Search Results

Showing results 1 to 2 of approximately 2.

(refine search)
SORT BY: PREVIOUS / NEXT
Keywords:experimental economics 

Report
Endogenous Leverage and Default in the Laboratory

We study default and endogenous leverage in the laboratory. To this purpose, we develop a general equilibrium model of collateralized borrowing amenable to laboratory implementation and gather experimental data. In the model, leverage is endogenous: agents choose how much to borrow using a risky asset as collateral, and there are no ad hoc collateral constraints. When the risky asset is financial?namely, its payoff does not depend on ownership (such as a bond)? collateral requirements are high and there is no default. In contrast, when the risky asset is nonfinancial?namely, its payoff ...
Staff Reports , Paper 900

Report
Risk Preferences at the Time of COVID-19: An Experiment with Professional Traders and Students

We study whether the COVID-19 pandemic has impacted risk preferences, comparing the results of experiments conducted before and during the outbreak. In each experiment, we elicit risk preferences from two sample groups: professional traders and undergraduate students. We find that, on average, risk preferences have remained constant for both pools of participants. Our results suggest that the increases in risk premia observed during the pandemic are not due to changes in risk appetite; rather, they are solely due to a change in beliefs by market participants. The findings of our paper support ...
Staff Reports , Paper 927

FILTER BY year

FILTER BY Bank

FILTER BY Series

FILTER BY Content Type

Report 2 items

FILTER BY Author

FILTER BY Jel Classification

A10 1 items

C90 1 items

D81 1 items

D91 1 items

G12 1 items

N0 1 items

show more (1)

FILTER BY Keywords

experimental economics 2 items

COVID-19 1 items

collateral 1 items

default 1 items

double auction 1 items

financial markets professional 1 items

show more (3)

PREVIOUS / NEXT