LIF-SAFE Working Papers: Recent submissions
Anzeige der Dokumente 21-40 von 334
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Gender Differences in Financial Advice
(2015-03-04)We show that financial advisors recommend more costly products to female clients, based onminutes from about 27,000 real-world advisory meetings and client portfolio data. Funds recommended to women have higher expense ... -
The Impact of Temporal Framing on the Marginal Propensity to Consume
(2021-02-23)We conducted a large-scale household survey in November 2020 to study how altering the time frame of a message (temporal framing) regarding an imminent positive income shock affects consumption plans. The income shock ... -
Biases in Information Selection and Processing: Survey Evidence from the Pandemic
(2021-02-10)How people form beliefs is crucial for understanding decision-making un- der uncertainty. This is particularly true in a situation such as a pandemic, where beliefs will affect behaviors that impact public health as well ... -
Obfuscation and Rational Inattention in Digitalized Markets
(2021-02-05)This paper studies the behavior of competing firms in a duopoly with rational inattentive consumers. Firms play a sequential game in which they decide to obfuscate their individual prices before competing on price. ... -
The Disposition Effect in Boom and Bust Markets
(2021-02-05)The disposition effect is implicitly assumed to be constant over time. However, drivers of the disposition effect (preferences and beliefs) are rather countercyclical. We use individual investor trading data covering several ... -
Global Realignment in Financial Market Dynamics: Evidence from ETF Networks
(2021-02-04)The centrality of the United States in the global financial system is taken for granted, but its response to recent political and epidemiological events has suggested that China now holds a comparable position. Using ... -
Smart (Phone) Investing? A Within Investor-Time Analysis of New Technologies and Trading Behavior
(2021-02-02)Using transaction-level data from two German banks, we study the effects of smartphones on investor behavior. Comparing trades by the same investor in the same month across different platforms, we find that smartphones ... -
The FOMC Risk Shift
(2021-01-27)We identify a component of monetary policy news that is extracted from high-frequency changes in risky asset prices. These surprises, which we call “risk shifts”, are uncorrelated, and therefore complementary, to risk-free ... -
Risk Taking, Preferences, and Beliefs: Evidence from Wuhan
(2020-03-24)We study risk taking in a panel of subjects in Wuhan, China - before, during the COVID-19 crisis, and after the country reopened. Subjects in our sample traveled for semester break in January, generating variation in ... -
An Extensible Model for Historical Financial Data with an Application to German Company and Stock Market Data
(2021-01-22)Broad, long-term financial and economic datasets are a scarce resource, in particular in the European context. In this paper, we present an approach for an extensible, i.e. adaptable to future changes in technologies and ... -
Motivated Beliefs and the Elderly's Compliance with COVID-19 Measures
(2021-01-26)Although the elderly are more vulnerable to COVID-19, the empirical evidence suggests that they do not behave more cautiously in the pandemic than younger individuals. This theoretical model argues that some individuals ... -
OTC Discount
(2020-12-08)We document a sizable OTC discount in the interdealer market for German sovereign bonds where exchange and over-the-counter trading coexist: the vast majority of OTC prices are favorable with respect to exchange quotes. ... -
Ambiguity and Investor Behavior
(2020-11-24)We relate time-varying aggregate ambiguity (V-VSTOXX) to individual investor trading. We use the trading records of more than 100,000 individual investors from a large German online brokerage from March 2010 to December ... -
Supranational Rules, National Discretion: Increasing Versus Inflating Regulatory Bank Capital?
(2021-02-16)We study how higher capital requirements introduced at the supranational and implemented at the national level affect the regulatory capital of banks across countries. Using the 2011 EBA capital exercise as a quasi-natural ... -
Financing Costs and the Efficiency of Public-Private Partnerships
(2020-11-18)The paper compares provision of public infrastructure via public-private partnerships (PPPs) with provision under government management. Due to soft budget constraints of government management, PPPs exert more effort and ... -
Evaluating the Effectiveness of Policies Against a Pandemic
(2020-11-12)We develop a novel empirical approach to identify the effectiveness of policies against a pandemic. The essence of our approach is the insight that epidemic dynamics are best tracked over stages, rather than over time. We ... -
When Should Retirees Tap Their Home Equity?
(2020-10-28)This paper studies a household’s optimal demand for a reverse mortgage. These contracts allow homeowners to tap their home equity to finance consumption needs. In stylized frameworks, we show that the decision to enter a ... -
Recapitalization, Bailout, and Long-run Welfare in a Dynamic Model of Banking
(2021-03-01)This paper studies the dynamic trade-off between the short-run costs and the long-run benefits of bank bailouts. In the model, banks leverage thanks to their cost advantage at monitoring firms, but hold precautionary capital ... -
Resiliency: Cross-Venue Dynamics with Hawkes Processes
(2020-10-16)Market fragmentation and technological advances increasing the speed of trading altered the functioning and stability of global equity limit order markets. Taking market resiliency as an indicator of market quality, we ... -
The Long-Term Distributional and Welfare Effects of Covid-19 School Closures
(2020-09-21)Using a structural life-cycle model, we quantify the long-term impact of school closures during the Corona crisis on children affected at different ages and coming from households with different parental characteristics. ...