Investment Decisions by Individuals and Groups in `Sunk Cost' Situations: The Potential Impact of Shared Representations

In the wake of the financial crisis of 2007-2008, Basel III recommended that bank regulators include changes in the fair value of available-for-sale (AFS) debt securities in Tier 1 capital. However, the U.S. implementation allowed smaller banks to continue excluding these changes through a one-time opt out election. This paper investigates a potential impact of this opt out provision by examining the investment decisions of smaller banks in the 1990's when changes in the fair value of AFS debt securities were temporarily included in regulatory capital. Using a sample of smaller banks and a difference-in-differences research design, we find that low-capitalized banks reduced their investments in more volatile asset classes (e.g., corporate bonds, non-agency MBS) and increased their investments in less volatile asset classes (e.g., treasuries and municipal bonds) after changes in fair value were included in regulatory capital. These findings suggest that providing smaller banks with an opt out election potentially allows low-capitalized, riskier banks to continue to hold more volatile securities in their AFS portfolios.

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Production and Investment Decisions Under Sunk Cost and Temporal Uncertainty

American Journal of Agricultural Economics ◽

10.2307/1243926 ◽

1994 ◽

Vol 76 (1) ◽

pp. 114-127 ◽

Cited By ~ 37

Author(s):

Jean‐Paul Chavas

Keyword(s):

Investment Decisions ◽

Temporal Uncertainty ◽

Sunk Cost

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A Study on the Difference between Investment Decisions by Experienced Investors and Inexperienced Investors: A Focus on the Sunk Cost Effect

The Journal of Eurasian Studies ◽

10.31203/aepa.2010.7.3.006 ◽

2010 ◽

Vol 7 (3) ◽

pp. 99-112

Author(s):

곽준식 ◽

문재영

Keyword(s):

Investment Decisions ◽

Sunk Cost ◽

Sunk Cost Effect ◽

The Difference ◽

Cost Effect

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Changes in Electricity Load Profiles Under COVID-19: Implications of “The New Normal” for Electricity Demand

10.31224/osf.io/trs57 ◽

2020 ◽

Author(s):

Casey Burleyson ◽

Amanda D. Smith ◽

Jennie S. Rice ◽

Nathalie Voisin ◽

Aowabin Rahman

Keyword(s):

Structural Changes ◽

Electricity Consumption ◽

Investment Decisions ◽

Total Load ◽

Electricity Use ◽

Consumption Data ◽

Electricity Load ◽

Potential Impact ◽

Grid Operators

Shelter-in-place orders and school and business closures related to COVID-19 have changed the hourly profile of electricity loads in the U.S. Such shifts have significant implications for utilities and grid operators, affecting operational efficiency as well as investment decisions. It is critical to understand if and how these changes may persist as economies gradually reopen. Using 2 years of observed electricity consumption data from more than 3.8 million residential and non-residential customers from the Commonwealth Edison utility in Illinois, we show that the onset of COVID-19 shifted weekday residential load profiles to closely resemble weekend profiles from previous years. We use this finding to estimate the potential impact of continued COVID-19-type profiles of electricity use on total load profiles. We find that long-term structural changes to the workplace like widespread teleworking could lead to 5-7% higher spring and summertime peak hourly loads occurring up to 2.5 hours earlier.

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Effects of Gender, Parental Role, and Time on Infant- and Adult-Directed Read and Spontaneous Speech

Journal of Speech Language and Hearing Research ◽

10.1044/2019_jslhr-s-19-0047 ◽

2019 ◽

Vol 62 (11) ◽

pp. 4001-4014

Author(s):

Melanie Weirich ◽

Adrian Simpson

Keyword(s):

Parental Involvement ◽

Gender Identity ◽

Spontaneous Speech ◽

First Year ◽

Space Size ◽

Vowel Space ◽

Potential Impact ◽

Phonetic Features ◽

And Gender ◽

Description Task

Purpose The study sets out to investigate inter- and intraspeaker variation in German infant-directed speech (IDS) and considers the potential impact that the factors gender, parental involvement, and speech material (read vs. spontaneous speech) may have. In addition, we analyze data from 3 time points prior to and after the birth of the child to examine potential changes in the features of IDS and, particularly also, of adult-directed speech (ADS). Here, the gender identity of a speaker is considered as an additional factor. Method IDS and ADS data from 34 participants (15 mothers, 19 fathers) is gathered by means of a reading and a picture description task. For IDS, 2 recordings were made when the baby was approximately 6 and 9 months old, respectively. For ADS, an additional recording was made before the baby was born. Phonetic analyses comprise mean fundamental frequency (f0), variation in f0, the 1st 2 formants measured in /i: ɛ a u:/, and the vowel space size. Moreover, social and behavioral data were gathered regarding parental involvement and gender identity. Results German IDS is characterized by an increase in mean f0, a larger variation in f0, vowel- and formant-specific differences, and a larger acoustic vowel space. No effect of gender or parental involvement was found. Also, the phonetic features of IDS were found in both spontaneous and read speech. Regarding ADS, changes in vowel space size in some of the fathers and in mean f0 in mothers were found. Conclusion Phonetic features of German IDS are robust with respect to the factors gender, parental involvement, speech material (read vs. spontaneous speech), and time. Some phonetic features of ADS changed within the child's first year depending on gender and parental involvement/gender identity. Thus, further research on IDS needs to address also potential changes in ADS.

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Exploring the Potential Impact of Sentence-Level Comprehension and Sentence-Level Fluency on Deaf Students' Passage Comprehension

Journal of Speech Language and Hearing Research ◽

10.1044/2020_jslhr-19-00205 ◽

2020 ◽

Vol 63 (7) ◽

pp. 2281-2292

Author(s):

Ying Zhao ◽

Xinchun Wu ◽

Hongjun Chen ◽

Peng Sun ◽

Ruibo Xie ◽

...

Keyword(s):

Independent Predictor ◽

Vocabulary Knowledge ◽

Group Differences ◽

Regression Analyses ◽

Deaf Students ◽

Mediating Role ◽

Sentence Level ◽

Mediating Mechanisms ◽

Potential Impact ◽

The Relationship

Purpose This exploratory study aimed to investigate the potential impact of sentence-level comprehension and sentence-level fluency on passage comprehension of deaf students in elementary school. Method A total of 159 deaf students, 65 students ( M age = 13.46 years) in Grades 3 and 4 and 94 students ( M age = 14.95 years) in Grades 5 and 6, were assessed for nonverbal intelligence, vocabulary knowledge, sentence-level comprehension, sentence-level fluency, and passage comprehension. Group differences were examined using t tests, whereas the predictive and mediating mechanisms were examined using regression modeling. Results The regression analyses showed that the effect of sentence-level comprehension on passage comprehension was not significant, whereas sentence-level fluency was an independent predictor in Grades 3–4. Sentence-level comprehension and fluency contributed significant variance to passage comprehension in Grades 5–6. Sentence-level fluency fully mediated the influence of sentence-level comprehension on passage comprehension in Grades 3–4, playing a partial mediating role in Grades 5–6. Conclusions The relative contributions of sentence-level comprehension and fluency to deaf students' passage comprehension varied, and sentence-level fluency mediated the relationship between sentence-level comprehension and passage comprehension.

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