and consequences of capital reallocation (or lack thereof). We provide a comprehensive set of stylized facts about capital reallocation for the United States and an illustrative model of capital reallocation in equilibrium. We relate capital reallocation to the broader literatures on business cycles with financial frictions and on resource misallocation and aggregate productivity. Throughout, we provide directions for future research.

Advanced Telematics for Travel Decisions: A Quantitative Analysis of the Stopwatch Project in Southampton

1997 ◽  
Vol 29 (6) ◽  
pp. 1003-1016 ◽  
Author(s):  
H Ouwersloot ◽  
P Nijkamp ◽  
G Pepping
Keyword(s):  
Quantitative Analysis ◽  
Theoretical Model ◽  
Cost Minimization ◽  
Information Service ◽  
Uncertainty Reduction ◽  
Two Samples ◽  
Before And After ◽  
Travel Decisions ◽  
Reduction Of Uncertainty ◽  
New System

The effect of telematics technology on public transport use is analyzed on the basis of a theoretical model. Two possible mechanisms (reduction of uncertainty and a better choice of bus options, based on a general cost-minimization assumption) that may stimulate bus use are distinguished. The model is empirically tested by using microdata from the Southampton Stopwatch telematics project, which were collected both before and after the introduction of this telematics information service. The estimation of the model leads to interesting findings in explaining (anticipated) increases in bus use, for both the before and the after survey. It is shown that uncertainty reduction is the more important effect of the new system. Differences in the before and after data are found concerning the increase in bus use, but the explanatory model proves consistent over the two samples.

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