University of Zurich

Displaying 1-40 of 97 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

    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 // 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 // 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

    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 // 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 // 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 // Sep 2009

    The Value Of A Statistical Injury: New Evidence From The Swiss Labor Market

    The authors' study the monetary compensation for non-fatal accident risk in Switzerland using the number of accidents within cells defined over industry skill-level of the job and capitalizing on the partial panel structure of the data which allows to empirically isolating the wage component specific to the employer. The results...

    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 // 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 // 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

  • 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 // 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

    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

    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 // 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

    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 // 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 // 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 // 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 // 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

    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

    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 // 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 // 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

    Reverse Common Ratio Effect

    The results of a new experimental study reveal highly systematic violations of expected utility theory. The pattern of these violations is exactly the opposite of the classical common ratio effect discovered by Allais (1953). Two recent decision theories - stochastic expected utility theory (Blavatskyy, 2007) and perceived relative argument model...

    Provided By University of Zurich

  • White Papers // Feb 2010

    Malthus Was Right: New Evidence From A Time-Varying VAR

    Although Unified Growth Theory presumes the existence of the Maltusian mechanism in pre-industrial England recent empirical studies challenged this assumption. This paper studies the interaction of vital rates and real wages in the period from 1540 to 1870 in England. The authors employ time-varying VARs, an approach which addresses potential...

    Provided By University of Zurich

  • White Papers // Jan 2010

    Do Wage Cuts Damage Work Morale? Evidence From A Natural Field Experiment

    Contractual incompleteness characterizes many employment relations. High work morale is therefore fundamental for sustaining voluntary cooperation within the firm. The authors conducted a natural field experiment testing to what extent wages affect work morale. The results provide clear-cut evidence showing that wage cuts have a detrimental impact on work morale....

    Provided By University of Zurich

  • White Papers // Jan 2010

    Screening, Competition, And Job Design: Economic Origins Of Good Jobs

    In recent decades, many firms offered more discretion to their employees, often increasing the productivity of effort but also leaving more opportunities for shirking. These "High-performance work systems" are difficult to understand in terms of standard moral hazard models. The authors show experimentally that complementarities between high effort discretion, rent-sharing,...

    Provided By University of Zurich

  • White Papers // Jan 2010

    Trade, Markup Heterogeneity And Misallocations

    Markups vary widely across industries and countries, their heterogeneity has increased overtime and asymmetric exposure to international trade seems partly responsible for this phenomenon. In this paper, the authors study how the entire distribution of markups affects resource misallocation and welfare in a general equilibrium framework encompassing a large class...

    Provided By University of Zurich