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The local effects of bankruptcy - ©AdobeStock_sas

What are the local impacts of firms being liquidated? In a new paper, Professors Bernstein, Colonnelli, Giroud and Iverson show that it negatively affects the activity of closely located firms, mainly through a reduction in consumer traffic and a decrease in knowledge spillover. As a consequence, judges should take into account those negative spillovers when deciding whether or not to liquidate a (...)

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Micro-economics8 December 2016

Making Sense of Economic Models

Economics is not considered the most successful scientific discipline, to say the least. There are (...)

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Micro-economics7 December 2016

Do people manage their time like their money?

Time and money are two valuable and scarce resources that individuals try to manage optimally in (...)

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Micro-economics7 December 2016

How should we decide in the face of uncertainty?

How should governments decide in the face of radical uncertainties, such as those concerning (...)

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In a paper that focuses on trade agents’ beliefs about potential market transactions, Itzhak Gilboa (...)

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Uncertainty accompanies most individual and collective decisions. Given the unknown probabilities (...)

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Habit, genetic factors, socieconomic background, wealth, standards of living, family size, (...)

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How do you get competitive markets when firms that sell an end product control the means of (...)

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