A NOTE ON MONOTONE COMPARATIVE STATICS FOR MONETARY DIRECTED SEARCH MODELS

2019 ◽  
pp. 1-10 ◽  
Author(s):  
Michael Choi
Keyword(s):  
Money Demand ◽  
Comparative Statics ◽  
Directed Search ◽  
Matching Function ◽  
Market Outcomes ◽  
Monotone Comparative Statics ◽  
Search Models ◽  
Search Intensity ◽  
Monotone Methods ◽  
The Impact

This note uses monotone methods to derive two sets of comparative statics results for monetary directed search models. First, it characterizes the impact of a higher inflation rate or a higher cost of using credit on market outcomes, regardless of the choice of matching function. Second, the seller-to-buyer ratio, output level, and money demand increase as the matching function becomes more efficient in a log-supermodular sense. I also consider an extension with endogenous search intensity and show that search intensity and trade volume always decrease in the nominal interest rate.

scholarly journals Matching With Complementary Contracts

Econometrica ◽  
2020 ◽  
Vol 88 (5) ◽  
pp. 1793-1827 ◽  
Author(s):  
Marzena Rostek ◽  
Nathan Yoder
Keyword(s):  
Social Media ◽  
Comparative Statics ◽  
Design Decisions ◽  
Monotone Comparative Statics ◽  
Patent Pools ◽  
Multilateral Agreements ◽  
Deferred Acceptance Algorithm ◽  
Social Media Platforms ◽  
Deferred Acceptance ◽  
The Impact

In this paper, we show that stable outcomes exist in matching environments with complementarities, such as social media platforms or markets for patent licenses. Our results apply to both nontransferable and transferable utility settings, and allow for multilateral agreements and those with externalities. In particular, we show that stable outcomes in these settings are characterized by the largest fixed point of a monotone operator, and so can be found using an algorithm; in the nontransferable utility case, this is a one‐sided deferred acceptance algorithm, rather than a Gale–Shapley algorithm. We also give a monotone comparative statics result as well as a comparative static on the effect of bundling contracts together. These illustrate the impact of design decisions, such as increased privacy protections on social media, or the use of antitrust law to disallow patent pools, on stable outcomes.

News and Idiosyncratic Volatility: The Public Information Processing Hypothesis*

2020 ◽  
Author(s):  
Robert F Engle ◽  
Martin Klint Hansen ◽  
Ahmet K Karagozoglu ◽  
Asger Lunde
Keyword(s):  
Information Processing ◽  
Public Information ◽  
Selection Procedure ◽  
Autoregressive Process ◽  
Return Volatility ◽  
Market Outcomes ◽  
The Public ◽  
Additional Information ◽  
Financial News ◽  
The Impact

Abstract Motivated by the recent availability of extensive electronic news databases and advent of new empirical methods, there has been renewed interest in investigating the impact of financial news on market outcomes for individual stocks. We develop the information processing hypothesis of return volatility to investigate the relation between firm-specific news and volatility. We propose a novel dynamic econometric specification and test it using time series regressions employing a machine learning model selection procedure. Our empirical results are based on a comprehensive dataset comprised of more than 3 million news items for a sample of 28 large U.S. companies. Our proposed econometric specification for firm-specific return volatility is a simple mixture model with two components: public information and private processing of public information. The public information processing component is defined by the contemporaneous relation with public information and volatility, while the private processing of public information component is specified as a general autoregressive process corresponding to the sequential price discovery mechanism of investors as additional information, previously not publicly available, is generated and incorporated into prices. Our results show that changes in return volatility are related to public information arrival and that including indicators of public information arrival explains on average 26% (9–65%) of changes in firm-specific return volatility.

Labour Market Returns to Graduates’ International Experience: Exploring Cross-Country Variation in Europe

2019 ◽  
Vol 35 (4) ◽  
pp. 491-505 ◽  
Author(s):  
Marita Jacob ◽  
Michael Kühhirt ◽  
Margarida Rodrigues
Keyword(s):  
Labour Market ◽  
Intercultural Competence ◽  
International Experience ◽  
Market Returns ◽  
Market Outcomes ◽  
Studying Abroad ◽  
Early Labour ◽  
Labour Market Outcomes ◽  
Graduate Unemployment ◽  
The Impact

AbstractThe potential benefits of increased international experience abound, ranging from enriching cultural understanding to an improvement of language skills and intercultural competence. At the same time, empirical evidence is mixed, particularly with regards to how well international experience translates into individual returns on the labour market. This article examines the association between studying abroad and early labour market outcomes in a comparative perspective aiming to shed light on why labour market returns differ across countries. We expect labour market returns to vary with specific country characteristics such as demand for international experience and competition among graduates at labour market entry. In our empirical analyses, we use data from 13 European countries that provide information on graduates’ early labour market outcomes. We find a large variation in the impact of studying abroad on both wages and attaining a higher service class position. Generally, the labour market returns to international experience are larger in countries in Eastern and Southern Europe with poorer university quality, higher graduate unemployment, and fewer students abroad.

scholarly journals The Impact of the Minimum Wage on Male and Female Employment and Earnings in India

2017 ◽  
Vol 34 (1) ◽  
pp. 28-64 ◽  
Author(s):  
Nidhiya Menon ◽  
Yana van der Meulen Rodgers
Keyword(s):  
Minimum Wage ◽  
Cross Sections ◽  
Urban Areas ◽  
Wage Gap ◽  
National Sample ◽  
Female Employment ◽  
Sample Survey ◽  
Market Outcomes ◽  
Wage Rates ◽  
The Impact

This study examines how employment and wages for men and women respond to changes in the minimum wage in India, a country known for its extensive system of minimum wage regulations across states and industries. Using repeated cross sections of India's National Sample Survey Organization employment survey data for the period 1983–2008 merged with a newly created database of minimum wage rates, we find that, regardless of gender, minimum wages in urban areas have little to no impact on labor market outcomes. However, minimum wage rates increase earnings in the rural sector, especially for men, without any employment losses. Minimum wage rates also increase the residual gender wage gap, which may be explained by weaker compliance among firms that hire female workers.

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