We review evidence that investors make systematic errors, and that psychological biases a ect market prices. We argue that it is likely that mispricing causes substantial misallocation of resources and ineÆcient risk sharing. However, imperfect rationality of asset markets is not a free license for government to try to correct market mispricing ex post. There is no reason to think that regulato...

Aflatoxins, carcinogenic toxins produced by Aspergillus fungi, contaminate maize, peanuts, and tree nuts in many regions of the world. Pistachios are the main source of human dietary aflatoxins from tree nuts worldwide. Over 120 countries have regulations for maximum allowable aflatoxin levels in food commodities. We developed social network models to analyze the association between nations' af...

This study uses a sample of 715 banks from 95 countries and two-stage data envelopment analysis (DEA) to provide international evidence on the impact of regulations and supervision approaches on banks’ efficiency. We first use DEA to estimate technical and scale efficiency. We then use Tobit regression to investigate the impact of several regulations related to capital adequacy, private monitor...

Microblogs and social networks have become a valuable resource for mining sentiments in various fields. The sentiments posted on the web have reportedly influenced the trading and investment decisions and activities taking place in the stock exchanges. In this study, we have investigated explored the effects of microblogs on Chinese Stock Market. We have particularly focused on whether measurem...

This paper investigates whether labor market regulations involve a trade-off between efficiency and equity. We use city level data on efficiency and equity outcomes, and we explore the regional variation in the enforcement of labor regulation across 5,513 Brazilian cities. Although not all of the variation in enforcement can be considered exogenous, we control for pre determined regional charac...

This paper empirically studies U.S. and Canadian asbestos mining firms’ divestment process when the asbestos industry faced a long-run decline in demand. I develop a dynamic oligopoly model of capacity adjustment and exit based on Ericson and Pakes (1995). I calibrate my model to a panel data of the U.S. and Canadian asbestos mining industry’s capacities and exit/stay status over 1968-2002, and...

This Issue Brief describes how the structure of the health care market has changed in the recent years. It outlines the growth in managed care and the changes in the types of managed care plans available. In addition, it discusses the issue of quality in the health care market. It also includes an overview of the legislative topics and issues relating to quality and consumer rights that policym...

The future of China’s energy industry will include market-oriented reforms. Property rights are a fundamental right in a market economy, and the protection of property rights is a cornerstone of a market economy. The definition and protection of the energy industry’s property rights include the precondition that any enterprise, including various State-owned enterprises (“SOEs”), the three major...