Browsing Discussion papers (FOR) by Title
Now showing items 360379 of 516

Recursive utility and the equity premium puzzle: A discretetime approach
(Discussion papers;2013/03, Working paper, 201305)We study the EpsteinZin model with recursive utility. Recognizing that recursive preferences implies that the underlying model is not Markovian, we use methods not depending upon the Markov property to solve the model. ... 
Recursive utility using the stochastic maximum principle
(Discussion paper;03/14, Working paper, 201402)Motivated by the problems of the conventional model in rationalizing market data, we derive the equilibrium interest rate and risk premiums using recursive utility in a continuous time model. We consider ... 
Redistributive taxation, multinational enterprises, and economic integration
(Discussion paper, Working paper, 200803)Increased activity of multinational firms exposes national corporate tax bases to crosscountry profit shifting, but also leads to rising profitability of the corporate sector. We incorporate these two effects of economic ... 
Reflections about pseudodual prices in combinatorial auctions
(Discussion paper, Working paper, 200504)Combinatorial auctions permitting bids on bundles of items have been developed to remedy the exposure problem associated with singleitem auctions. Given winning bundle prices a set of item prices is called market clearing ... 
A regression surprise resolved
(Discussion paper, Working paper, 200809)In this note we explore the following surprising fact: In regression with trend and seasonality, the prediction risk is constant for all seasons of a new cycle, despite the fact that it increases with time when the seasons ... 
Relational Contracting, Negotiation, and External Enforcement
(Discussion paper;8/18, Working paper, 20180518)We study relational contracting and renegotiation in environments with external enforcement of longterm contractual arrangements. An external, longterm contract governs the stage games the contracting parties will play ... 
Relational Incentive Contracts and Performance Measurement
(Discussion paper;6/18, Working paper, 20180430)This paper analyzes relational contracts under moral hazard. We first show that if the available information (signal) about effort satisfies a generalized monotone likelihood ratio property, then irrespective of whether ... 
Relationshipspecificity, bargaining power, growth, and firm performance
(Discussion paper;04/14, Working paper, 201402)We investigate the relevance of relationshipspecificity in explaining firm performance and firm value. First, we use an incomplete contracts model to derive hypotheses on how relationshipspecificity interacts with ... 
Relative performance evaluation, agent holdup and firm organization
(Discussion paper, Working paper, 200707)We analyze a situation where common noise makes compensation based on relative performance evaluation (RPE) desirable, but where the agents' ability to holdup values ex post obstruct the implementation of optimal RPE ... 
Replication/prediction problems in the journeytowork
(Discussion paper, Working paper, 2002)In this paper we will consider gravity models for journeystowork. In applications of the theory it is sometimes assumed that the parameters in such models are fixed. We will provide examples to show that this is not ... 
Representation of preferences á la Savage with a general probability measure
(Discussion paper, Working paper, 200110)This paper addresses two weaknesses of the subjective expected utility representation of Savage: The first is that the resulting subjective probability measure P is atomless only, the second is that P is only finitely ... 
Rethinking how to support intermittent renewables
(Discussion paper;17/14, Working paper, 201404)Intermittent renewable energy sources, including solar and wind power, typically remain more expensive than conventional power sources. As a consequence, few intermittent power projects would have been deployed if speci ... 
Revelation of preferences in patient list data
(Discussion paper, Working paper, 2007)In this paper we will show how the patient list model in Ubøe & Lillestøl (2007) can be used to infer strength of preferences from patient list data. We prove that we can construct unique sets of preferences that replicates ... 
Revelation of preferences in trip distribution models
(Discussion paper, Working paper, 2007)In this paper we will see how commuter preferences can be revealed from observations of trip distributions. We will explain how to find unique representations of preference structures leading to an observed trip distribution, ... 
Revenue cap regulation in a deregulated electricity market : effects on a grid company
(Discussion paper, Working paper, 2001)In Norway, an incentivebased regulation of electricity distribution companies, based on revenue caps, was introduced in 1997. The revenues are adjusted annually, and the new revenue cap is determined on the basis of last ... 
The rise of individual performance pay
(Discussion paper, Working paper, 200607)Why does individual performance pay seem to prevail in humancapitalintensive industries where teamwork is so common? We present a model that aims to explain this. In a repeated game model of relational contracting, we ... 
Risk aversion in the large and in the small
(Discussion paper;2011:12, Working paper, 201106)Estimates of agents' risk aversion differ between market studies and experimental studies. We demonstrate that the estimates can be reconciled through consistent treatment of agents' tendency for narrow framing, regarding ... 
The risk components of liquidity
(Discussion paper, Working paper, 200803)Does liquidity risk differ depending on our choice of liquidity proxy? Unlike literature that considers common liquidity variation, we focus on identifying different components of liquidity, statistically and economically, ... 
Risk taking in selection contests
(Discussion paper, Working paper, 200011)We study selection contests in which the strategic variable is degree of risk rather than amount of effort. The selection efficiency of such contests is examined. We show that the selection efficiency of a contest may be ... 
Royalty Taxation under Profit Shifting and Competition for FDI
(Discussion paper;11/20, Working paper, 20200909)Multinational corporations increasingly use royalty payments for intellectual property rights to shift profits globally. This threatens not only the tax base of countries worldwide, it also affects the nature of competition ...