Asymmetric Information and the Market Structure of the Banking Industry
Asymmetric Information and the Market Structure of the Banking Industry

Author: Mr.Giovanni Dell'Ariccia

Publisher: International Monetary Fund

Published: 1998-06-01

Total Pages: 32

ISBN-13: 145195154X

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The paper analyzes the effects of informational asymmetries on the market structure of the banking industry in a multi-period model of spatial competition. All lenders face uncertainty with regard to borrowers’ creditworthiness, but, in the process of lending, incumbent banks gather proprietary information about their clients, acquiring an advantage over potential entrants. These informational asymmetries are an important determinant of the industry structure and may represent a barrier to entry for new banks. The paper shows that, in contrast with traditional models of horizontal differentiation, the steady-state equilibrium is characterized by a finite number of banks even in the absence of fixed costs.

Asymmetric information on non-cognitive skills in the Indian labor market: An experiment using an online job portal
Asymmetric information on non-cognitive skills in the Indian labor market: An experiment using an online job portal

Author: Yamauchi, Futoshi

Publisher: Intl Food Policy Res Inst

Published: 2018-07-20

Total Pages: 29

ISBN-13:

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This paper examines the impact of non-cognitive (socio-emotional) skills on job market outcomes using a randomized control trial implemented in an online job portal in India. Job seekers who registered in the portal were asked to take a Big Five type personality test and, for a random sub-sample of the test takers, the results were displayed to potential employers. Outcomes are measured by whether a potential employer shortlists a seeker by opening (unlocking) his/her application and background information. The results show that the treatment group for whom test results were shown generally enjoyed a higher probability of unlock. That is, employers are more interested in those for whom they can see personality test results. Such a relationship was not seen in the pre-test period, which confirms that the above results are unlikely to be spurious. We also found a significant impact among organized, calm, imaginative and/or quiet applicants (no effect was detected among easy-going, sensitive, realistic and/or out-going applicants), which seems to display employers’ preferences.

Moral Hazard in Health Insurance
Moral Hazard in Health Insurance

Author: Amy Finkelstein

Publisher: Columbia University Press

Published: 2014-12-02

Total Pages: 161

ISBN-13: 0231538685

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Addressing the challenge of covering heath care expenses—while minimizing economic risks. Moral hazard—the tendency to change behavior when the cost of that behavior will be borne by others—is a particularly tricky question when considering health care. Kenneth J. Arrow’s seminal 1963 paper on this topic (included in this volume) was one of the first to explore the implication of moral hazard for health care, and Amy Finkelstein—recognized as one of the world’s foremost experts on the topic—here examines this issue in the context of contemporary American health care policy. Drawing on research from both the original RAND Health Insurance Experiment and her own research, including a 2008 Health Insurance Experiment in Oregon, Finkelstein presents compelling evidence that health insurance does indeed affect medical spending and encourages policy solutions that acknowledge and account for this. The volume also features commentaries and insights from other renowned economists, including an introduction by Joseph P. Newhouse that provides context for the discussion, a commentary from Jonathan Gruber that considers provider-side moral hazard, and reflections from Joseph E. Stiglitz and Kenneth J. Arrow. “Reads like a fireside chat among a group of distinguished, articulate health economists.” —Choice

The Economics of Imperfect Labor Markets, Third Edition
The Economics of Imperfect Labor Markets, Third Edition

Author: Tito Boeri

Publisher: Princeton University Press

Published: 2021-01-26

Total Pages: 704

ISBN-13: 0691208824

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The leading textbook on imperfect labor markets and the institutions that affect them—now completely updated and expanded Today's labor markets are witnessing seismic changes brought on by such factors as rising self-employment, temporary employment, zero-hour contracts, and the growth of the sharing economy. This fully updated and revised third edition of The Economics of Imperfect Labor Markets reflects these and other critical changes in imperfect labor markets, and it has been significantly expanded to discuss topics such as workplace safety, regulations on self-employment, and disability and absence from work. This new edition also features engaging case studies that illustrate key aspects of imperfect labor markets. Authoritative and accessible, this textbook examines the many institutions that affect the behavior of workers and employers in imperfect labor markets. These include minimum wages, employment protection legislation, unemployment benefits, family policies, equal opportunity legislation, collective bargaining, early retirement programs, and education and migration policies. Written for advanced undergraduates and beginning graduate students, the book carefully defines and measures these institutions to accurately characterize their effects, and discusses how these institutions are being transformed today. Fully updated to reflect today's changing labor markets Significantly expanded to discuss a wealth of new topics, including the impact of the COVID-19 pandemic Features quantitative examples, new case studies, data sets that enable users to replicate results in the literature, technical appendixes, and end-of-chapter exercises Unique focus on institutions in imperfect labor markets Self-contained chapters cover each of the most important labor-market institutions Instructor's manual available to professors—now with new exercises and solutions

Asymmetric Information in Financial Markets
Asymmetric Information in Financial Markets

Author: Ricardo N. Bebczuk

Publisher: Cambridge University Press

Published: 2003-08-21

Total Pages: 176

ISBN-13: 9780521797320

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Asymmetric information (the fact that borrowers have better information than their lenders) and its theoretical and practical evidence now forms part of the basic tool kit of every financial economist. It is a phenomenon that has major implications for a number of economic and financial issues ranging from both micro and macroeconomic level - corporate debt, investment and dividend policies, the depth and duration of business cycles, the rate of long term economic growth - to the origin of financial and international crises. Asymmetric Information in Financial Markets aims to explain this concept in an accessible way, without jargon and by reducing mathematical complexity. Using elementary algebra and statistics, graphs, and convincing real-world evidence, the author explores the foundations of the problems posed by asymmetries of information in a refreshingly accessible and intuitive way.

The Economics of Asymmetric Information
The Economics of Asymmetric Information

Author: B. Hillier

Publisher: Bloomsbury Publishing

Published: 1997-04-07

Total Pages: 199

ISBN-13: 1349254851

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This book presents recent developments in the economics of asymmetric information. The problems of selection and moral hazard, with hidden actions or hidden information, are introduced by examining how they affect the market for investment finance. The ideas are then used to analyse the market for insurance, signalling and screening models of education, efficiency wages, industrial regulation, public procurement and auctions. Coverage is thorough while avoiding excessive mathematical detail. Diagrams and verbal reasoning make the ideas accessible to intermediate level undergraduate students and beyond.

New Analyses in Worker Well-Being
New Analyses in Worker Well-Being

Author: Konstantinos Tatsiramos

Publisher: Emerald Group Publishing

Published: 2013-11-13

Total Pages: 320

ISBN-13: 1783500573

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In no economy do all employees fare equally. Some variation stems from innate worker heterogeneity, some from differential human capital investment, some from imperfect information, some from demand shocks, some from asymmetric technological change, and some from government policies.