Additivity in bankruptcy problems and in allocation problems

We study the property of additivity in bankruptcy problems and in allocation problems. In bankruptcy problems we use this property to characterize the Talmudic rule proposed by Rabbi Ibn Ezra. Moreover we generalize this rule to every bankruptcy problem. Again, using additivity we characterize the rights egalitarian solution in allocation problems.     

Inflation targeting credibility and reputation: The consequences for the interest rate

The measurement of credibility and reputation is fundamental for the analysis of countries which adopted inflation targeting. Under this perspective, the objective of this article is to illustrate which measures of credibility and reputation are most useful in predicting variations of interest rates. Given a specific inflation target, this relationship is valuable for central bankers as well as for private agents trying to predict the central bank's policies. Due to the fact that Brazil represents a potential laboratory experiment in which the effects of an adoption of inflation targeting after more than a half decade can be observed, an analysis through several indices and its relation with the basic interest rate is made. The findings denote that the credibility indices based on reputation represent an alternative in the cases where the series of inflation expectation are not available. Furthermore, the empirical evidence confirms the hypothesis that higher credibility implies lower variations in the interest rate for controlling inflation.     

Measuring and Understanding Productivity in UK Market Services

Many productivity studies, if they cover the service sector,commonly enter a caveat that the data are uncertain or justlook at manufacturing. This paper attempts to clarify what UKmarket-service-sector data are available, whether they shouldbe treated as inaccurate, and what conceptual problems mightmake measuring service-sector output so hard. Our overall conclusionis that most problems surround financial intermediation andbusiness services. In financial intermediation, national accountsconventions and adjustments make the output data very hard tointerpret. In business services many of the output measuresare employment based. Elsewhere, for example, retail and wholesaletrade, transport, and hotels and restaurants, the main problemis, in practice, lack of collected deflators. Footnotes ¹ E-mail addresses: g.a.crespi{at}sussex.ac.uk; chiara.criscuolo{at}ons.gsi.gov.uk;j.e.haskel{at}qmul.ac.uk; d.hawkes{at}ioe.ac.uk     

The relative contributions of private information sharing and public information releases to information aggregation

We calculate learning rates when agents are informed through public and private observation of other agents' actions. We characterize the evolution of the distribution of posterior beliefs. If the private learning channel is present, convergence of the distribution of beliefs to the perfect-information limit is exponential at a rate equal to the sum of the mean arrival rate of public information and the mean rate at which individual agents are randomly matched with other agents. If, however, there is no private information sharing, then convergence is exponential at a rate strictly lower than the mean arrival rate of public information.     

Wasted Positive Intentions: The Role of Affection and Abundance on Household Food Waste

This qualitative study, grounded theory oriented, identifies familial affection and preference for abundance as major drivers of wasted food in lower-middle income American families. These positive intentions provide an improved understanding of household food waste, a problem with high environmental impact and moral implications. Based on empirical data collected with twenty caregivers via in-depth interviews, observations, and analysis of photos, this study provides novel explanations, such as on how stockpiling comfort foods in abundance – a form of both boosting positive self-emotions and showing affection for kids – can promote more wasted food. Other antecedents identified include multiplicity of choices, convenience, procrastination and unplanned routines. In sum, this research identifies a negative outcome of affection and food abundance in the family context, while providing a theoretically relevant general framework to help understand the food waste phenomenon. Authors suggest increasing the awareness of nutritional gatekeepers through behavioral economics principles.     

A characterization of optimistic weighted Shapley rules in minimum cost spanning tree problems

In this paper we present an axiomatic characterization of the weighted Shapley value of the optimistic TU game associated with a minimum cost spanning tree problem. This characterization is based on two monotonicity properties, population monotonicity (if a new agent joint the society nobody is worse off) and the strong cost monotonicity (if the connection cost between any pair of agents increases nobody is better off), and weighted share of extra costs (the extra costs should be divided proportionally to the weights of the agents).      

From scratch to efficiency gains after a financial crisis? A tale of a restructured banking system

We study the efficiency of the Argentine banking system after the 2001–2002 crisis. The financial system had to be restructured from scratch and recovered jointly with the economy, but its productivity and average cost levels have been stagnant since 2007. The analysis includes efficiency frontier estimations for retail banks and a comparison of subsamples for different categories of banks for the period 2005–15. We try to determine whether public banks are more efficient than private ones, whether privatized are more efficient than always private, as well as national versus foreign entities. Our findings show a modest average efficiency of the system and quite similar efficiency rankings for the different groups of banks. On average, public tend to be slightly more cost efficient than private, and national are slightly more efficient than foreign.     

Stochastic vs. deterministic frontier distance output function: Evidence from Brazilian higher education institutions

Journal of Productivity Analysis - Using data from the Brazilian Higher Education Census and other public institutions, this study aims to obtain and compare efficiency scores from stochastic...     

Unfair inequality and growth*

Fighting against economic inequality is one fundamental social goal in the agendas of most governments. However, recent studies highlight that people actually prefer unequal societies, as they accept inequality generated by an individual's effort and wish to reduce only unfair inequality (generated by factors beyond an individual's control). This distinction might help to explain the fundamental unsolved question about whether inequality is good or bad for growth: unfair inequality (UI) could be growth-deterring, while fair inequality (FI) might be growth-enhancing. We derive a reduced-form growth equation from a stylized overlapping-generations model with human capital that includes FI, UI, and poverty. Then, using an instrumental variable approach, we show for alternative samples and inequality measures at the worldwide level that the estimated coefficient associated with UI is always negative, while the coefficient of total inequality increases when UI is included in the regression. Moreover, we find that poverty mediates this relationship because the higher the poverty rate, the smaller the impact of either type of inequality on growth.     

Deceitful when insecure: The effect of self-efficacy beliefs on the use of deception in negotiations

This article investigates if and how negotiators' self-efficacy beliefs affect their use of deception in negotiation. Specifically, we propose that self-efficacy can be interpreted as a threat to self-concept, which encourages individuals to temporarily bypass self-regulatory obstacles by morally disengaging their cognitive moral filters, thereby enabling them to use deception in negotiation. We test our hypotheses in three independent experimental studies involving an interactive negotiation simulation, totalizing 460 participants. We find that negotiators with low self-efficacy regarding their negotiation abilities are more likely to use deception than those with high self-efficacy beliefs. Furthermore, we find that moral disengagement mediates the effects of self-efficacy on deception. Our findings suggest that self-efficacy plays a key role in shaping negotiators' ethical behaviors and we identify the psychological mechanism underlying this relationship.