SSRN Electronic Journal

Journal Information
EISSN : 1556-5068
Published by: Elsevier BV (10.2139)
Total articles ≅ 56
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Preet Deep Singh
Published: 22 October 2021
SSRN Electronic Journal; https://doi.org/10.2139/ssrn.3943467

Abstract:
Using a dataset of 150,011 projects from Kickstarter, we analyse factors that influence the success of a campaign. Projects launched in March, on a Sunday mentioning positive words are most likely to get funded. Results show that goal amount, day of launch, category of project, and duration of the project are statistically significant. We find the use of certain words is correlated (p<0.1) with the success and overachievement of the project. Invoking positive words such as 'please','thanks', 'father', 'together', 'ease','new' has a positive effect.
Tino Berger, Paul David Boll, James Morley, Benjamin Wong
Published: 21 October 2021
SSRN Electronic Journal; https://doi.org/10.2139/ssrn.3946709

Abstract:
We consider which labor market variables are the most informative for estimating and now-casting the U.S. output gap using a multivariate trend-cycle decomposition. Although the unemployment rate clearly contains important cyclical information, it also appears to reflect more persistent movements related to labor force participation that could distort inferences about the output gap. Instead, we show that the alternative U-2 unemployment rate (job losers as a percentage of the labor force) provides a more purely cyclical indicator of labor market conditions. To a lesser extent, but consistent with a link of the output gap to real labor costs in a New Keynesian setting, we also find that average hourly earnings are informative about the output gap.
Nikhil Agarwal, Eric B. Budish
Published: 20 October 2021
SSRN Electronic Journal; https://doi.org/10.2139/ssrn.3946495

Abstract:
This Handbook chapter seeks to introduce students and researchers of industrial organization (IO) to the field of market design. We emphasize two important points of connection between the IO and market design fields: a focus on market failures—both understanding sources of market failure and analyzing how to fix them—and an appreciation of institutional detail.Section II reviews theory, focusing on introducing the theory of matching and assignment mechanisms to a broad audience. It introduces a novel “taxonomy” of market design problems, covers the key mechanisms and their properties, and emphasizes several points of connection to traditional economic theory involving prices and competitive equilibrium.Section III reviews structural empirical methods that build on this theory. We describe how to estimate a workhorse random utility model under various data environments, ranging from data on reported preference data such as rank-order lists to data only on observed matches. These methods enable a quantification of trade-offs in designing markets and the effects of new market designs.Section IV discusses a wide variety of applications. We organize this discussion into three broad aims of market design research: (i) diagnosing market failures; (ii) evaluating and comparing various market designs; (iii) proposing new, improved designs. A point of emphasis is that theoretical and empirical analysis have been highly complementary in this research.
Jonas Send
Published: 20 October 2021
SSRN Electronic Journal; https://doi.org/10.2139/ssrn.3946235

Abstract:
Participants in an innovation contest may steal their opponents’ ideas to enhance their chance of winning. To model this, I introduce the ability to copy another player’s effort in a Tullock contest between two players. I characterise the unique equilibrium in this game dependent on the cost of copying and one of the players’ productivity advantage. If effort costs are low, the less productive player is more likely to win the contest. The model’s comparative statics have important implications for governments who subsidise firms in contests and for contest designers.
Di Fan, Yongjia (Rebecca) Lin, Maggie Fu, Andy Yeung, Xuanyi Shi
Published: 20 October 2021
SSRN Electronic Journal; https://doi.org/10.2139/ssrn.3946071

Abstract:
The speed of recovery from supply chain disruption has been identified as the predominant factor in building a resilient supply chain. However, COVID-19, as a rapidly evolving crisis, may challenge this assumption. Infection risk concerns would increase if managers decided to resume production immediately after the shutdown caused by the pandemic. Any incidents of infection may lead to further shutdowns of production lines and undermine firms’ long-term cash flows. Sampling 244 production resumption announcements by Chinese manufacturers in the early COVID-19 crisis (February to March 2020), our analysis shows that investors perceived the earlier production resumptions are with higher risk (indicated by declined stock price). Such concerns were exacerbated by more locally confirmed cases of COVID-19, while less salient for manufacturers with high debts (liquidity pressure). In addition, concerns about risks raised in response to early manufacturers’ resumption of production were found to proliferate overseas, as reflected by the more negative investor reactions seen in 252 US customers of the Chinese manufacturers. This study calls for a reassessment of the current disruption management mindset in response to new disasters and rapidly evolving crises (e.g., COVID-19), and provides theoretical, practical, and policy implications for building resilient supply chains.
Kekoura Sakouvogui
Published: 20 October 2021
SSRN Electronic Journal; https://doi.org/10.2139/ssrn.3946344

Abstract:
Due to the current lockdown and restrictions related to the COVID-19 pandemic, U.S. commercial and domestic banks are facing cashflow and financial difficulties. This has led to many vulnerable customers losing their source of income. In this paper, we test whether U.S. commercial and domestic banks are actively managing their liquidity and solvency positions during the COVID-19 pandemic. This paper adopts the Data Envelopment Analysis' estimator in a two-step procedure. First, economic efficiency measures of 16,830 December quarterly observations of U.S. commercial and domestic banks are estimated from December 2010 to December 2020. Within each year, 1,530 U.S. commercial and domestic banks are selected. Second, using Tobit and panel fixed effect regression models, the importance of both liquidity and solvency risks on economic efficiency during the COVID-19 pandemic is examined. Empirical estimates indicate that both liquidity and solvency risks negatively affect the economic efficiency measures of banks during the COVID-19 pandemic.
Mikhail Stolbov
Published: 19 October 2021
SSRN Electronic Journal; https://doi.org/10.2139/ssrn.3945399

Abstract:
The presentation describes the findings of the paper "The interaction between financial development, macroprudential policy and economic growth: a cross-country perspective" (joint with Maria Shchepeleva (HSE)) presented at the International Conference "The new global challenges and comparative economics" (University of Trento, October 18-20, 2021)
Pengfei Liu
Published: 19 October 2021
SSRN Electronic Journal; https://doi.org/10.2139/ssrn.3945744

Abstract:
This paper uses over 30 million individual-level trips in federal recreation loca- tions to investigate the impact of temperature on outdoor recreation activities. Our results show that a 1◦F temperature increase during the last 6 months increases the total trip duration by 0.685 days (or a 2.36% increase) and the total number of trips by 0.262 (or a 3.02% increase) at the zipcode-month level. The positive effect is primar- ily driven by the increased number of trips and more in-state travel. We find that the impact of temperature on recreation activities generally increases under a higher temperature. When the monthly temperature is below < 40◦F, the temperature increase will reduce the number of trips as individuals in low-temperature regions are likely to reduce travel demand when the temperature gets warmer. We show that a 1◦F increase in the current mean temperature will contribute to about US $20.93 billion to $26.79 billion additional economic benefits in the outdoor recreation sector, although potential damage from temperature increase still outweighs the benefit.
Paola Morales, Daniel Osorio, Juan Sebastián Lemus-Esquivel, Miguel Sarmiento
Published: 19 October 2021
SSRN Electronic Journal; https://doi.org/10.2139/ssrn.3945599

Abstract:
How does the expansion of domestic banks in international markets affect the bank lending channel of monetary policy? Using bank-firm loan-level data, we find that loan growth and loan rates from international banks respond less to monetary policy changes than domestic banks and that internationalization partially mitigates the risk-taking channel of monetary policy. Banks with a large international presence tend to tolerate more their credit risk exposition relative to domestic banks. Moreover, international banks tend to rely more on foreign funding when policy rates change, allowing them to insulate better the monetary policy changes from their credit supply than domestic banks. This result is consistent with the predictions of the internal capital markets hypothesis. We also show that macroprudential FX regulation reduces banks with high FX exposition access to foreign funding, ultimately contributing to monetary policy transmission. Overall, our results suggest that the internationalization of banks lowers the potency of the bank lending channel. Furthermore, it diminishes the risk-taking channel of monetary policy within the limit established by macroprudential FX regulations.
Oscar Rojas, Muhammed Khan
Published: 19 October 2021
SSRN Electronic Journal; https://doi.org/10.2139/ssrn.3945961

Abstract:
Performance and safety in battery packs are the major concern in the electrification sector. However, most of the research papers provide information, covering only one or very few parameters to describe the decrement of power and safety in the battery. It leaves aside a holistic and comprehensive study to critically evaluate performance in lithium-ion battery packs.This paper presents ten performance parameters with experiments and theory undertaken to understand the influence in power and safety in lithium-ion battery packs. The influence of performance parameters will provide and integrated approach to clearly identify the problems that induce decrement in performance and compromise safety in the battery.Comprehensive research of performance evaluation in electrification is nascent today, however, when the temperature and vibration parameters are critically reviewed, it has been found that a comprehensive effort is still required to evaluate the impact of vibration and temperature loads in the power performance and safety of lithium-ion battery packs for electric vehicles.
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