Bank Opacity and Endogenous Uncertainty

Presentada comunicación en el Barcelona GSE Winter Workshop on Microeconomics, celebrado el 18 de diciembre de 2013 en Barcelona (España). Presentada comunicación en la European Economic Association & Econometric Society, 2014 Parallel Meetings, celebrados del 25 al 29 de agosto de 2014 en Toulose (Francia)Why are banks opaque? Is there a need for policy? What is the optimal level of bank transparency? In this model, banks are special because the product they are selling is superior information about investment opportunities. Intransparent balance sheets turn this public good into a marketable private commodity. Voluntary public disclosure of this information translates into a competitive disadvantage. Bank competition results in a "race to the bottom" which leads to complete bank opacity and a high degree of aggregate uncertainty for households. Households do value public information as it reduces aggregate uncertainty, but the market does not punish intransparent banks. Policy measures can improve upon this market outcome by imposing minimum disclosure requirements on banks. Complete disclosure is socially undesirable as this eliminates all private incentives for banks to acquire costly information. The social planner chooses optimal bank transparency by trading off the benefits of reducing aggregate uncertainty for households against banks' incentives for costly information acquisitionPeer Reviewe

Characterizing Political Talk on Twitter: A Comparison Between Public Agenda, Media Agendas, and the Twitter Agenda with Regard to Topics and Dynamics

Social media platforms, especially Twitter, have become a ubiquitous element in political campaigns. Although politicians, journalists, and the public increasingly take to the service, we know little about the determinants and dynamics of political talk on Twitter. We examine Twitter’s issue agenda based on popular hashtags used in messages referring to politics. We compare this Twitter agenda with the public agenda measured by a representative survey and the agendas of newspapers and television news programs captured by content analysis. We show that the Twitter agenda had little, if any, relationship with the public agenda. Political talk on Twitter was somewhat stronger connected with mass media coverage, albeit following channel-specific patterns most likely determined by the attention, interests, and motivations of Twitter users

More than opinion expression: Secondary effects of intraparty referendums on party members

As political parties expand opportunities for intraparty participation, understanding the effects of participatory events on party actors becomes ever more important. In this study, we investigate the consequences of an intraparty referendum in a state branch of Germany’s Christian Democratic Union on beliefs and attitudes of party members. We use longitudinal survey data bracketing a nonbinding issue referendum on the party’s stance on same-sex marriage. Our analysis shows that the referendum had secondary effects that went beyond the referendum’s primary goal of delivering an informal opinion poll to the party leadership. The experience of having a say in an important policy decision fostered members’ sense of party-specific efficacy. Furthermore, the referendum provided party members with information on elite positions and stimulated leadership evaluation based on issue congruency. Altogether, involvement in intraparty decision-making promotes beliefs and behaviors among the rank and file that are relevant to uphold a vivid and empowering party life

Trump vs. Hillary: What went Viral during the 2016 US Presidential Election

In this paper, we present quantitative and qualitative analysis of the top retweeted tweets (viral tweets) pertaining to the US presidential elections from September 1, 2016 to Election Day on November 8, 2016. For everyday, we tagged the top 50 most retweeted tweets as supporting or attacking either candidate or as neutral/irrelevant. Then we analyzed the tweets in each class for: general trends and statistics; the most frequently used hashtags, terms, and locations; the most retweeted accounts and tweets; and the most shared news and links. In all we analyzed the 3,450 most viral tweets that grabbed the most attention during the US election and were retweeted in total 26.3 million times accounting over 40% of the total tweet volume pertaining to the US election in the aforementioned period. Our analysis of the tweets highlights some of the differences between the social media strategies of both candidates, the penetration of their messages, and the potential effect of attacks on bothComment: Paper to appear in Springer SocInfo 201

Elite Tweets: Analysing the Twitter Communication Patterns of Labour Party Peers in the House of Lords

The micro-blogging platform Twitter has gained notoriety for its status as both a communication channel between private individuals, and as a public forum monitored by journalists, the public, and the state. Its potential application for political communication has not gone unnoticed; politicians have used Twitter to attract voters, interact with constituencies and advance issue-based campaigns. This article reports on the preliminary results of the research team’s work with 21 peers sitting on the Labour frontbench. It is based on the monitoring and archival of the peers’ activity on Twitter for a period of 100 days from 16th May to 28th September 2012. Using a sample of more than 4,363 tweets and a mixed methodology combining semantic analysis, social network analysis and quantitative analysis, this paper explores the peers’ patterns of usage and communication on Twitter. Key findings are that as a tweeting community their behavior is consistent with others, however there is evidence that a coherent strategy is lacking. Labour peers tend to work in ego networks of self-interest as opposed to working together to promote party polic

Dual Screening the Political:Media Events, Social Media, and Citizen Engagement

Dual screening—the complex bundle of practices that involve integrating, and switching across and between, live broadcast media and social medi—is now routine for many citizens during important political media events. But do these practices shape political engagement, and if so, why? We devised a unique research design combining a large-scale Twitter dataset and a custom-built panel survey focusing on the broadcast party leaders’ debates held during the 2014 European Parliament elections in the United Kingdom. We find that relatively active, “lean-forward” practices, such as commenting live on social media as the debate unfolded, and engaging with conversations via Twitter hashtags, have the strongest and most consistent positive associations with political engagement

I read it on reddit: Exploring the role of online communities in the 2016 US elections news cycle

Reddit has developed into a significant platform for political discussion among Millennials. In this exploratory study, we examine subscription trends on three political sub-forums on Reddit during the 2016 US presidential elections: /The_Donald, /SandersForPresident, and /HillaryClinton. As a theoretical framework, we draw from work on online communities’ group identity and cohesion. Concretely, we investigate how subscription dynamics relate to positive, negative and neutral news events occurring during the election cycle. We classify news events using a sentiment analysis of event-related news headlines. We observe that users who supported Sanders displayed no consolidation of support for Clinton after she won the Democratic Party’s presidential nomination. Secondly, we show that negative news events affected Sanders and Clintons subscription trends negatively, while showing no effect for Donald Trump. This gives empirical credence to Trump’s controversial claim that he could “stand in the middle of 5th Avenue and shoot somebody and not lose any voters”. We offer a number of explanations for the observed phenomena: the nature of the content of the three subreddits, their cultural dynamics, and changing dynamics of partisanship. We posit that the ‘death of expertise’ expresses itself on Reddit as a switch in persuasion tactics from a policy-based to an emotions-based approach, and that group members’ agreement on policy proved a weak marker for online communities’ group identity and cohesion. We also claim that strong partisanship coupled with weak party affiliation among Millennials contributed to the low levels of Democratic support consolidation after Clinton won the nomination