The Energy Star program is the most prominent energy efficiency policy in the United States. Using data on residential clothes washers, we examine the price premium for the Energy Star label. A standard hedonic analysis reveals a number of confounding factors, including a large price premium for front loading washers. A regression discontinuity design reveals no significant price premium. Addit...

Sex workers draw a premium for engaging in unprotected sex. We theoretically motivate a test of whether this premium represents a compensating differential for disease, thereby mitigating sex workers’ propensity to use condoms. Using transactionlevel data and biological STI markers from sex workers in Ecuador, we exploit withinworker variation across local disease environments. We fi nd that lo...

Analysis of the equity premium puzzle has focused on private sector capital markets. The object of this paper is to consider the welfare and policy implications of each of the broad classes of explanations of the equity premium puzzle. As would be expected, the greater the deviation from the first-best outcome implied by a given explanation of the equity premium puzzle, the more interventionist...

This paper analyses how contractual arrangements for the sale and resale of premium programming affect competition in the pay-TV market. Competition is less effective when resale contracts specify per-subscriber fees rather than lump-sum payments. When premium programming is sold at terms similar to those observed in the UK, consumers can be made worse off than in the absence of premium program...

In this paper, based on the additive measure integral representation of a nonadditive measure integral, it is shown that any comonotonically additive premium principle can be represented as an integral of the distorted decumulative distribution function of the insurance risk. Furthermore, a sufficient and necessary condition that a premium principle is a distortion premium principle is given.

This paper examines the determinants of commodity futures hedging and of risk premia arising from covariation of the futures price with stock market returns, and with the reve? nues of producers. Owing to supply shocks that stochastically redistribute real wealth (surplus) between producers and consumers, and to limited participation in the futures market, the total risk premium in the model is...

Is the value premium predictable? We study time variations of the expected value premium using a two-state Markov switching model. We find that when conditional volatilities are high, the expected excess returns of value stocks are more sensitive to aggregate economic conditions than the expected excess returns of growth stocks. As a result, the expected value premium is time varying. It spikes...

We find that the true ex ante equity premium very likely lies within 50 basis points of 3.5%. This estimate is similar to values obtained in some recent studies but is considerably more precise. In addition to narrowing the range of plausible ex ante equity premia, we also find that equity premium models that allow for time-variation, breaks, and/or trends are the models that best match the exp...

the purpose of this paper is to explain the causes of long-run movements in the parallel market premium in the pre-and-post revolution iranian economy. the paper suggests that the premium is affected by both real and monetary shocks. non-spurious co-integration results indicate that negative oil revenue shocks and a revolution-induced exogenous capital outflow caused the parallel market paralle...

We consider the risk premium π demanded by a decision maker with present wealth x in order to be indifferent between obtaining a new level of wealth y1 with certainty, or to participate in a lottery which either results in unchanged wealth x or a level of wealth y2 > y1. We then define the relative risk premium λ as the quotient between π and the increase in wealth y1−x which the decision maker...