Here.

We implement a laboratory financial market where traders can access costly technology that reduces communication latency with a remote exchange. In this environment, we conduct a market design study on high-frequency trading: we contrast the performance of the newly proposed Frequent Batch Auction (FBA) against the Continuous Double Auction (CDA), which organizes trades in most exchanges worldwide. Our evidence suggests that, relative to the CDA, the FBA exhibits (1) less predatory trading behavior, (2) lower investments in low-latency communication technology, (3) lower transaction costs, and (4) lower volatility in market spreads and liquidity. We also find that transitory shocks in the environment have substantially greater impact on market dynamics in the CDA than in the FBA

From:

Eric M. Aldrich
Kristian López Vargas‡

Here.

The winning of a Nobel Prize is the greatest success in the professional output of any researcher, which makes him/her an academic leader (Zuckerman, 1967, 1977). This success comes from individual work, but it also has a collaborative component. In this letter, we perform a production analysis of the Economics laureates from a network perspective, which allows us to analyse cooperation links among them and to identify the academic leaders among the Nobel Prize laureates according to their production, the networks generated around the laureates, or their central position in the network.

 Our paper presents network evidence on all 78 Nobel laureates in Economics between 1969 and 2016, encompassing all publications between 1935 and 2015 included in the Web of Science.

From:

Molina, José Albert
Iñiguez, David
Ruiz, Gonzalo
Tarancón, Alfonso 

Here

We study, using laboratory experiments, the extent to which disclosure policies about the financial health of a bank affect the likelihood of a bank run. We consider two disclosure regimes, full disclosure and no disclosure, under two scenarios: one in which the bank is on average financially solvent and another in which the bank is on average insolvent. When the bank is on average insolvent, the full disclosure regime reduces the expected likelihood of runs. In contrast, when the bank is on average solvent, the full disclosure regime increases the expected likelihood of runs. Our evidence illustrates the importance of contemporary financial disclosure regulations.

From:

Chakravarty, Surajeet
Choo, Lawrence
Fonseca, Miguel A.
​Kaplan, Todd R.

Here.

Research Question

The interbank market offers banks the possibility to exchange liquidity without having to rely on other sources, such as central banks or retail deposits. While this is in general beneficial to the financial system, it fosters the connectedness and the synchronization of banks, thus making them more vulnerable. This paper aims at quantifying the risks borne by the system, the risks borne by single banks and the risks emitted from single banks. For this purpose, the interbank network structure is analyzed and a simulation method is applied to elicit the desired information. To show the functionality and implications of our framework, we apply it to the German interbank market as of end 2016.

Contribution

​We contribute to the literature by simulating distributions of possible events which allow to study the probability of arbitrary events, for example the probability of having a loss exceeding a certain threshold. Most studies in this strand of literature focus on deriving probabilities for particular events, which are all nested by our approach. Lastly, our framework further gives information about which banks emit the most risks through the interbank market, a widely-discussed concept often called “systemic relevance” in the literature. 


From:

Maximilian Jager (University of Mannheim)
​
Thomas Siemsen
Johannes Vilsmeier (European Central Bank)

​

Here.

In March 2020, the Federal Reserve enhanced its existing swap lines with foreign central banks, and introduced additional temporary swap lines with other central banks, in order to support the smooth functioning of U.S. dollar funding markets during the coronavirus epidemic. The Federal Reserve also announced purchases of US Treasuries and agency mortgage bonds in order to support the smooth functioning of the Treasury and mortgage-backed securities market. We analyse the motivations for and the effects of these measures

William A Allen
​Richhild Moessner 

Which they believe has increased enrollment and diversity.

Using Big Data to Solve Economic and Social Problems
Here.

Here.

​This is very encouraging.

This is what the agenda would have been

Here. For the nice version.


Behavioural Macroeconomics Workshop 23 March, 2020
London School of Economics, Room COW 1.11

Welcome Dinner Sunday 22 March, 19.00-21.00

Workshop Programme

Monday 23 March 9.00-10.20

Session 1 (Format: keynote 30 minutes. Other presentations 25 minutes, discussion 15 minutes)  Welcome by Paul De Grauwe (LSE)  Keynote: Paul Levine (University of Surrey): A Bird’s Eye View of Behavioural Macroeconomics  Joep Lustenhouwer (University of Heidelberg): Rationality Bias Discussant: Eddie Gerba (Danish National Bank) 10.20-10.50 Coffee break 10.50-12.50

Session 2  Jiri Kukacka (Charles University): Estimating Behavioural Macroeconomic Models Discussant: Svetlana Makarova (UCL)  Domenico Massaro (Catholic University of Milan): Managing SelfOrganization of Expectations: Macro Experiment Discussant: Yunus Aksoy (Birkbeck College)  Pei Kuang (University of Birmingham), Potential Output Pessimism and Austerity in the EU Discussant: Pasquale Foresti (University of Rouhampton) 12.50-13.50 Lunch 13.50-15.10

Session 3  Yuemei Ji (UCL), A Behavioural Macroeconomic Model with a Banking Sector Discussant: Corrado Macchiarelli (NIESR)  Frank Westerhoff (University of Bamberg), Behavioral Models of Asset and Housing Prices Discussant: Orkun Saka (University of Sussex and LSE) 15.10-15.40 Coffee Break 15.40- 17.00

​Session 4  Keynote: Ricardo Reis (LSE), Behavioural Expectations of Inflation  Arthur Turrell (Bank of England), Text-based Confidence Indices and Growth Forecasting Discussant: Xuxin Mao (NIESR) 17.00- 18.00 Panel Session:  Wouter Den Haan (LSE)  Ricardo Reis (LSE)  Arthur Turrell (Bank of England)  Charles Goodhart (LSE) 18.00-19.00 Drink















​

Past deadline but interesting definition of behavioral macroeconomics


To encourage research on behavioral macroeconomics, the NBER, with the generous support of the Alfred P. Sloan Foundation, is sponsoring two dissertation fellowships for doctoral students in behavioral macroeconomics. Each fellowship will be awarded for a one-year period, with renewal for a second year conditional upon satisfactory research progress. Fellowships will be awarded based on the recommendations of a selection panel consisting of Andrew Caplin (New York University), Yuriy Gorodnichenko (University of California – Berkeley; chair), Ulrike Malmendier (University of California – Berkeley), Andrei Shleifer (Harvard University), and Michael Woodford (Columbia University). The panel will assess each applicant’s potential to make an important contribution to key questions in behavioral macroeconomics. The panel will also strive to recruit a diverse group of award recipients, including to the extent possible individuals from under-represented minority groups and from a variety of academic institutions.

Fellowship recipients are expected to pursue academic research that is primarily related to: i) aggregate implications of limited capacity of household, firms, and policymakers to collect and process information; ii) decision making when agents have potentially mis-specified models or incomplete information sets; iii) formation of expectations; iv) optimal policy design (fiscal policy, monetary policy, communication policy, etc.); and v) interaction of economic agents with different levels of knowledge or sophistication. Other topics emphasizing aggregate implications of behavioral economics are accepted too. Students working in a range of fields including experimental economics, finance, international trade, public economics, and innovation economics are encouraged to apply.

Two fellowships will be awarded for the academic year 2020-2021. Each fellowship will provide a stipend of $36,000, will include $5,000 per year to support the costs of data acquisition and travel to research meetings, and will cover the fellow’s tuition at his or her home institution, up to a limit of $13,000 for the academic year. Fellows may choose to reduce their stipend to fund a larger data purchase or other research support. Awards will be announced by the end of January, 2020. Each fellowship will be renewable for the 2021-2022 academic year, subject to satisfactory progress as judged by the selection committee. Fellows will be expected to attend and participate in the NBER Summer Institute workshop on Behavioral Macroeconomics, which is held in Cambridge, MA in July. Fellows will be expected, to the extent possible, to make data collected for their research publicly available.

To be eligible for fellowship support, an applicant must be enrolled as a full-time Ph.D. student at a U.S. or Canadian college or university, must have advanced to dissertation candidacy status by the start of the fellowship period, and must not expect to complete the dissertation in 2021. NBER strongly encourages applications from women, minorities, people with disabilities, and veterans.

Applicants should upload a short research proposal consisting of no more than three pages of text and one supplemental page of tables or graphs, and a c.v., to
https://www.aeaweb.org/joe/listing.php?JOE_ID=2019-02_111463968.
The proposal should specify deliverables, such as expected research papers that will be finished at the end of the fellowship year. In addition, applicants should ask their dissertation supervisor to upload a letter of recommendation to the same website. All components of the application must be received by 11:59 pm (EST) on Monday, December 9, 2019. Applicants are responsible for verifying that their letter of recommendation has been sent by the deadline. In fairness to all applicants, the submission deadline is strictly enforced. Applications that are not complete, including the letter of recommendation, on December 9 will not be considered for support.

By May 1, 2021, fellows must provide the selection committee with a copy of at least one research paper on behavioral macroeconomics that was completed during the fellowship period.
​

Here.

The 12th Annual Kenneth J. Arrow Lecture was delivered by Colin F. Camerer, Robert Kirby Professor of Behavioral Economics and Director of the T&C Chen Center for Social and Decision Neuroscience, at California Institute of Technology, on "Natural Strategic Thinking in the Lab, Brain, and Field."

This lecture discussed game theories in which not all agents fully think through what other agents are likely to do. These "cognitive hierarchy" models (including level-k) are consistent with a wide variety of simple and more complex lab and field experiments, some data on neural activity, and have also been usefully applied in basic areas of economics including industrial organization and macroeconomics.

Discussants:

Joseph E. Stiglitz, 2001 Nobel Laureate in Economic Sciences; University Professor, Columbia University
Karla Hoff, Visiting Professor of International and Public Affairs, Columbia University; former Lead Economist, World Bank
Rosemarie Nagel, Professor, Universitat Pompeu Fabra; Research Professor at ICREA and Barcelona School of Economics; Director of BESLAB, Universitat Pompeu Fabra 

Co-sponsored by: The Center on Global Economic Governance, the Program for Economic Research, and Columbia University Press.
​
Biographies
Colin F. Camerer is the Robert Kirby Professor of Behavioral Finance and Economics at the California Institute of Technology (located in Pasadena, California), where he teaches cognitive psychology and economics. Professor Camerer earned a BA degree in quantitative studies from Johns Hopkins in 1977, and an MBA in finance (1979) and a Ph.D. in decision theory (1981) from the University of Chicago Graduate School of Business. Before coming to Caltech in 1994, Camerer worked at the Kellogg, Wharton, and University of Chicago business schools. He studies both behavioral and experimental economics.  
 
Karla Hoff is a Visiting Professor of Economics and International Affairs and was a lead economist at the World Bank before 2020. She co-directed the Bank’s World Development Report 2015: Mind, Society, and Behavior, an early synthesis of applications of behavioral economics to development economics. Behavioral economics in the 20th century demonstrated universal cognitive biases that can be addressed by changing the context of decision making. Behavioral economics in the 21st century showed that the social patterns to which individuals are exposed influence cognition and preferences in ways that can promote or impede economic progress. Karla is interested in how behavioral interventions can shift societies to better development paths. She has implemented lab-in-the field experiments in rural India to study stereotype threat, trust, third-party punishment, and the formation of conventions. She is currently evaluating a program of Theater of the Oppressed in West Bengal. She is an Associate Editor of The World Bank Economic Review and co-edited two books—The Economics of Rural Organization and Poverty Traps. She was a National Merit Scholar, majored in French at Wellesley College, served in the Peace Corps in the Ivory Coast, and earned a PhD in economics at Princeton University.
 
Rosemarie Nagel received her Ph.D. in economics in 1994 at the University of Bonn with Reinhard Selten as her advisor. In 1994-1995 she was a postdoc with Al Roth, University Pittsburgh. Since 1995 she has been working in the Department of Economics and Business in Universitat Pompeu Fabra; in 2006, she was promoted to full professor, and in 2007 she joined ICREA as a research professor. She is the director of the BESLAB in UPF and a research professor at the Barcelona School of Economics. Her main research is in experimental and behavioral economics, especially in macroeconomic experiments and in neuroeconomics. She has published in the American Economic Review, Econometrica, Review of Economic Studies, Strategic Management Journal, Proceedings of the National Academy of Sciences (PNAS), Nature Human Behavior, Financial Times, Spektrum der Wissenschaft, etc.
 
Joseph E. Stiglitz is an American economist and a professor at Columbia University. He is also the co-chair of the High-Level Expert Group on the Measurement of Economic Performance and Social Progress at the OECD, and the Chief Economist of the Roosevelt Institute. A recipient of the Nobel Memorial Prize in Economic Sciences (2001) and the John Bates Clark Medal (1979), he is a former senior vice president and chief economist of the World Bank and a former member and chairman of the (US president's) Council of Economic Advisers. In 2000, Stiglitz founded the Initiative for Policy Dialogue, a think tank on international development based at Columbia University. He has been a member of the Columbia faculty since 2001 and received that university's highest academic rank (university professor) in 2003. Known for his pioneering work on asymmetric information, Stiglitz's work focuses on income distribution, risk, corporate governance, public policy, macroeconomics and globalization. His most recent books are People, Power, and Profits, Globalization and Its Discontents Revisited, The Euro and Rewriting the Rules of the American Economy.
 

Here.

 by Austin Osborne  |    February 25, 2020
​
UAA’s College of Business and Public Policy (CBPP) welcomed Nobel Laureate Vernon Smith and his wife, Candace, to campus last week. Students had the opportunity to learn about Vernon’s work on experimental economics and attend an etiquette lunch and instruction session with Candace, who is a nationally-recognized business educator.

Vernon served as UAA's first Rasmuson Chair of Economics from 2003 to 2006. In 2002, shortly before joining UAA, he was awarded the Nobel Memorial Prize in Economic Sciences for developing methods to conduct laboratory-based economics experiments. He spearheaded the development of UAA's experimental economics program, and the Experimental Economics Lab has subsequently been recognized internationally for distinction in research and teaching and continues to attract leading scholars in the field.

A small group of CBPP students met and chatted with Vernon in an informal setting before he presented a seminar titled Classical Economics Lost and Found: The Role of Experiments to faculty and students.
Candace operates Candace Smith Etiquette, a program that teaches practical skills in etiquette, protocol and communication for business settings. Candace worked in secondary education for more than 25 years and garnered a number of distinctions, including a National Award for Excellence in Economics Education by the Foundation for Teaching Economics.

CBPP students had the opportunity to learn from Candace through a free lunch and education session in the Alaska Airlines Center. In this hands-on learning experience, Candace presented on dining with colleagues and potential employers.

All photos by James Evans, Chief of Photography & Videography, University of Alaska Anchorage. View the slideshow at the UAA Photo Bank.