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Cultural and demographic energy system awareness and preference: Implications for future energy system design in the United States Energy Econ. (IF 7.042) Pub Date : 2022-06-23 Andrew Chapman, Yosuke Shigetomi, Shamal Chandra Karmaker, Bidyut Saha, Caleb Brooks
This research investigates the differences in awareness and preference of racial groups toward the types of energy that they would like to see incorporated into the future energy system. Based on a national survey of 3000 respondents conducted in 2020, we analyze the differences in awareness, preferences and attitudes among racial groups in the US, and how they will influence future energy system design
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Welfare gains from international trade and renewable energy demand: Evidence from the OECD countries Energy Econ. (IF 7.042) Pub Date : 2022-06-21 Zhou Lu, Giray Gozgor, Mantu Kumar Mahalik, Hemachandra Padhan, Cheng Yan
This paper uses a new measure of international trade, i.e. the international trade potential index, to measure the welfare gains from trade across countries. The measure is based on the import shares of countries in their gross domestic products. It is observed that gains from international trade are low in prosperous economies, but they are larger in poorer economies. Then, the paper investigates
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The power play of natural gas and crude oil in the move towards the financialization of the energy market Energy Econ. (IF 7.042) Pub Date : 2022-06-17 Syed Kumail Abbas Rizvi, Bushra Naqvi, Sabri Boubaker, Nawazish Mirza
The financialization of the energy market has capacitated energy commodities to affect economic activities unfathomably. Despite the availability of rich literature investigating crude oil and developing its strong ties with economic and financial stability and climate change, little attention has been paid to natural gas (NG or LNG) and its potential to affect economies. Natural gas is not merely
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Introduction to the special issue “EMF 36: Carbon pricing after Paris (CarPri)” Energy Econ. (IF 7.042) Pub Date : 2022-06-18 Christoph Böhringer, Sonja Peterson, John P. Weyant
Abstract not available
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Monetary policy rule, exchange rate regime, and fiscal policy cyclicality in a developing oil economy Energy Econ. (IF 7.042) Pub Date : 2022-06-17 Aliya Algozhina
According to Frankel and Catao (2011), a commodity-exporting developing economy is advised to target the product price rather than consumer price, as the former monetary policy is automatically countercyclical against the volatile terms of trade shock. This paper constructs a dynamic stochastic general equilibrium model of joint monetary and fiscal policies for a developing oil economy, to find an
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The impact of income on household solar panel uptake: Exploring diverse results using Australian data Energy Econ. (IF 7.042) Pub Date : 2022-06-14 Rohan Best, Andrea Chareunsy
Understanding mixed results for the impact of income on household solar-panel uptake is important for several reasons. Income is often a central feature of economic studies or a key control for social studies. Furthermore, policy makers are increasingly relying on income to determine solar-subsidy eligibility. We use a large sample of Australian households to suggest reasons for mixed results. For
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On index investing J. Financ. Econ. (IF 6.988) Pub Date : 2022-06-17 Jeffrey L. Coles, Davidson Heath, Matthew C. Ringgenberg
We empirically examine the effects of index investing using predictions derived from a Grossman-Stiglitz framework. An exogenous increase in index investing leads to lower information production as measured by Google searches, EDGAR views, and analyst reports, yet price informativeness remains unchanged. These findings are consistent with an equilibrium in which investors choose to gather private information
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Urban-regional disparities in mental health signals in Australia during the COVID-19 pandemic: a study via Twitter data and machine learning models Camb. J. Reg. Econ. Soc. (IF 8.3) Pub Date : 2022-06-18 Siqin Wang, Mengxi Zhang, Xiao Huang, Tao Hu, Zhenlong Li, Qian Chayn Sun, Yan Liu
This study establishes a novel empirical framework using machine learning techniques to measure the urban-regional disparity of the public’s mental health signals in Australia during the pandemic, and to examine the interrelationships amongst mental health, demographic and socioeconomic profiles of neighbourhoods, health risks and healthcare access. Our results show that the public’s mental health
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Refugee entrepreneurship: systematic and thematic analyses and a research agenda Small Bus. Econ. (IF 8.164) Pub Date : 2022-06-15 Solomon Akele Abebe
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Game on: Social networks and markets J. Financ. Econ. (IF 6.988) Pub Date : 2022-06-16 Lasse Heje Pedersen
I present closed-form solutions for prices, portfolios, and beliefs in a model where four types of investors trade assets over time: naive investors who learn via a social network, “fanatics” possibly spreading fake news, and rational short- and long-term investors. I show that fanatic and rational views dominate over time, and their relative importance depends on their following by influencers. Securities
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Trading on short-term path forecasts of intraday electricity prices Energy Econ. (IF 7.042) Pub Date : 2022-06-15 Tomasz Serafin, Grzegorz Marcjasz, Rafał Weron
We introduce a profitable trading strategy that can support decision-making in continuous intraday markets for electricity. It utilizes a novel forecasting framework, which generates prediction bands from a pool of path forecasts or approximates them using probabilistic price forecasts. The prediction bands then define a time-dependent price level that, when exceeded, indicates a good trading opportunity
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Sentiment and uncertainty J. Financ. Econ. (IF 6.988) Pub Date : 2022-06-14 Justin Birru, Trevor Young
Sentiment should exhibit its strongest effects on asset prices at times when valuations are most subjective. Accordingly, we show that a one-standard-deviation increase in aggregate uncertainty amplifies the predictive ability of sentiment for market returns by two to four times relative to when uncertainty is at its mean. For the cross-section of returns, the predictive ability of sentiment for assets
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Impacts and implications for the post-COVID city: the case of Toronto Camb. J. Reg. Econ. Soc. (IF 8.3) Pub Date : 2022-06-15 Shauna Brail, Mark Kleinman
Since the onset of COVID-19, scholars have questioned whether the pandemic will alter the fundamentals propelling the growth of global cities. Using a case study of Toronto, the paper examines and analyses changes impacting the city because of the pandemic, with a focus on work, mobility and housing. In assessing pandemic-related disruption, it outlines the experiences of the early phases of recovery
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The role of uncertainty measures in volatility forecasting of the crude oil futures market before and during the COVID-19 pandemic Energy Econ. (IF 7.042) Pub Date : 2022-06-15 Zibo Niu, Feng Ma, Hongwei Zhang
The purpose of this article is to investigate whether various uncertainty measures provide incremental information for the prediction the volatility of crude oil futures under high-frequency heterogeneous autoregressive (HAR) model specifications. Moreover, by considering the information overlap among various uncertainty measures and fully using of the information in various uncertainty measures, this
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Graduates of venture creation programs – where do they apply their entrepreneurial competencies? Small Bus. Econ. (IF 8.164) Pub Date : 2022-06-13 Gry Alsos, Gustav Hägg, Mats Lundqvist, Diamanto Politis, Martin Stockhaus, Karen Williams-Middleton, Kari Djupdal
Abstract The assessment of entrepreneurship education outcomes should move beyond a focus on firm creation and associated economic impact to consider a more nuanced view that pays attention to graduates and their entrepreneurial competencies. There is currently limited understanding to what extent entrepreneurial competencies developed through entrepreneurship education are applied in graduates’ subsequent
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Does foreign ownership promote environmental protection? Evidence from firm-level data Small Bus. Econ. (IF 8.164) Pub Date : 2022-06-13 Jacint Balaguer, Ana Cuadros, Jose García-Quevedo
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Back Cover Journal of Political Economy (IF 9.103) Pub Date : 2022-06-13
Journal of Political Economy, Volume 130, Issue 7, July 2022.
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Recent Referees Journal of Political Economy (IF 9.103) Pub Date : 2022-06-13
Journal of Political Economy, Volume 130, Issue 7, July 2022.
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JPE Turnaround Times Journal of Political Economy (IF 9.103) Pub Date : 2022-06-13
Journal of Political Economy, Volume 130, Issue 7, Page 1991-1991, July 2022.
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Front Matter Journal of Political Economy (IF 9.103) Pub Date : 2022-06-13
Journal of Political Economy, Volume 130, Issue 7, July 2022.
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Implications of clean energy, oil and emissions pricing for the GCC energy sector stock Energy Econ. (IF 7.042) Pub Date : 2022-06-14 Mohammed A. Alkathery, Kausik Chaudhuri, Muhammad Ali Nasir
In this study, we analyse the implications of clean energy, oil and emission prices for the energy sector stock in the GCC region. In so doing, we estimate one-day-ahead value at risk (VaR) and the expected shortfall (ES) for Saudi, Abu Dhabi and Kuwaiti energy stock prices over short and long trading positions using three different long memory Autoregressive conditional heteroskedasticity (ARCH)/
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Do airfares respond asymmetrically to fuel price changes? A multiple threshold nonlinear ARDL model Energy Econ. (IF 7.042) Pub Date : 2022-06-09 Debdatta Pal, Subrata K. Mitra
This paper elucidates, whether airfares respond asymmetrically to fuel price changes. Recent literature suggests conflicting evidence on whether airfares respond rapidly to the increase in fuel price than to the decrease. Using monthly U.S. data spreading over January 2000 to June 2019 and by employing a multiple threshold nonlinear autoregressive distributed lag model, this paper doesn't surface any
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Mobility, environment and inequalities in the post-COVID city Camb. J. Reg. Econ. Soc. (IF 8.3) Pub Date : 2022-06-13 Daniel Albalate, Germà Bel, Albert Gragera
The COVID-19 pandemic has brought about enormous disruption in mobility in cities. We review and analyse the evidence generated since the advent of the crisis, paying special attention to travel behaviour changes and how they are hampering the achievement of sustainability goals. Modal shifts to more individual modes of transport, with regained interest in car usage, combined with the financial distress
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Designing Incentives for Heterogeneous Researchers Journal of Political Economy (IF 9.103) Pub Date : 2022-06-10 Nathan Yoder
A principal (e.g., the US government) contracts with a researcher with unknown costs (e.g., a vaccine developer) to conduct a costly experiment. This contracting problem has a novel feature that captures the difference between the form of an experiment and the strength of its results: researchers face a problem of information design rather than optimal effort. Using a novel comparative static for Bayesian
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Instrumental Variable Identification of Dynamic Variance Decompositions Journal of Political Economy (IF 9.103) Pub Date : 2022-06-08 Mikkel Plagborg-Møller, Christian K. Wolf
Macroeconomists increasingly use external sources of exogenous variation for causal inference. However, unless such external instruments (proxies) capture the underlying shock without measurement error, existing methods are silent on the importance of that shock for macroeconomic fluctuations. We show that, in a general moving-average model with external instruments, variance decompositions for the
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Green bonds and implied volatilities: Dynamic causality, spillovers, and implications for portfolio management Energy Econ. (IF 7.042) Pub Date : 2022-06-08 Linh Pham, Hung Xuan Do
The long-term and sustainable development focuses of green bond together with its increasing popularity drives the need for a better understanding of its hedging effects against market risks. Our study investigates whether and how green bond can act as a hedging instrument against implied volatility, a measure of forward-looking market uncertainty. We find evidence of significant time-varying connectedness
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Dissecting the Equity Premium Journal of Political Economy (IF 9.103) Pub Date : 2022-06-06 Tyler Beason, David Schreindorfer
We use option prices and realized returns to decompose risk premia into different parts of the return state space. In the data, 8/10 of the average equity premium is attributable to monthly returns below −10%, but returns below −30% matter very little. In contrast, prominent asset pricing models based on habits, long-run risks, rare disasters, undiversifiable idiosyncratic risk, and constrained intermediaries
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The Allocation of Food to Food Banks Journal of Political Economy (IF 9.103) Pub Date : 2022-06-06 Canice Prendergast
Feeding America allocates donated food to over 200 food banks. In 2005, it transitioned from a queueing mechanism to one where food banks use a specialized currency to bid for food. Food banks chose very different food than they received before. Small food banks acquired 72% more pounds per client than large food banks at little nutritional cost. This reallocation of food is estimated to have increased
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Conditional capital surplus and shortfall across renewable and non-renewable resource firms Energy Econ. (IF 7.042) Pub Date : 2022-06-07 Denny Irawan, Tatsuyoshi Okimoto
This study examines the conditional capital surplus and shortfall dynamics of renewable and non-renewable resource firms. To this end, this study uses the systemic risk index by Brownlees and Engle (2017) and considers two conditional systemic events, namely, a stock market crash and a commodity price crash. The results indicate that generally, companies in the resource sector tend to have conditional
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The shocks of armed conflicts to renewable energy finance: Empirical evidence from cross-country data Energy Econ. (IF 7.042) Pub Date : 2022-06-07 Qi-Cheng Yang, Mingbo Zheng, Jun-Sheng Wang, Yun-Peng Wang
Renewable energy finance may incur an economic or fiscal shock due to uncertainty and destruction from armed conflicts. Using cross-country panel data over the period 1996–2018, this research therefore examines the impact of armed conflicts on renewable energy finance based on linear and non-linear regression techniques. From the linear dynamic panel model we find that armed conflicts exhibit a negative
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The role of entrepreneurial absorptive capacity for knowledge spillover entrepreneurship Small Bus. Econ. (IF 8.164) Pub Date : 2022-06-05 Ronja Kirschning, Matthias Mrożewski
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Optimal technology adoption for power generation Energy Econ. (IF 7.042) Pub Date : 2022-06-06 Jerome Detemple, Yerkin Kitapbayev
We examine the decision problem of a power producer contemplating an upgrade of its current generation capacity based on a fossil fuel technology (gas plant), when price processes have affine drift and differentiable volatility functions. The operator can choose the best of four mutually exclusive alternatives, continue operating the current technology, replace it by a more efficient fossil fuel technology
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Too good to be true? Time-inconsistent renewable energy policies Energy Econ. (IF 7.042) Pub Date : 2022-06-06 Olga Chiappinelli, Nils May
The transition to low-carbon economies requires massive investments into renewable energies, which are commonly supported through regulatory frameworks. Yet, governments can have incentives – and the ability – to deviate from previously announced support policies once those investments have been made, which can deter investments. We analyze a renewable energy dynamic regulation game and derive under
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Quadratic hedging of risk neutral values Energy Econ. (IF 7.042) Pub Date : 2022-06-04 Nicola Secomandi
Risk neutral valuation determines no arbitrage values for financial or real assets, including ones that are exposed to energy price risk. It is always uniquely associated with a hedging strategy if and only if markets are complete, which is the exception in theory and never the case in practice. We apply quadratic hedging, which is both conceptually simple and partially analytically tractable, in a
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The life of the counterparty: Shock propagation in hedge fund-prime broker credit networks J. Financ. Econ. (IF 6.988) Pub Date : 2022-06-04 Mathias S. Kruttli, Phillip J. Monin, Sumudu W. Watugala
Using novel credit data, we show that hedge fund borrowing is significantly overcollateralized, primarily with rehypothecable securities. An idiosyncratic liquidity shock to a major prime broker significantly decreases credit to connected hedge funds. The dominant channel behind this shock transmission is credit supply reduction rather than precautionary demand reduction. Funds posting more rehypothecable
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Asymmetric Information and Sovereign Debt: Theory Meets Mexican Data Journal of Political Economy (IF 9.103) Pub Date : 2022-06-02 Harold Cole, Daniel Neuhann, Guillermo Ordoñez
Using bid-level data from discriminatory auctions for Mexican government bonds, we demonstrate that asymmetric information about default risk is a key friction in sovereign bond markets. We document that large bidders achieve higher bid-acceptance rates than other bidders despite paying no more for executed bids. We then propose a new model of primary markets in which investors may differ in wealth
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An integrated theory of dispatch and hedging in wholesale electric power markets Energy Econ. (IF 7.042) Pub Date : 2022-06-02 Darryl R. Biggar, Mohammad Reza Hesamzadeh
The literature on optimal dispatch of wholesale power systems implicitly assumes that market participants are risk-neutral. But, in practice, most wholesale electricity market participants behave as though they are risk averse, seeking to insulate themselves from the market risks they face. In this context, achieving the overall social-welfare maximum requires simultaneously finding both the optimal
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Going beyond sustainability: The diversification benefits of green energy financial products Energy Econ. (IF 7.042) Pub Date : 2022-06-02 Bushra Naqvi, Syed Kumail Abbas Rizvi, Amir Hasnaoui, Xuefeng Shao
After the inclusion of Green energy financing in the list of United Nations Sustainability Goals (SDGs) as SDG 7, the role, importance, and visibility of green financial products have escalated enormously. This paper assesses the utility of green exchange-traded funds (ETFs), in the investors' portfolios for their dual potential of sustainability and diversification. ETFs provide a unique opportunity
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Oil prices and fiscal policy in an oil-exporter country: Empirical evidence from Oman Energy Econ. (IF 7.042) Pub Date : 2022-05-31 Salwa Aljabri, Mala Raghavan, Joaquin Vespignani
This paper studies the impact of oil price shocks on fiscal policy and real GDP in Oman using new unexplored data. We find that an oil price shock explains around 22% and 46% of the government revenue and GDP variation, respectively. Decomposing the government revenue and GDP further into petroleum and non-petroleum related components, we find that an oil price shock explains around 26% of the variation
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Convex combinatorial auction of pipeline network capacities Energy Econ. (IF 7.042) Pub Date : 2022-05-31 Dávid Csercsik
In this paper we propose a mechanism for the allocation of pipeline capacities, assuming that the participants bidding for capacities do have subjective evaluation of various network routes. The proposed mechanism is based on the concept of bidding for route-quantity pairs. Each participant defines a limited number of routes and places multiple bids, corresponding to various quantities, on each of
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Oil price shocks and green bonds: An empirical evidence Energy Econ. (IF 7.042) Pub Date : 2022-05-31 Dina Azhgaliyeva, Zhanna Kapsalyamova, Ranjeeta Mishra
This paper contributes to the existing literature by investigating the impacts of crude oil price shocks on financial markets through an examination of the effect of oil price shocks on the issuance of corporate green bonds. Green bond issuance has been growing fast over the past several years; despite this, the share of green bonds in the total bonds remains less than 1%. Using the Tobit model, multilevel
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International trade and environmental corporate social responsibility Energy Econ. (IF 7.042) Pub Date : 2022-05-31 Juan Carlos Bárcena-Ruiz, Amagoia Sagasta
This paper analyzes firms' incentives to engage in environmental corporate social responsibility (ECSR) in an international market under imperfect competition. We find that in the absence of environmental taxes firms do not adopt ECSR. However, the implementation of environmental taxes by governments encourages firms to adopt ECSR under local damage. Consumers, producers, and environmentalists are
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Fire-sale risk in the leveraged loan market J. Financ. Econ. (IF 6.988) Pub Date : 2022-05-31 Redouane Elkamhi, Yoshio Nozawa
Using detailed loan holding data of Collateralized Loan Obligations (CLOs), we document empirical evidence for the fire sale of leveraged loans due to leverage constraints on CLOs. Constrained CLOs are forced to sell loans downgraded to CCC or below, and thus loans widely held by constrained CLOs experience temporary price depreciation. This instability is exacerbated by diversification requirements
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Time-varying Granger causality tests in the energy markets: A study on the DCC-MGARCH Hong test Energy Econ. (IF 7.042) Pub Date : 2022-06-03 Massimiliano Caporin, Michele Costola
The analysis of causality among oil prices and, in general, between financial and economic variables is of central relevance in applied economic studies. The recent contribution of Lu et al. (2014) proposes a new causality test, the DCC-MGARCH Hong test. We show that the critical values of the test statistic should be evaluated through simulations to avoid potential Type I errors. We also note that
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The productivity shock in business services Small Bus. Econ. (IF 8.164) Pub Date : 2022-05-31 Alexander S. Kritikos, Alexander Schiersch, Caroline Stiel
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Protestantism and energy poverty Energy Econ. (IF 7.042) Pub Date : 2022-05-26 Sefa Awaworyi Churchill, Russell Smyth
There is growing interest in the causes of energy poverty. This study examines the relationship between Protestantism and energy poverty. Employing household panel data for Australia, our preferred estimates, which account for endogeneity of Protestantism, suggest that being Protestant is associated with a 1.7 percentage point decrease in the probability that a respondent is in energy poverty based
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Financial transaction taxes and the informational efficiency of financial markets: A structural estimation J. Financ. Econ. (IF 6.988) Pub Date : 2022-05-26 Marco Cipriani, Antonio Guarino, Andreas Uthemann
We develop a new methodology to estimate the impact of a financial transaction tax (FTT) on financial market outcomes. In our sequential trading model, there are price-elastic noise and informed traders. We estimate the model through maximum likelihood for a sample of 60 NYSE stocks in 2017. We quantify the effect of introducing an FTT given the parameter estimates. An FTT increases the proportion
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Reevaluating the Long-Term Impact of In Utero Exposure to the 1918 Influenza Pandemic Journal of Political Economy (IF 9.103) Pub Date : 2022-05-25 Brian Beach, Ryan Brown, Joseph Ferrie, Martin Saavedra, Duncan Thomas
Journal of Political Economy, Ahead of Print.
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A volatility spillover analysis with realized semi(co)variances in Australian electricity markets Energy Econ. (IF 7.042) Pub Date : 2022-05-20 Evelyn Chanatásig-Niza, Aitor Ciarreta, Ainhoa Zarraga
Volatility spillovers are a characteristic of interconnected electricity markets. We use high-frequency prices to analyze the transmission of volatility across five Australian regional electricity markets. We propose several models: The first includes only realized variances; the second adds realized covariances; the last two include positive and negative realized semi(co)variances, separately, obtained
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Voting and trading: The shareholder’s dilemma J. Financ. Econ. (IF 6.988) Pub Date : 2022-05-23 Adam Meirowitz, Shaoting Pi
We study governance when shareholders vote and can also buy or sell shares. We find that voting for the policy that one believes is better for the firm maximizes portfolio value only when pivotal; otherwise, it is better to vote against one’s information, distort the market, and then trade at the distorted price. Equilibrium voting informativeness balances these forces and is demonstrably low. As the
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Bail-Ins and Bailouts: Incentives, Connectivity, and Systemic Stability Journal of Political Economy (IF 9.103) Pub Date : 2022-05-23 Benjamin Bernard, Agostino Capponi, Joseph E. Stiglitz
This paper endogenizes intervention in financial crises as the strategic negotiation between a regulator and creditors of distressed banks. Incentives for banks to contribute to a voluntary bail-in arise from their exposure to financial contagion. In equilibrium, a bail-in is possible only if the regulator’s threat to not bail out insolvent banks is credible. Contrary to models without intervention
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Back Cover Journal of Political Economy (IF 9.103) Pub Date : 2022-05-23
Journal of Political Economy, Volume 130, Issue 6, June 2022.
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Recent Referees Journal of Political Economy (IF 9.103) Pub Date : 2022-05-23
Journal of Political Economy, Volume 130, Issue 6, June 2022.
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JPE Turnaround Times Journal of Political Economy (IF 9.103) Pub Date : 2022-05-23
Journal of Political Economy, Volume 130, Issue 6, Page 1716-1716, June 2022.
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Front Matter Journal of Political Economy (IF 9.103) Pub Date : 2022-05-23
Journal of Political Economy, Volume 130, Issue 6, June 2022.
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Pioneering management buy-out and entrepreneurial finance research: Mike Wright’s research legacy Small Bus. Econ. (IF 8.164) Pub Date : 2022-05-20 Aurélie Sannajust, Alexander Groh