Socio-Economic and Climate Change in Mongolia - Effects on Grassland Ecosystems

In Mongolia, in combination with strong changes of the whole society during the past 76 years, from the feudal system to socialism and from the socialist system of planned development to the market economy, there are a lot of changes in the use of natural resources all over the country. In consequence of this a lot of effects on grassland ecosystems, caused by socio-economic and climate driving factors, were observed and studied in different scales: zonal, regional, local

Intertemporal Information Acquisition and Investment Dynamics

This paper studies intertemporal information acquisition by agents that are rational Bayesian learners and that dynamically optimize over consumption, investment in capital, and investment in information. The model predicts that investors acquire more information in times when future capital productivity is expected to be high, the cost of capital is low, new technologies are expected to have a persistent impact on productivity, and the scalability of investments is expected to be high. My results shed light on the economic mechanisms behind various dynamic aspects of information production by the financial sector, such as the sources of variation in returns on information acquisition for investment banks or private equity funds

Learning, Active Investors, and the Returns of Financially Distressed Firms

I develop an analytically tractable dynamic asset pricing model to study expected returns of financially distressed firms in the presence of learning about firm fundamentals and endogenous information acquisition by active investors. The model reveals that learning and information acquisition critically affect lowfrequency risk exposures close to default and can, counter to standard models, rationalize low and even negative expected return premia for firms with high default risk. Similar to Schumpeter’s (1934) argument that recessions have a positive, cleansing effect on the economy, the model reveals that equity holders naturally benefit from an increased speed of learning about truly insolvent firms in downturns, which positively affects the value of their default option in these times. Equity holders’ option value is similarly enhanced by the ability to partially freeride on active investors’ information acquisition. Learning thus dynamically affects distressed firms’ exposures to business-cycle frequency risks and can rationalize striking, momentum-type dynamics in risk premia

Rating Agencies in the Face of Regulation

This paper develops a theoretical framework to shed light on variation in credit rating standards over time and across asset classes. Ratings issued by credit rating agencies serve a dual role: they provide information to investors and are used to regulate institutional investors. We show that introducing rating-contingent regulation that favors highly rated securities may increase or decrease rating informativeness, but unambiguously increases the volume of highly rated securities. If the regulatory advantage of highly rated securities is sufficiently large, delegated information acquisition is unsustainable, since the rating agency prefers to facilitate regulatory arbitrage by inflating ratings. Our model relates rating informativeness to the quality distribution of issuers, the complexity of assets, and issuers\u27 outside options. We reconcile our results with the existing empirical literature and highlight new, testable implications, such as repercussions of the Dodd-Frank Act

Cooperation, Norms, and Revolutions: A Unified Game-Theoretical Approach

Cooperation is of utmost importance to society as a whole, but is often challenged by individual self-interests. While game theory has studied this problem extensively, there is little work on interactions within and across groups with different preferences or beliefs. Yet, people from different social or cultural backgrounds often meet and interact. This can yield conflict, since behavior that is considered cooperative by one population might be perceived as non-cooperative from the viewpoint of another. To understand the dynamics and outcome of the competitive interactions within and between groups, we study game-dynamical replicator equations for multiple populations with incompatible interests and different power (be this due to different population sizes, material resources, social capital, or other factors). These equations allow us to address various important questions: For example, can cooperation in the prisoner's dilemma be promoted, when two interacting groups have different preferences? Under what conditions can costly punishment, or other mechanisms, foster the evolution of norms? When does cooperation fail, leading to antagonistic behavior, conflict, or even revolutions? And what incentives are needed to reach peaceful agreements between groups with conflicting interests? Our detailed quantitative analysis reveals a large variety of interesting results, which are relevant for society, law and economics, and have implications for the evolution of language and culture as well

Asymmetric Information and Intermediation Chains

We propose a parsimonious model of bilateral trade under asymmetric information to shed light on the prevalence of intermediation chains that stand between buyers and sellers in many decentralized markets. Our model features a classic problem in economics where an agent uses his market power to inefficiently screen a privately informed counterparty. Paradoxically, involving moderately informed intermediaries also endowed with market power can improve trade efficiency. Long intermediation chains in which each trader\u27s information set is similar to those of his direct counterparties limit traders\u27 incentives to post prices that reduce trade volume and jeopardize gains to trade

Soil diversity under semi-natural grassland within the forest-steppe zone - examples from Transylvania (Romania)

In the Transylvanian Basin, extensively managed hay meadows with a particular biodiversity could survive until today. Under a temperate-continental climate of the forest steppe and within the colline zone, they are situated on north-facing slopes with an erratic ondulated relief, dominated by small slumpings. A mosaic of different site conditions is illustrated by a patchy distribution of wet meadow, dry- and semi-dry grassland sites. However, little is still known about the edaphic properties of these ecosystems. Precise pedological studies, even less entire soil sequences, are nonexistent. Therefore, the presented findings are a first approach to outline the distribution of different soil types under such semi-natural grasslands. As preliminary results, they are embedded into a pedological-morphodynamic study about the regional grassland-dependent landscape development. Two northern exposed hay meadows were investigated through the application of catenas. Soil description was done according to 'Bodenkundliche Kartieranleitung' (KA 5), based on data gathered from cores, test pits, and laboratory analysis. Several different soil types were detected: On the upper slope and on exposed positions, driest conditions and lowest clay contents led to the formation of subtypes of 'Pararendzina', 'Tschernosem', and 'Kalktschernosem'. Along more inclined parts of the slope, 'Tschernosem' and 'Pelosol' occur with accented processes of soil creep. Within colluvial infillings of punctually distributed small depressions, highest clay- and SOM-amounts were recorded. Especially in 'Pelosol'-subtypes occuring there, intense seasonal waterlogging and desiccation dominates soil formation. Along the investigated slopes, the generally deep, clay- and organic matter-rich soil cover reveals a small-scale mosaic of different soil types, reflecting the variety of site conditions. The specific soil features further let assume a long lasting constancy of semi-natural grassland on these potentially forested sites within the forest steppe

Build-up versus resolution anomalies

Publisher Copyright: © 2022 Elsevier B.V.We classify asset pricing anomalies into those exacerbating mispricing (build-up anomalies) and those resolving it (resolution anomalies). We estimate the dynamics of price wedges for well-known anomaly portfolios and map them to firm-level mispricings. We find that several prominent anomalies like momentum and profitability further dislocate prices. Multi-factor models designed to eliminate one-month alphas still produce large price wedges. Our estimates yield a novel decomposition of Tobin's q, revealing that q's mispricing component has substantial explanatory power for firm investment. Overall, our results suggest that financial intermediaries chasing build-up anomalies negatively affect price efficiency and associated real capital allocation.preprintpublishe

Axelrod’s metanorm games on networks

Metanorms is a mechanism proposed to promote cooperation in social dilemmas. Recent experimental results show that network structures that underlie social interactions influence the emergence of norms that promote cooperation. We generalize Axelrod’s analysis of metanorms dynamics to interactions unfolding on networks through simulation and mathematical modeling. Network topology strongly influences the effectiveness of the metanorms mechanism in establishing cooperation. In particular, we find that average degree, clustering coefficient and the average number of triplets per node play key roles in sustaining or collapsing cooperationSpanish MICINN projects CSD2010-00034 (CONSOLIDER-INGENIO 2010) and DPI2010-16920, and by the Junta de Castilla y Leo´ n, references BU034A08 and GREX251-2009

Evaluating the drivers of and obstacles to the willingness to use cognitive enhancement drugs: the influence of drug characteristics, social environment, and personal characteristics

Sattler S, Mehlkop G, Graeff P, Sauer C. Evaluating the drivers of and obstacles to the willingness to use cognitive enhancement drugs: the influence of drug characteristics, social environment, and personal characteristics. Substance Abuse Treatment, Prevention, and Policy. 2014;9(1): 8.Background The use of cognitive enhancement (CE) by means of pharmaceutical agents has been the subject of intense debate both among scientists and in the media. This study investigates several drivers of and obstacles to the willingness to use prescription drugs non-medically for augmenting brain capacity. Methods We conducted a web-based study among 2,877 students from randomly selected disciplines at German universities. Using a factorial survey, respondents expressed their willingness to take various hypothetical CE-drugs; the drugs were described by five experimentally varied characteristics and the social environment by three varied characteristics. Personal characteristics and demographic controls were also measured. Results We found that 65.3% of the respondents staunchly refused to use CE-drugs. The results of a multivariate negative binomial regression indicated that respondents’ willingness to use CE-drugs increased if the potential drugs promised a significant augmentation of mental capacity and a high probability of achieving this augmentation. Willingness decreased when there was a high probability of side effects and a high price. Prevalent CE-drug use among peers increased willingness, whereas a social environment that strongly disapproved of these drugs decreased it. Regarding the respondents’ characteristics, pronounced academic procrastination, high cognitive test anxiety, low intrinsic motivation, low internalization of social norms against CE-drug use, and past experiences with CE-drugs increased willingness. The potential severity of side effects, social recommendations about using CE-drugs, risk preferences, and competencies had no measured effects upon willingness. Conclusions These findings contribute to understanding factors that influence the willingness to use CE-drugs. They support the assumption of instrumental drug use and may contribute to the development of prevention, policy, and educational strategies