Is Marriage Poisonous? Are Relationships Taxing? An Analysis of the Male Marital Wage Differential in Denmark The word for ‘married’ in Danish is the same as the word for ‘poison’. The word for ‘sweetheart’ in Danish is the same as the word for ‘tax’. In this paper we expand upon the literature documenting a significant marital wage premium for men in the United States to see if a similar diffe...

Professors Hwang, Chang and Wu are to be congratulated for this interesting paper. The authors study ex ante insurance guaranty schemes. In particular, capital forbearance mechanism and stochastic interest rate are incorporated in their model, and an explicit formula for the risk-based premium of the insurance guaranty fund is derived. I am especially interested in Section 2.3 and Appendix A. I...

Estimates of the historical equity risk premium in the UK are in the range 7% to 9% per annum. Until recently, portfolio investors and industrialists have been encouraged to use a premium of this order in making investment decisions. The purpose of this paper is to review the risk premium debate and to re-inforce the case for rejecting historical experience in formulating future investment plan...

This article uses Bayesian marginal likelihood analysis to compare univariate models of the stock return behavior and test for structural breaks in the equity premium. The analysis favors a model that relates the equity premium to Markov-switching changes in the level of market volatility and accommodates volatility feedback. For this model, there is evidence of a one-time structural break in t...

This study examines the impact of privacy defaults and expert recommendations on smartphone users' willingness to pay for “privacy-enhanced” features on paid applications using a 2 (privacy premium default/no privacy premium default) x 2 (privacy expert recommendation/non-privacy expert recommendation) experimental design. Participants (N 1⁄4 309) configured four paid apps with respect to priva...

While much accounting information is idiosyncratic in nature, economy-wide factors such as accounting standards affect the quality of idiosyncratic accounting information of many firms simultaneously. We study these two features of accounting information by embedding a parsimonious, moral hazard problem into the framework of a multi-firm economy in which project choices are endogenous to accoun...

A multi-sectoral partial equilibrium model of the markets for two types of Australian grapes and wine (premium and non-premium) is developed to study the aggregate returns from different types of research and promotion investments by the industry and their distribution across actors in the market (grapegrowers, winemakers, wholesalers/retailers, domestic consumers, the tax office and foreign co...

This study examines the effects on the stock market unitary risk premium and volatility associated with the listing of stock and stock index derivatives in Switzerland. Based on a univariate GARCH (1,1) specification of the stock index variance and a time-varying unitary risk premium representation, we can reject the hypothesis that stock and stock index derivatives listings do not affect the t...

China’s college admission rose from one million in 1998 to seven million in 2009, and associated with the expansion is the declining college premium for young workers. However, the college premium for senior workers increased in the same period. We show that the rising demand for skilled workers is the driving force. To explain this, we build a general equilibrium theory that considers two dime...

This paper examines whether a specific risk premium associated with “odious” sovereign debt issued by dictators exists. Bondholders could indeed require a premium to compensate for the higher default risk due to the odious character of the debts. The paper quantifies the risk premium required by investors to hold debts which could be denounced as odious and analyses ...