Decision-Making in Economics eJournal最新文献

{"title":"A Sensitivity Analysis of the Long-Term Expected Utility of Optimal Portfolios","authors":"Hyungbin Park, Stephan Sturm","doi":"10.2139/ssrn.3401532","DOIUrl":"https://doi.org/10.2139/ssrn.3401532","url":null,"abstract":"This paper discusses the sensitivity of the long-term expected utility of optimal portfolios for an investor with constant relative risk aversion. Under an incomplete market given by a factor model, we consider the utility maximization problem with long-time horizon. The main purpose is to find the long-term sensitivity, that is, the extent how much the optimal expected utility is affected in the long run for small changes of the underlying factor model. The factor model induces a specific eigenpair of an operator, and this eigenpair does not only characterize the long-term behavior of the optimal expected utility but also provides an explicit representation of the expected utility on a finite time horizon. We conclude that this eigenpair therefore determines the long-term sensitivity. As examples, explicit results for several market models such as the Kim--Omberg model for stochastic excess returns and the Heston stochastic volatility model are presented.","PeriodicalId":224430,"journal":{"name":"Decision-Making in Economics eJournal","volume":"64 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-06-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"127910766","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Gender Difference in British Young Adults’ Retirement Saving Decision-Making Process: A Multi-Group Analysis Using Structural Equation Modelling (SEM)","authors":"Ellie Suh","doi":"10.2139/ssrn.3552070","DOIUrl":"https://doi.org/10.2139/ssrn.3552070","url":null,"abstract":"Several changes have been made to the state and workplace pension schemes in recent decades in Britain. One of the implications of these changes is that individuals now carry greater risks in accumulating and generating retirement income. Many studies have discussed the role of attitudinal and behavioral tendencies in the retirement saving decision-making process. However, the way these tendencies manifest themselves is assumed to be identical for men and women, as most studies examined the partial gender effect. These differences are particularly meaningful for those in early stages of adulthood, as their experience of key life events is shaped by socially constructed gender norms. While an increasing gender disparity in pension wealth over the life course is widely recognized in Britain, not many studies have provided empirical evidence on potential gender differences in young adults’ additional retirement saving. This study examines whether men and women differ in their retirement saving decision-making process, and if so to what extent. To do so, it uses an adapted version of Hershey and colleagues’ model of financial planning with the fourth wave of the Wealth and Assets Survey (WAS). Findings show that financial resilience, which represents individuals’ everyday financial behavior, is the most influential predictor for identifying retirement savers for both males and females. However, the manner in which their current socio-economic environment – income, homeownership, marital status, offspring – is interlinked with financial resilience varies considerably by gender. The partial effect of education on myopia also differs by gender. These findings suggest that there are indeed gender differences in the retirement saving decision-making process and that failing to consider such difference in policies may widen the gender gap in retirement saving.","PeriodicalId":224430,"journal":{"name":"Decision-Making in Economics eJournal","volume":"15 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-05-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"130623532","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Inflation and Retirement Annuities","authors":"Z. Bodie","doi":"10.2139/ssrn.3395060","DOIUrl":"https://doi.org/10.2139/ssrn.3395060","url":null,"abstract":"The only retirement contract that both insures against longevity risk and hedges against inflation is a life annuity that is linked to the consumer price index (CPI). It is denominated in the same units of account as Social Security benefits. We call it a “real annuity,” although it is also referred to as an inflation-indexed single-premium immediate annuity (SPIA). In computing a person’s replacement ratio of preretirement income, we can add Social Security benefits and the income produced by a real annuity to arrive at a meaningful number. An annuity that is not linked to the CPI we call a “nominal annuity.” It is measured in units that are different from Social Security, so it would be a mistake to add the two in computing a replacement ratio. Despite those obvious facts, real annuities are largely ignored in practice and they comprise a tiny portion of the annuities market. The vast majority of income annuities sold are fixed in nominal dollars. From the perspective of rational economic decision-making, this is a puzzle. Let’s call it the “nominal annuity puzzle.” The purpose of this article is to explore the reasons behind this puzzle and to suggest ways to solve it.","PeriodicalId":224430,"journal":{"name":"Decision-Making in Economics eJournal","volume":"30 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-05-25","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"121953677","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Ambiguity, Volatility, and Credit Risk","authors":"Patrick Augustin, Yehuda Izhakian","doi":"10.2139/ssrn.2776377","DOIUrl":"https://doi.org/10.2139/ssrn.2776377","url":null,"abstract":"\u0000 We explore the implications of ambiguity for the pricing of credit default swaps (CDSs). A model of heterogeneous investors with independent preferences for ambiguity and risk shows that, because CDS contracts are assets in zero net supply, the net credit risk exposure of the marginal investor determines the sign of the impact of ambiguity on CDS spreads. We find that ambiguity has an economically significant negative impact on CDS spreads, on average, suggesting that the marginal investor is a net buyer of credit protection. A 1-standard-deviation increase in ambiguity is estimated to decrease CDS spreads by approximately 6%. (JEL C65, D81, D83, G13, G22)\u0000 Authors have furnished an Internet Appendix, which is available on the Oxford University Press Web site next to the link to the final published paper online.","PeriodicalId":224430,"journal":{"name":"Decision-Making in Economics eJournal","volume":"195 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-04-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"115649132","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Spillover Effects of Distribution Grid Tariffs in the Internal Electricity Market: An Argument for Harmonization?","authors":"Niels Govaerts, K. Bruninx, H. Le Cadre, L. Meeus, E. Delarue","doi":"10.2139/ssrn.3324988","DOIUrl":"https://doi.org/10.2139/ssrn.3324988","url":null,"abstract":"In many countries, distribution grid tariffs are being reformed to adapt to the new realities of an electricity system with distributed energy resources. In Europe, legislative proposals have been made to harmonize these reforms across country borders. Many stakeholders have argued that distribution tariffs are a local affair, while the European institutions argued that there can be spillovers to other countries, which could justify a more harmonized approach. In this paper, we quantify these spillovers in a simplified numerical example to give insight and an order of magnitude. We look at different scenarios, and find that the spillovers can be both negative and positive. To be able to quantify these effects, we developed a long-run market equilibrium model that captures the wholesale market effects of distribution grid tariffs. The problem is formulated as a non-cooperative game involving consumers, generating companies and distribution system operators in a stylized electricity market.","PeriodicalId":224430,"journal":{"name":"Decision-Making in Economics eJournal","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"130184894","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Competing for Consumers in Financial Markets under a Fee-Based Compensation System for Advisors","authors":"M. Weinert","doi":"10.2139/ssrn.3259881","DOIUrl":"https://doi.org/10.2139/ssrn.3259881","url":null,"abstract":"In financial markets where consumers can only be reached through an advisor, product providers usually compete indirectly for consumers through commissions to advisors. Therefore, a regulatory ban on commissions may restrict this competition. We formulate a theoretical model in order to study the impact of such a ban on competition between product providers and analyze whether competition may take place through other channels than commissions. In a market with sufficiently differentiated products, competition through prices is not beneficial for product providers and does not take place in equilibrium. However, similar to commissions, advertising may serve as a competitive tool for product providers to attract consumers away from their competitors, since advertising may influence an advisor's product recommendation if he faces costly persuasion of consumers. The extent to which product providers engage in advertising depends crucially on their respective market share and the advisor's responsiveness to their attempts to steer his product recommendations.","PeriodicalId":224430,"journal":{"name":"Decision-Making in Economics eJournal","volume":"7 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"128570976","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Ý định mua vé máy bay qua đại lý của người tiêu dùng TPHCM (Intention to Purchase Airline Tickets Through Agents of Ho Chi Minh City Customers)","authors":"Giao Hà Nam Khánh","doi":"10.2139/ssrn.3687609","DOIUrl":"https://doi.org/10.2139/ssrn.3687609","url":null,"abstract":"<b>Vietnamese Abstract:</b> Đề tài nhằm xác định và đo lường các yếu tố ảnh hưởng đến ý định mua vé máy bay qua đại lý của người tiêu dùng tại thành phố Hồ Chí Minh (TPHCM), bằng việc khảo sát 371 người tiêu dùng (NTD) từ 18 tuổi trở lên đã từng mua vé máy bay qua đại lý và đang sống tại TPHCM. Nghiên cứu sử dụng công cụ SPSS 20 để phân tích độ tin cậy thang đo qua hệ số Cronbach’s Alpha, phân tích EFA, phần mềm AMOS 22 để phân tích CFA, kiểm định mô hình bằng phân tích cấu trúc tuyến tính SEM. <br><br>Kết quả nghiên cứu cho thấy 03 (ba) yếu tố tác động tích cực đến ý định mua vé máy bay của người tiêu dùng qua đại lý, sắp xếp theo độ mạnh giảm dần, bao gồm: Chuẩn chủ quan, Tốc độ, Kiến thức của nhân viên. Kết quả cũng giúp cho các nhà quản trị các đại lý có những điều chỉnh chiến lược và hành động phù hợp trong quá trình cạnh tranh khốc liệt hiện nay đối với thị trường vé máy bay.<br><br><b>English Abstract:</b> The study aimed to identify and measure the factors affecting the decision to purchase tickets through agents in Ho Chi Minh City (HCMC) by surveying 371 customers aged 18 and over who bought airline tickets through agents and live in HCMC. The SPSS 20 tool was used to analyze the reliability of the scale through the Cronbach's Alpha coefficient, EFA, AMOS 22 software by CFA, and evaluated by linear SEM analysis. <br><br>Research results show that there are three positive impact factors on the intention to buy airline tickets through agents, decreasing by their strength, include: Subjective norm, Speed and Agent’s knowledge. The results also help agents’ managers make appropriate strategic adjustments and actions in the competitive process for airline tickets nowadays.<br>","PeriodicalId":224430,"journal":{"name":"Decision-Making in Economics eJournal","volume":"54 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2018-11-06","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"129038865","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Introduction to Corporate Finance: A Practical Guide for Postgraduate and Research Students","authors":"Michel Guirguis","doi":"10.2139/ssrn.3274173","DOIUrl":"https://doi.org/10.2139/ssrn.3274173","url":null,"abstract":"The current position of the business can be verified through ratios analysis. According to this analysis managers, creditors, and investors can receive valuable information about the effectiveness and efficiency of the operations. Managers by using especially profitability, operating, and asset utilization ratios can maintain a fairly accurate perception of the financial health of their business. Different type of ratio can help them as they are indicator of well goals are being achieved. When actual results can not meet the standard set, then, ratios indicate where the problem may be. There are different types of ratios. Liquidity ratios are current and quick asset ratios. Profitability and operating ratios are return on asset, gross profit margin and net profit margin. Gearing ratios are divided into debt to equity ratio and number of times interest earned. There are different shareholder investment ratios such as return on shareholders, earnings per share, price earnings ratio, dividend yield and dividend covers. Under asset utilization ratios, we have the net asset turnover, debtor collection period, stockholding period and creditor payment period. Investment appraisal is a process which assists mangers to take decisions and evaluate the future success of a project in terms of profitability, suitability, and compatibility with company objectives. The value of money changes with time. Money received today has a different value from money received in the future. the investors before making any investment must take into consideration that different types of securities will have different kinds of risks. The several sources of risk can be classified as: interest rate risk, market risk, inflation risk, business risk, exchange rate risk, financial risk, country risk, and liquidity risk. No investment will be made unless the expected rate of return is high enough to compensate the investor for taking extra risks. In general, it is believed that the higher the perceived risk associated with an investment opportunity, the higher should be its expected return to persuade an investor to accept the investment opportunity. Investors are risk averse, namely that they want to reduce their risk through a diversified balanced portfolio. This leads us to modern portfolio theory, which was developed by Markowitz (1959). Arbitrage pricing theory, APT, is a more general approach to asset pricing because it allows for the possibility that many factors can be used to explain security returns. The assets of a company are financed by either debt or equity. After calculating the cost of capital for equity and debt, then, we combine them in a form of weighted average to calculate the final weighted average cost of capital. The reason of measuring the weighted average cost of capital is to find how much interest the company or the government has to pay for every Euro it borrows. Factors that affect the cost of capital are the capital structure of the company, the divide","PeriodicalId":224430,"journal":{"name":"Decision-Making in Economics eJournal","volume":"93 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2018-10-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"123794936","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"The Importance of Debt for Household Risky Asset Allocation and Portfolio Structure","authors":"R. Tao, Yuan Yuan","doi":"10.2139/ssrn.3265927","DOIUrl":"https://doi.org/10.2139/ssrn.3265927","url":null,"abstract":"When households decide on risky asset holdings, they do not make the decision in isolation from their debt structure and obligations, vice versa. We examine the joint behavior of debt and financial asset portfolio decisions, while existing empirical research on debt and asset portfolio choices has proceeded separately. In this paper, we first test the relationship between debt structure and asset allocation, then estimate the determinants of debt structure and asset allocation simultaneously. Using the 2016 Survey of Consumer Finances (SCF) data, we find robust evidence that debt structure affects households’ risky asset allocation decisions and identify, in this simultaneous decision-making process, the demographic and financial factors that can contribute to the household overall financial portfolio structure.","PeriodicalId":224430,"journal":{"name":"Decision-Making in Economics eJournal","volume":"23 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2018-10-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"122140121","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Long-Term Impact of Economic Conditions on Auditors’ Judgment","authors":"Xianjie He, S. Kothari, Tusheng Xiao, Luo Zuo","doi":"10.2139/ssrn.2892107","DOIUrl":"https://doi.org/10.2139/ssrn.2892107","url":null,"abstract":"ABSTRACT We find that economic conditions at the time an auditor enters the labor market have a long-term impact on her judgment and decision making. Specifically, engagement partners who started t...","PeriodicalId":224430,"journal":{"name":"Decision-Making in Economics eJournal","volume":"19 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2018-09-25","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"127095842","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}