4,448 research outputs found

    Potential relationship of epistemic games to group dynamics and learning orientations towards physics problem solving

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    Current investigations into pedagogical goals of introductory algebra-based physics students at the University of Central Arkansas, by learning orientation towards an in-class metacognitive group problem solving task, seek to determine possible relationships with attitudinal shifts and course performance. Students thus far have been untreated with known group-based learning pedagogies, so as to establish trends of common group habits, and ultimately to properly inform implementation of group-based pedagogies in reaction to these trends. However, students' group dynamics and learning orientations prove difficult to map to group-based measurements; an estimate of group learning orientation and preferred working group dynamic is here explored as a potential means of interpreting students' use of problem solving strategies. A means of "sampling" audiovisual data in a live classroom of several simultaneous groups is also presented as a way to estimate the frequency of chosen strategies to this end.Comment: 4 pages, 2 figures, 2 tables, conference proceeding

    Causes of U.S. Bank Distress During the Depression

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    This paper provides the first comprehensive econometric analysis of the causes of bank distress during the Depression. We assemble bank-level data for virtually all Fed member banks, and combine those data with county-level, state-level, and national-level economic characteristics to capture cross-sectional and inter-temporal variation in the determinants of bank failure. We construct a model of bank survival duration using these fundamental determinants of bank failure as predictors, and investigate the adequacy of fundamentals for explaining bank failures during alleged episodes of nationwide or regional banking panics. We find that fundamentals explain most of the incidence of bank failure, and argue that contagion' or liquidity crises' were a relatively unimportant influence on bank failure risk prior to 1933. We construct upper-bound measures of the importance of contagion or liquidity crises. At the national level, we find that the first two banking crises identified by Friedman and Schwartz in 1930 and 1931 are not associated with positive unexplained residual failure risk, or with changes in the importance of liquidity measures for forecasting bank failures. The third banking crisis they identify is a more ambiguous case, but even if one views it as a bona fide national liquidity crisis, the size of the contagion effect could not have been very large. The last banking crisis they identify at the beginning of 1933 is associated with important, unexplained increases in bank failure risk. We also investigate the potential role of regional or local contagion and illiquidity crises for promoting bank failure and find some evidence in support of such effects, but these are of small importance in the aggregate. We also investigate the causes of bank distress measured as deposit contraction, using county-level measures of deposits of all commercial banks, and reach similar conclusions about the importance of fundamentals in determining deposit contraction.

    Resolving the puzzle of the underissuance of national bank notes

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    The puzzle of underissuance of national bank notes disappears when one disaggregates data, takes account of regulatory limits, and considers differences in opportunity costs. Banks with poor lending opportunities maximized their issuance. Other banks chose to limit issuance. Redemption costs do not explain cross-sectional variation in issuance, and the observed relationship between note issuance and excess reserves is inconsistent with the redemption risk hypothesis of underissuance. National banks did not enter primarily to issue national bank notes, and a “pure arbitrage” strategy of chartering a national bank only to issue national bank notes would not have been profitable. Indeed, new entrants issued less while banks exiting were often maximum issuers. Economies of scope between note issuing and deposit banking included shared overhead costs and the ability to reduce costs of mandatory minimum reserve and capital requirements.Bank notes ; National banks (United States)

    Contagion and Bank Failures During the Great Depression: The June 1932 Chicago Banking Panic

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    Studies of pre-Depression banking argue that banking panics resulted from depositor confusion about the incidence of shocks, and that interbank cooperation avoided unwarranted failures. This paper uses individual bank data to address the question of whether solvent Chicago banks failed during the panic asthe result of confusion by depositors. Chicago banks are divided" into three groups: panic failures, failures outside the panic window, and survivors. The characteristics of these three groups are compared to determine whether the banks that failed during the panic were similar ex ante" to those that survived the panic or whether they shared characteristics with other banks that failed. Each category of comparison -- the market-to-book value of equity, the estimated probability or failure or duration of survival the composition of debt, the rates of withdrawal of debt during 1931, and the interest rates paid on debt -- leads to the same conclusion: banks that failed during the panic were similar to others that failed and different from survivors. The special attributes of failing banks were distinguishable at least six months before the panic and were reflected in stock prices, failure probabilities, debt composition, and interest rates at least that far in advance. We conclude that failures during the panic reflected relative weakness in the face of common asset value shock rather than contagion. Other evidence points to cooperation among solvent Chicago banks a key factor in avoiding unwarranted bank failures during the panic.

    Contracting for Impure Public Goods: Carbon Offsets and Additionality

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    Governments contracting with private agents for the provision of an impure public good must contend with agents who would potentially supply the good absent any payments. This additionality problem is centrally important in the use of carbon offsets as part of climate change mitigation. Analyzing optimal contracts for forest carbon sequestration, an important offset category, we conduct a national-scale simulation using results from an econometric model of land-use change. The results indicate that for an increase in forest area of 50 million acres, annual government expenditures with optimal contracts are about $4 billion lower compared than under a uniform subsidy.Carbon Sequestration, Incentive Contracting, Offsets, Additionality

    Credit card securitization and regulatory arbitrage

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    This paper explores the motivations and desirability of off-balance-sheet financing of credit card receivables by banks. We explore three related issues: the degree to which securitizations result in the transfer of risk out of the originating bank, the extent to which securitization permits banks to economize on capital by avoiding regulatory minimum capital requirements, and whether banks' avoidance of minimum capital regulation through securitization with implicit recourse has been undesirable from a regulatory standpoint. We show that this intermediation structure could be motivated either by desirable efficient contracting in the presence of asymmetric information or by undesirable safety net abuse. We find that securitization results in some transfer of risk out of the originating bank but that risk remains in the securitizing bank as a result of implicit recourse. Clearly, then, securitization with implicit recourse provides an important means of avoiding minimum capital requirements. We also find, however, that securitizing banks set their capital relative to managed assets according to market perceptions of their risk and seem not to be motivated by maximizing implicit subsidies relating to the government safety net when managing their risk. Thus, the evidence is more consistent with the efficient contracting view of securitization with implicit recourse than with the safety net abuse view. Concerns expressed by policymakers about this form of capital requirement avoidance appear to be overstated. ; Also issued as Payment Cards Center Discussion Paper No. 03-05Credit cards

    Resolving the Puzzle of the Underissuance of National Bank Notes

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    The puzzle of underissuance of national bank notes disappears when one disaggregates data, takes account of regulatory limits, and considers differences in opportunity costs. Banks with poor lending opportunities maximized their issuance. Other banks chose to limit issuance. Redemption costs do not explain cross-sectional variation in issuance and the observed relationship between note issuance and excess reserves is inconsistent with the redemption risk hypothesis of underissuance. National banks did not enter primarily to issue national bank notes, and a "pure arbitrage" strategy of chartering a national bank only to issue national bank notes would not have been profitable. Indeed, new entrants issued less while banks exiting were often maximum issuers. Economies of scope between note issuing and deposit banking included shared overhead costs and the ability to reduce costs of mandatory minimum reserve and capital requirements.

    Cooperation in the Commons with Unobservable Actions

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    We model a dynamic common property resource game with unobservable actions and non-linear stock dependent costs. We propose a strategy profile that generates a worst perfect equilibrium in the punishment phase, thereby supporting cooperation under the widest set of conditions. We show under what set of parameter values for the discount rate, resource growth rate, harvest price, and the number of resource users, this strategy supports cooperation in the commons as a subgame perfect equilibrium. The strategy profile that we propose, which involves harsh punishment after a defection followed by forgiveness, is consistent with human behavior observed in experiments and common property resource case studies.Common property resource, cooperation, dynamic game, unobservable actions
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