Inflating value with other people’s money

Other Peoples Money: An Experimental Study of the Impact of the Competition for Funds

This paper investigates the impact of the competition for funds in capital markets on the risk taking behavior of fund managers. In doing this we …nd what we call an “Other People’s Money”e¤ect, or a tendency of people to invest the funds of others in riskier assets than they would invest their own funds. We …nd that this excessive risk taking is not a result of poorly designed contracts since ...

Incentivizing Exploration with Heterogeneous Value of Money

Recently, Frazier et al. proposed a natural model for crowdsourced exploration of different a priori unknown options: a principal is interested in the long-term welfare of a population of agents who arrive one by one in a multi-armed bandit setting. However, each agent is myopic, so in order to incentivize him to explore options with better long-term prospects, the principal must offer the agen...

Value for Money

Does U.S. Money Growth Determine Money Growth in Other Nations?

HE money-inflation relationship has been examined extensively for avariety of economies resulting in a consensus that money growth has had a significant and positive impact on inflation.’ A related, but little studied issue, is the relationship between money growth rates across countries. This issue is important for assessing the extent to which inflation pressures have been transmitted froni c...

Discharge reductions--value for money?

Through the Nuclear Liabilities Management Authority White Paper, the UK Government and the Regulators have signalled a commitment to further improving the operation of the regulatory regime and to its operating within the principles of proportionality, transparency, consistency and accountability which underpin the Government's approach to regulation in general. Particular emphasis is placed u...