We estimate 11 well-studied behavioral phenomena in a group of 190 laboratory subjects (short-term discount rates, small stakes risk aversion, present bias, loss aversion, the endowment effect, aversion to ambiguity and compound lotteries, the common ratio and common consequence effects and sender/receiver behavior in trust games). We study the joint distribution of these behaviors and compare ...

It has now become widely accepted that economic decisions are influenced by cognitive and emotional processes. In the present study, we aimed at disentangling the neural mechanisms associated with the way in which the information is formulated, i.e., framing effect, in terms of gain or loss, which influences people's decisions. Participants played a fMRI version of the Ultimatum Game (UG) where...

a r t i c l e i n f o Keywords: Loss aversion Downward housing price rigidity Monetary policy Threshold error correction model Asymmetric adjustment Previous studies have discovered the defensive characteristics of housing prices, which is also known as downward price rigidity. This paper discusses whether this feature would result in an asymmetric relationship between housing prices and moneta...

This paper develops an analytically tractable Bewley model of money demand to shed light on some important questions in monetary theory, such as the welfare cost of inflation. It is shown that when money is a vital form of liquidity to meet uncertain consumption needs, the welfare costs of inflation can be extremely large. With log utility and parameter values that best match both the aggregate...

Acquiring a good seems to increase its value to the owner, as consumers show reluctance to trade away their possessions for similarly valuable money or other goods. The established explanation for this endowment effect is that consumers evaluate potential trades with respect to their current holdings. From this perspective, selling prices exceed buying prices because owners of a good regard its...

This empirical paper examines the question of whether movements in housing sales predict subsequent movement in house prices or the converse. The former (positive) relationship is well hypothesized by several frictional search models of housing market transactions or "chum". The latter relationship has been hypothesized by two theories. Both loss aversion and liquidity or down-payment constrain...