Search Results

Showing results 1 to 8 of approximately 8.

(refine search)
SORT BY: PREVIOUS / NEXT
Jel Classification:C91 

Working Paper
Pricing decisions in an experimental dynamic stochastic general equilibrium economy

We construct experimental economies, populated with human subjects, with a structure based on a nonlinear version of the New Keynesian Dynamic Stochastic General Equilibrium (DSGE) model. We analyze the behavior of firms' pricing decisions in four different experimental economies. We consider how well the experimental data conform to a number of accepted empirical stylized facts. Pricing patterns mostly conform to these patterns. Most price changes are positive, and inflation is strongly correlated with average magnitude, but not the frequency, of price changes. Prices are affected negatively ...
Finance and Economics Discussion Series , Paper 2014-93

Working Paper
Rationally Inattentive Savers and Monetary Policy Changes: A Laboratory Experiment

We present a model where rationally inattentive agents decide how much to save while imperfectly tracking interest rate changes. Suitable assumptions on agents’ preferences and interest rate distribution allow us to derive testable theoretical predictions and their implications for monetary policy. We probe these predictions using a laboratory experiment with induced inattention that closely reflects the theoretical assumptions. We find that, empirically, the laboratory data corroborates the results of the theoretical model. In particular, we show that experimental subjects respond to ...
Working Papers , Paper 1915

Working Paper
Inflation Expectations and Monetary Policy Design: Evidence from the Laboratory

Using laboratory experiments within a New Keynesian framework, we explore the interaction between the formation of inflation expectations and monetary policy design. The central question in this paper is how to design monetary policy when expectations formation is not perfectly rational. Instrumental rules that use actual rather than forecasted inflation produce lower inflation variability and reduce expectational cycles. A forward-looking Taylor rule where a reaction coefficient equals 4 produces lower inflation variability than rules with reaction coefficients of 1.5 and 1.35. Inflation ...
Finance and Economics Discussion Series , Paper 2015-45

Report
Gender discrimination and social identity: experimental evidence from urban Pakistan

Gender discrimination in South Asia is a well-documented fact. However, gender is only one of an individual?s many identities. This paper investigates how gender discrimination depends on the social identities of interacting parties. We use an experimental approach to identify gender discrimination by randomly matching 2,836 male and female students pursuing bachelor?s-equivalent degrees in three different types of institutions?Madrassas (religious seminaries), Islamic universities, and liberal universities?that represent distinct identities within the Pakistani society. Our main finding is ...
Staff Reports , Paper 593

Working Paper
How low can you go? Charity reporting when donations signal income and generosity

Consistent with nonprofit fundraising practices, donation visibility has been shown to increase giving. While concern for status is used to explain this response, the authors argue that this explanation relies on the assumption that giving signals only income or generosity. When giving signals both attributes overall status need not increase in donations, and donation-visibility may be harmful when individuals prefer to be perceived as poor-and-generous rather than rich-and-stingy. Using an experiment the authors find that both income-status and generosity-status concerns affect behavior. ...
Working Papers , Paper 13-11

Working Paper
Affirmative action and stereotype threat

In spite of the apparent success of affirmative action (AA) in the past, many oppose such policies. Opponents argue that the cost of attaining proportional representation by preferential policies is too high, reducing the quality of selected groups and stigmatizing members of the protected class. One way in which preferential policies might harm groups they are designed to benefit is by producing stereotype threat; that is, cueing a negative stereotype may lead individuals to conform to it. AA, by definition, singles out disadvantaged groups and therefore may unintentionally remind ...
Working Papers , Paper 13-14

Working Paper
Rationally Inattentive Consumer: An Experiment

This paper presents a laboratory experiment that directly tests the theoretical predictions of consumption choices under rational inattention. Subjects are asked to select consumption when income is random. They can optimally decide to reduce uncertainty about income by acquiring signals about it. The informativeness of the signals directly relates to the cognitive effort required to process the information. We find that subjects? behavior is largely in line with the predictions of the theory: 1) Subjects optimally make stochastic consumption choices; 2) They respond to incentives and changes ...
Working Papers , Paper 1813

Report
Real-time search in the laboratory and the market

While widely accepted models of labor market search imply a constant reservation wage policy, the empirical evidence strongly suggests that reservation wages decline in the duration of search. This paper reports the results of the first real-time-search laboratory experiment. The controlled environment that subjects face is stationary, and the payoff-maximizing reservation wage is constant. Nevertheless, subjects' reservation wages decline sharply over time. We investigate two hypotheses to explain this decline: 1) searchers respond to the stock of accruing search costs, and 2) searchers ...
Staff Reports , Paper 410

FILTER BY year

FILTER BY Content Type

Working Paper 6 items

Report 2 items

FILTER BY Jel Classification

C92 2 items

D11 2 items

D8 2 items

E20 2 items

J16 2 items

show more (11)

FILTER BY Keywords

PREVIOUS / NEXT