University of Zurich

Displaying 1-40 of 124 results

  • White Papers // Jan 2012

    Experience With Model-Based Performance, Reliability and Adaptability Assessment of a Complex Industrial Architecture

    In this paper, the authors report on their experience with the application of validated models to assess performance, reliability, and adaptability of a complex mission critical system that is being developed to dynamically monitor and control the position of an oil-drilling platform. They present real-time modeling results that show that...

    Provided By University of Zurich

  • White Papers // Jan 2012

    A Resource-Aware Program Logic for a JVM-Like Language

    Guaranteeing bounded resource consumption of mobile code is one important facet of improving the security of distributed, decentralised systems. To achieve an independent verification of resource properties the authors employ a proof-carrying-code approach: the mobile code is sent together with a certificate that can be checked by the consumer before...

    Provided By University of Zurich

  • White Papers // Mar 2011

    An ER-Based Framework for Declarative Web Programming

    The authors describe a framework to support the implementation of web-based systems intended to manipulate data stored in relational databases. Since the conceptual model of a relational database is often specified as an Entity-Relationship (ER) model, they propose to use the ER model to generate a complete implementation in the...

    Provided By University of Zurich

  • White Papers // Jan 2011

    Simulation-Based Security With Inexhaustible Interactive Turing Machines

    Recently, there has been much interest in extending models for simulation-based security in such a way that the runtime of protocols may depend on the length of their input. Finding such extensions has turned out to be a non-trivial task. In this work, the authors propose a simple, yet expressive...

    Provided By University of Zurich

  • White Papers // Dec 2010

    Leverage And Covariance Matrix Estimation In Finite-Sample IV Regressions

    This paper develops basic algebraic concepts for Instrumental Variables (IV) regressions which are used to derive the leverage and influence of observations on the 2SLS estimate and compute alternative Heteroskedasticity-Consistent (HC1, HC2 and HC3) estimators for the 2SLS covariance matrix in a finite-sample context. Monte Carlo simulations and applications to...

    Provided By University of Zurich

  • White Papers // Dec 2010

    The Impact Of Labor Market Entry Conditions On Initial Job Assignment, Human Capital Accumulation, And Wages

    The authors estimate the effects of labor market entry conditions on wages for male individuals first entering the Austrian labor market between 1978 and 2000. They find a large negative effect of unfavorable entry conditions on starting wages as well as a sizeable negative long-run effect. Specifically, they estimate that...

    Provided By University of Zurich

  • White Papers // Dec 2010

    The Effects Of Bonus Taxes On Executive Compensation

    The financial crisis from 2007-2010 was the worst crisis since the Great Depression. Politicians, economists and regulators search for measures to avoid such a crisis to repeat. One prominent proposal is the introduction of bonus taxes for corporate executives. In this paper, the authors analyze the effects of such a...

    Provided By University of Zurich

  • White Papers // Nov 2010

    Per-Capita Incomes And The Extensive Margin Of Bilateral Trade

    Trade flows greatly vary in the number of different goods that are traded between countries. This "Extensive margin of bilateral trade" can be thought of as the manifestation of an interplay of the exporter's production technology, the importer's demand structure, and bilateral trade costs - it is more likely that...

    Provided By University of Zurich

  • White Papers // Nov 2010

    The Public Perception And Normative Valuation Of Executive Compensation: An International Comparison

    This paper describes individuals' perceptions and normative valuations of executive compensation using comparable survey data for fifteen OECD member countries. An over-whelming majority of individuals (more than 90%) believes that top executives earn more than they actually deserve. However, there is also substantial variation in the actual and ethical levels...

    Provided By University of Zurich

  • White Papers // Nov 2010

    Channel Systems: Why Is There A Positive Spread?

    An increasing number of central banks implement monetary policy via two standing facilities: a lending facility and a deposit facility. In this paper the authors show that it is socially optimal to implement a non-zero interest rate spread. They prove this result in a dynamic general equilibrium model where market...

    Provided By University of Zurich

  • White Papers // Oct 2010

    Predicting Coding Effort in Projects Containing XML Code

    This paper studies the problem of predicting the coding effort for a subsequent year of development by analysing metrics extracted from project repositories, with an emphasis on projects containing XML code. The study considers thirteen open source projects and applies machine learning algorithms to generate models to predict one-year coding...

    Provided By University of Zurich

  • White Papers // Oct 2010

    Robust Performance Hypothesis Testing With The Variance

    Applied researchers often test for the difference of the variance of two investment strategies; in particular, when the investment strategies under consideration aim to implement the global minimum variance portfolio. A popular tool to this end is the F-test for the equality of variances. Unfortunately, this test is not valid...

    Provided By University of Zurich

  • White Papers // Sep 2010

    Brain Versus Brawn: The Realization Of Women~s Comparative Advantage

    This paper examines the evolution of women in the labor market, specifically their post-World War II employment, wages and education, by assessing the role of technology changing labor demand requirements, as a driving force. The empirical results in the United Sates data show that job requirements have shifted from more...

    Provided By University of Zurich

  • White Papers // Sep 2010

    Viewing The Future Through A Warped Lens: Why Uncertainty Generates Hyperbolic Discounting

    A large body of experimental research has demonstrated that, on average, people violate the axioms of expected utility theory as well as of discounted utility theory. In particular, aggregate behavior is best characterized by probability distortions and hyperbolic discounting. But is it the same people who are prone to these...

    Provided By University of Zurich

  • White Papers // Sep 2010

    Harmful Signaling In Matching Markets

    Some labor markets have recently developed formal signaling mechanisms, e.g. the signaling for interviews in the job market for new Ph.D. economists. The authors evaluate the effect of such mechanisms on two-sided matching markets by considering a game of incomplete information between firms and workers. Workers have almost aligned preferences...

    Provided By University of Zurich

  • White Papers // Sep 2010

    Inequality And Growth: The Neglected Time Dimension

    The empirical literature on the relationship between inequality and growth offers a contradictory assessment: Estimators based on time-series (differences-based) variation indicate a strong positive link while estimators (also) exploiting the cross-sectional (level-based) variation suggest a negative relationship. Using an expanded dataset, the present paper confirms this conflicting pattern - and...

    Provided By University of Zurich

  • White Papers // Sep 2010

    How Groups Reach Agreement In Risky Choices: An Experiment

    This paper studies how groups resolve disagreement in lottery choices. In an experiment, subjects submit individual proposals, exchange chat messages, and must reach unanimity. Overall, group choices are more coherent and closer to risk neutrality than individuals'. The proposal of the minority prevails in about one instance out of five....

    Provided By University of Zurich

  • White Papers // Sep 2010

    Communication And Efficiency In Competitive Coordination Games

    Costless pre-play communication has been found to effectively facilitate coordination and enhance efficiency in games with Pareto-ranked equilibria. The authors report an experiment in which two groups compete in a weakest-link contest by expending costly efforts. Allowing intra-group communication leads to more aggressive competition and greater coordination than control treatments...

    Provided By University of Zurich

  • White Papers // Sep 2010

    Do Groups Fall Prey To The Winner's Curse?

    In a company takeover experiment, groups placed better bids than individuals and substantially reduced the winner's curse. This improvement was mostly due to peer pressure over the minority opinion and to group learning. Learning took place from interacting and negotiating consensus with others, not simply from observing their bids. When...

    Provided By University of Zurich

  • White Papers // Sep 2010

    Effort Provision And Communication In Teams Competing Over The Commons

    Schott et al. (2007) have shown that the "Tragedy of the commons" can be overcome when individuals share their output equally in groups of optimal size and there is no communication. In this paper the authors investigate the impact of introducing communication groups that may or may not be linked...

    Provided By University of Zurich

  • White Papers // Sep 2010

    Bankruptcy And Low Cost Carrier Expansion In The Airline Industry

    This paper studies how financial distress affects competition and how incumbent bankruptcy affects the growth of rivals, specifically in the context of airline bankruptcies. The author begins by studying whether bankrupt airlines put competitive pressures on rivals by cutting fares and maintaining or expanding capacity on the 1000 most popular...

    Provided By University of Zurich

  • White Papers // Sep 2010

    Multimarket Contact Effect On Collusion Through Diversification

    This paper establishes the potential positive relationship between MultiMarket Contact (MMC) and sustainable collusive profits under demand fluctuations. In particular, the author focuses on the correlation structure between demand shocks over multiple markets and shows how it can lead to a positive link between collusive profit and MMC. Simple theoretical...

    Provided By University of Zurich

  • White Papers // Aug 2010

    Fatal Attraction? Access To Early Retirement And Mortality

    The authors estimate the causal effect of early retirement on mortality for blue-collar workers. To overcome the problem of endogenous selection, they exploit an exogenous change in unemployment insurance rules in Austria that allowed workers in eligible regions to withdraw from the workforce up to 3.5 years earlier than those...

    Provided By University of Zurich

  • White Papers // Aug 2010

    Willingness-To-Pay For A New Pharmaceutical: Is It Worth The Money? Whose Money?

    This study seeks to provide evidence for deciding whether or not a new pharmaceutical should be included in the benefit list of social health insurance. A Discrete-Choice Experiment (DCE) was conducted in Germany to measure preferences for modern insulin therapy using long-acting insulin analogue "Insulin Detemir" in comparison to NPH...

    Provided By University of Zurich

  • White Papers // Jul 2010

    Non-homothetic Preferences, Parallel Imports And The Extensive Margin Of International Trade

    The authors study international trade in a model where consumers have non-homothetic preferences and where household income restricts the extensive margin of consumption. In equilibrium, monopolistic producers set high (low) prices in rich (poor) countries but a threat of parallel trade restricts the scope of price discrimination between countries. The...

    Provided By University of Zurich

  • White Papers // Jul 2010

    Biased Experts, Costly Lies, And Binary Decisions

    Decision makers lacking crucial specialist know-how often consult with better informed but biased experts. In the model the decision maker's choice problem is binary and her preferred option depends on the state of the world unknown to her. The expert observes the state and sends a report to the decision...

    Provided By University of Zurich

  • White Papers // Jul 2010

    Composition And Performance Of Research Training Groups

    This paper analyzes how one particular governance mechanism affects the performance of research teams. The authors look at an external requirement for interdisciplinary and internationality of Research Training Groups (RTGs) and study how their performance is affected. They expect to observe two countervailing effects with changes in interdisciplinary and/or internationality:...

    Provided By University of Zurich

  • White Papers // Jul 2010

    The Evolution Of Durable Goods Demand During China's Transition.

    Durable goods ownership is commonly seen as a 'Defining gauge' for the stage of development of a country. Its unprecedented economic growth and the rise of a strong and steadily growing class of consumers make China a formidable case study for the investigation of durable goods diffusion. Drawing on a...

    Provided By University of Zurich

  • White Papers // Jul 2010

    Rise Of The Service Sector And Female Market Work: Europe Vs US

    Continental Europe has seen a smaller rise in formal female employment compared with the United States or the Nordic countries. Additionally, Continental Europe has a substantially smaller service sector. These facts coincide with job requirements shifting from physical strength to intellectual capacity. Given empirical evidence, this paper develops a model...

    Provided By University of Zurich

  • White Papers // Jul 2010

    Renewable Energy Policy In The Presence Of Innovation: Does Government Pre-Commitment Matter?

    In a perfectly competitive market with a possibility of technological innovation the authors contrast guaranteed feed-in tariffs for electricity from renewable and tradable green certificates from a dynamic efficiency and social welfare point of view. Specifically, they model decisions about the technological innovation with convex costs within the framework of...

    Provided By University of Zurich

  • White Papers // Jun 2010

    Competition And Innovation: Does The Distance To The Technology Frontier Matter?

    This paper provides new evidence on the relationship between innovation, competition and distance to the technology frontier, using enterprise surveys from 40 developing and transition countries. Different from previous empirical studies, the distance to frontier is measured by a firm's technology level relative to its main competitor. This self-reported comparison...

    Provided By University of Zurich

  • White Papers // Jun 2010

    Rent-Seeking Contests With Independent Private Values

    The authors consider symmetric rent-seeking contests with independent private valuations of the contest prize. For a two-parameter specification with continuous types, they fully characterize the Bayesian equilibrium, and study its basic properties. The willingness to waste is a hump-shaped function of the private valuation, with the median type expending the...

    Provided By University of Zurich

  • White Papers // May 2010

    Awards At Work

    Awards - widespread in the corporate sector and elsewhere - are motivators that derive their value from non-pecuniary concerns such as status and self-image. Quasi-experimental panel data from the call center of a large international bank allow the authors to estimate the causal impact on effort when receiving an award....

    Provided By University of Zurich

  • White Papers // May 2010

    Optimal Grading

    Assuming that teachers are concerned with human capital formation and students - with ability signaling, in this paper the authors model a teacher-student relationship as an agency problem with conflicting interests. In the model, the teacher elicits effort from the student rewarding for it with a grade, the utility of...

    Provided By University of Zurich

  • White Papers // Apr 2010

    World Heritage List: Does It Make Sense?

    The UNESCO World Heritage List contains the 900 most treasured Sites of humanity's culture and landscapes. The World Heritage List is beneficial where heritage sites are undetected, disregarded by national decision-makers, not commercially exploitable, and where national financial resources, political control and technical knowledge for conservation are inadequate. Alternatives such...

    Provided By University of Zurich

  • White Papers // Apr 2010

    Pay As You Go: A New Proposal For Museum Pricing

    Museums have many different goals beyond efficiency such as social equity, financial revenue, attracting donors and gaining international, regional or local prestige. Various pricing schemes are being discussed with the aim of reaching these goals. The classical ones are entry prices and free entry. The museum club solution or exit...

    Provided By University of Zurich

  • White Papers // Mar 2010

    Preferences For Health Insurance In Germany And The Netherlands? A Tale Of Two Countries

    This paper contains an international comparison of preferences. Using two Discrete Choice Experiments (DCE), it measures willingness to pay for health insurance attributes in Germany and the Netherlands. Since the Dutch DCE was carried out right after the 2006 health reform, which made citizens explicitly choose a health insurance contract,...

    Provided By University of Zurich

  • White Papers // Feb 2010

    Optimal Market Design

    This paper introduces three methodological advances to study the optimal design of static and dynamic markets. First, the authors apply a mechanism design approach to characterize all incentive-compatible market equilibria. Second, they conduct a normative analysis, i.e. They evaluate alternative competition and innovation policies from a welfare perspective. Third, they...

    Provided By University of Zurich

  • White Papers // Feb 2010

    Coding Solutions for the Secure Biometric Storage Problem

    The paper studies the problem of securely storing biometric passwords, such as fingerprints and irises. With the help of coding theory Juels and Wattenberg derived in 1999 a scheme where similar input strings will be accepted as the same biometric. In the same time nothing could be learned from the...

    Provided By University of Zurich

  • White Papers // Feb 2010

    Quality Of Employment And Job Satisfaction: Evidence From Chile

    This paper investigates in detail the determinants of job satisfaction in a developing country. Two main results emerge from the analysis. Firstly, the authors show that as opposed to the empirical evidence from industrial countries, Chilean self-employed workers are more satisfied with their job than Chilean employees only after controlling...

    Provided By University of Zurich

  • White Papers // Jul 2010

    Non-homothetic Preferences, Parallel Imports And The Extensive Margin Of International Trade

    The authors study international trade in a model where consumers have non-homothetic preferences and where household income restricts the extensive margin of consumption. In equilibrium, monopolistic producers set high (low) prices in rich (poor) countries but a threat of parallel trade restricts the scope of price discrimination between countries. The...

    Provided By University of Zurich

  • White Papers // Jul 2008

    Shifting The Blame: On Delegation And Responsibility

    To fully understand the motives for delegating a decision right, it is important to study responsibility attributions for outcomes of delegated decisions. The authors conducted an experiment in which subjects were able to delegate the choice between a fair or unfair allocation, and used a punishment option to elicit responsibility...

    Provided By University of Zurich

  • White Papers // Dec 2008

    Securitization Of Mortgage Debt, Asset Prices And International Risk Sharing

    The authors explore the impact of mortgage securitization on the international diversification of macroeconomic risk. By making mortgage-related risks internationally tradeable, securitization contributes considerably to better international consumption risk sharing: They find that countries with the most highly developed markets for securitized mortgage debt have consumption responses to a typical...

    Provided By University of Zurich

  • White Papers // Jun 2008

    Loss Aversion

    Loss aversion is traditionally defined in the context of lotteries over monetary payoffs. This paper extends the notion of loss aversion to a more general setup where outcomes (consequences) may not be measurable in monetary terms and people may have fuzzy preferences over lotteries, i.e. they may choose in a...

    Provided By University of Zurich

  • White Papers // Jun 2008

    The Corporate Governance Of Benedictine Abbeys: What Can Stock Corporations Learn From Monasteries?

    The corporate governance structure of monasteries is analyzed to derive new insights into solving agency problems of modern corporations. In the long history of monasteries, some abbots and monks lined their own pockets and monasteries were undisciplined. Monasteries developed special systems to check these excesses and therefore were able to...

    Provided By University of Zurich

  • White Papers // May 2008

    Outside Versus Inside Bonds

    When agents are liquidity constrained, two options exist - borrow or sell assets. The authors compare the welfare properties of these options in two economies: in one, agents can borrow (issue inside bonds) and in the other they can sell government bonds (outside bonds). All transactions are voluntary, implying no...

    Provided By University of Zurich

  • White Papers // May 2008

    Learning, Public Good Provision, And The Information Trap

    The authors consider an economy where decision maker(s) do not know the true production function for a public good. By using Bayes rule they can learn from experience. They show that the economy may learn the truth, but that it may also converge to an inefficient policy where no further...

    Provided By University of Zurich

  • White Papers // May 2008

    Looking Awkward When Winning And Foolish When Losing: Inequity Aversion And Performance In The Field

    The experimental literature and studies using survey data have established that people care a great deal about their relative economic position and not solely, as standard economic theory assumes, about their absolute economic position. Individuals are concerned about social comparisons. However, behavioral evidence in the field is rare. This paper...

    Provided By University of Zurich

  • White Papers // Dec 2008

    Control Of The False Discovery Rate Under Dependence Using The Bootstrap And Subsampling

    This paper considers the problem of testing s null hypotheses simultaneously while controlling the False Discovery rate (FDR). Benjamini and Hochberg (1995) provide a method for controlling the FDR based on p-values for each of the null hypotheses under the assumption that the p-values are independent. Subsequent research has since...

    Provided By University of Zurich

  • White Papers // Nov 2008

    Awards As Incentives

    Non-monetary incentives in the form of awards have so far escaped the attention of economists despite their widespread use. This paper presents an experiment conducted online at IBM to assess the impact of these kinds of extrinsic incentives. Introducing a hypothetical award has statistically significant effects on stated contributions to...

    Provided By University of Zurich

  • White Papers // Feb 2010

    Quality Of Employment And Job Satisfaction: Evidence From Chile

    This paper investigates in detail the determinants of job satisfaction in a developing country. Two main results emerge from the analysis. Firstly, the authors show that as opposed to the empirical evidence from industrial countries, Chilean self-employed workers are more satisfied with their job than Chilean employees only after controlling...

    Provided By University of Zurich

  • White Papers // Apr 2009

    Management Fashion Pay-For-Performance For CEOs

    The authors show theoretically and empirically that Pay-for-Performance, like many management fashions, has not achieved its intended aim. The paper focuses on previous empirical studies that examine the relation between variable executive pay and firm performance on various different dates. The results indicate that a variable CEO income contributes very...

    Provided By University of Zurich

  • White Papers // Aug 2009

    Fine Tuning Of Health Insurance Regulation: Unhealthy Consequences For An Individual Insurer

    This paper sheds light on some unexpected consequences of health insurance regulation that may pose a big challenge to insurers' risk management. Because mandated uniform contributions to health insurance trigger risk selection efforts Risk Adjustment (RA) schemes become necessary. A good deal of research into the optimal RA formula has...

    Provided By University of Zurich

  • White Papers // Jan 2010

    Navigation Support for Mobile Learning

    Mobile learning exposes learning to the natural environment. If this environment is large, the learners have to navigate to find the learning objects or to explore the environment. Current mobile learning systems provide only minimal navigational support. Prior studies report that conventional pedestrian information systems are not suited to mobile...

    Provided By University of Zurich

  • White Papers // Jan 2010

    International Trade And Technological Diversification

    Developing countries feature much higher fluctuations in the growth rate of per capita income than developed ones, partly due to specialization in volatile industries. This paper justifies this specialization pattern drawing on two observations: at the industry level, the standard deviation of industry-specific productivity shocks is negatively related to the...

    Provided By University of Zurich

  • White Papers // Mar 2010

    Preferences For Health Insurance In Germany And The Netherlands? A Tale Of Two Countries

    This paper contains an international comparison of preferences. Using two Discrete Choice Experiments (DCE), it measures willingness to pay for health insurance attributes in Germany and the Netherlands. Since the Dutch DCE was carried out right after the 2006 health reform, which made citizens explicitly choose a health insurance contract,...

    Provided By University of Zurich

  • White Papers // Jul 2008

    Is There A U-shaped Relation Between Competition And Investment?

    The authors argue that, in a simple setting, the relation between the intensity of competition and cost-reducing investment is U-shaped. They consider a two-stage game with cost-reducing investments followed by a linear differentiated Cournot duopoly. They first show that, except for firms that are much less efficient than the competitor,...

    Provided By University of Zurich

  • White Papers // Apr 2008

    The Executive Turnover Risk Premium

    Executive compensation has increased dramatically over the past 15 years, but so has forced CEO turnover. The authors argue that part of the development of CEO pay can be explained by the adverse consequences that forced turnover implies for a CEO. They find that for the CEOs of the largest...

    Provided By University of Zurich

  • White Papers // Jan 2009

    Vanishing Liquidity, Market Runs, And The Welfare Impact Of TARP

    The author models a financial market that dries out in the wake of premature liquidations. Two main results are obtained. First, liquidity may vanish even if small, risk-neutral buyers could easily compensate the ongoing selling. Thus, more markets are vulnerable to "Runs" than suggested by previous work. Second, the scale...

    Provided By University of Zurich

  • White Papers // May 2008

    International Price And Earnings Momentum

    The authors find that price and earnings momentum are pervasive features of international equity markets when controlling for data snooping biases. In explaining the momentum phenomenon they show that European price momentum is subsumed by earnings momentum on an aggregate level, however, this rationale does not apply to each and...

    Provided By University of Zurich

  • White Papers // Oct 2009

    RFID-Based Entry Into the German B2B Parcel Market and Its Effect on Competitive Strategies, Prices and Market Shares: The Case of Red Parcel Post

    This paper analyzes the market entry of Red Parcel Post, a new player in the German Business-to-Business (B2B) parcel market. Currently there are four large service providers in the German B2B parcel market. Each of these incumbent providers operates - albeit with varying degrees of automation - with a classical...

    Provided By University of Zurich

  • White Papers // Jan 2012

    A Resource-Aware Program Logic for a JVM-Like Language

    Guaranteeing bounded resource consumption of mobile code is one important facet of improving the security of distributed, decentralised systems. To achieve an independent verification of resource properties the authors employ a proof-carrying-code approach: the mobile code is sent together with a certificate that can be checked by the consumer before...

    Provided By University of Zurich

  • White Papers // Jan 2012

    Experience With Model-Based Performance, Reliability and Adaptability Assessment of a Complex Industrial Architecture

    In this paper, the authors report on their experience with the application of validated models to assess performance, reliability, and adaptability of a complex mission critical system that is being developed to dynamically monitor and control the position of an oil-drilling platform. They present real-time modeling results that show that...

    Provided By University of Zurich

  • White Papers // Dec 2008

    Participation Costs For Responders Can Reduce Rejection Rates In Ultimatum Bargaining

    This paper reports data from an ultimatum mini-game in which responders first had to choose whether or not to participate. Participation was costly, but the participation cost was smaller than the minimum payoff that a responder could guarantee himself in the ultimatum game. Compared to a standard treatment, the authors...

    Provided By University of Zurich

  • White Papers // Nov 2008

    Inequality And Aggregate Savings In The Neoclassical Growth Model

    Within the context of the neoclassical growth model the author investigates the implications of (initial) endowment inequality when the rich have a higher marginal savings rate than the poor. More unequal societies grow faster in the transition process, and therefore exhibit a higher speed of convergence. Furthermore, there is divergence...

    Provided By University of Zurich

  • White Papers // Nov 2008

    A Behavioral Account Of The Labor Market: The Role Of Fairness Concerns

    In this paper, the authors argue that important labor market phenomena can be better understood if one takes the inherent incompleteness and relational nature of most employment contracts and the existence of reference-dependent fairness concerns among a substantial share of the population into account. Theory shows and experiments confirms that...

    Provided By University of Zurich

  • White Papers // Nov 2008

    Contracts As Reference Points ? Experimental Evidence

    In a recent paper, Hart and Moore (2008) introduce new behavioral assumptions that can explain long term contracts and important aspects of the employment relation. However, so far there exists no direct evidence that supports these assumptions and, in particular, Hart and Moore's notion that contracts provide reference points. In...

    Provided By University of Zurich

  • White Papers // Sep 2008

    Idiosyncratic Consumption Risk And Predictability Of The Carry Trade Premium: Euro Area Evidence

    The empirical failure of the uncovered interest rate parity condition seems to be the reflection of risk premia on foreign currencies. After the formation of foreign currency portfolios according to interest rate differentials or forward discounts, recent studies suggest that either consumption- or currency return-based pricing factors explain the cross-section...

    Provided By University of Zurich

  • White Papers // Aug 2008

    A Pioneer Of A New Monetary Policy? Sweden's Price Level Targeting Of The 1930s Revisited

    The paper re-examines Sweden's price level targeting during the 1930s which is regarded as a precursor of today's inflation targeting. According to conventional wisdom the Riksbank was the first central bank to adopt price level targeting as the guideline for its activities, although in practice giving priority to exchange rate...

    Provided By University of Zurich

  • White Papers // Aug 2008

    The Risk Premium On The Euro Area Market Portfolio: The Role Of Real Estate

    Incomplete consumption risk sharing implies that the market risk premium is high in times of lack of risk sharing and vice versa. In the time period from 1980 to 2007, this implication of incomplete consumption risk sharing for the market price of risk is not mirrored in excess returns on...

    Provided By University of Zurich

  • White Papers // Aug 2008

    Preference Reversals And Probabilistic Choice

    Preference reversals occur when different (but formally equivalent) elicitation methods reveal conflicting preferences over two alternatives. This paper shows that when people have fuzzy preferences i.e. when they choose in a probabilistic manner, their observed decisions can generate systematic preference reversals. A simple model of probabilistic choice and valuation can...

    Provided By University of Zurich

  • White Papers // Jul 2008

    Suburbanization And Homeownership Rates

    Homeownership rates in suburbs are much higher than in central cities. This paper shows that the systematic difference between homeownership rates causes suburbanization. The authors consider an economy with several regions: the central city, where most households rent, and the suburbs, where most own. Households migrate and vote on local...

    Provided By University of Zurich

  • White Papers // Jul 2008

    Job Design And Randomization In Principal Agent Models

    The authors analyze task allocation and randomization in Principal Agent models. They identify a new rationale that determines the allocation of tasks and show that it can be optimal to assign tasks that are very different to one agent. Similar to randomization, the reason to assign several tasks to one...

    Provided By University of Zurich

  • White Papers // Mar 2011

    An ER-Based Framework for Declarative Web Programming

    The authors describe a framework to support the implementation of web-based systems intended to manipulate data stored in relational databases. Since the conceptual model of a relational database is often specified as an Entity-Relationship (ER) model, they propose to use the ER model to generate a complete implementation in the...

    Provided By University of Zurich

  • White Papers // Jan 2010

    Introducing Automated Regression Testing in Open Source Projects

    To learn how to introduce automated regression testing to existing medium scale Open Source projects, a long-term field experiment was performed with the Open Source project FreeCol. Results indicate that introducing testing is both beneficial for the project and feasible for an outside innovator, testing can enhance communication between developers,...

    Provided By University of Zurich

  • White Papers // Oct 2010

    Predicting Coding Effort in Projects Containing XML Code

    This paper studies the problem of predicting the coding effort for a subsequent year of development by analysing metrics extracted from project repositories, with an emphasis on projects containing XML code. The study considers thirteen open source projects and applies machine learning algorithms to generate models to predict one-year coding...

    Provided By University of Zurich

  • White Papers // Dec 2008

    Emergence of Spontaneous Order Through Neighborhood Formation in Peer-to-Peer Recommender Systems

    The advent of the Semantic-Web necessitates paradigm shifts away from centralized client/server architectures towards decentralization and peer-to-peer computation, making the existence of central authorities superfluous and even impossible. At the same time, recommender systems are gaining considerable impact in e-commerce, providing people with recommendations that are personalized and tailored to...

    Provided By University of Zurich

  • White Papers // Jan 2009

    Foundations of SPARQL Query Optimization

    The SPARQL query language is a recent W3C standard for processing RDF data, a format that has been developed to encode information in a machine readable way. The authors investigate the foundations of SPARQL query optimization and provide novel complexity results for the SPARQL evaluation problem, showing that the main...

    Provided By University of Zurich

  • White Papers // Jan 2011

    Simulation-Based Security With Inexhaustible Interactive Turing Machines

    Recently, there has been much interest in extending models for simulation-based security in such a way that the runtime of protocols may depend on the length of their input. Finding such extensions has turned out to be a non-trivial task. In this work, the authors propose a simple, yet expressive...

    Provided By University of Zurich

  • White Papers // May 2009

    A Framework Of Corporate Sustainability And Its Organizational Pre-Conditions

    The discussion of Corporate Sustainability (CS) is hindered by a lack of definitional clarity of the concept of CS and neighboring concepts. Therefore in this paper a framework of corporate sustainability is constructed from information derived from guidelines concerning corporate sustainability. Within this framework, a differentiation between sustainability performance and...

    Provided By University of Zurich