Igor Livshits - Academia.edu (original) (raw)

Papers by Igor Livshits

Research paper thumbnail of Recent Developments in Consumer Credit and Default Literature

Journal of Economic Surveys, 2015

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Research paper thumbnail of Essays on Barriers to Growth, Strategic Behavior and Uncertainty

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Research paper thumbnail of Variance Aversion in the Small and the Large

This paper proves an analogue of Pratt's theorem for two measures of risk aversion for mean-... more This paper proves an analogue of Pratt's theorem for two measures of risk aversion for mean-variance preferences. A direct link is established between these measures and standard measures of risk aversion. Implications for problems of choice under uncertainty such as portfolio choice problems are derived. This paper establishes the equivalence of two measures of risk aversion for a general class of mean-variance preferences. It further derives implications for decision making under uncertainty, and establishes portfolio characterization of risk aversion for mean- variance preferences, which allows for comparison of agents' attitudes toward risk based on the choices they make under uncertainty. The motivation for studying mean-variance preferences is twofold: 1) they are widely used in finance; and 2) Epstein (1985) has shown that in the class of Machina's (1982) non-expected utility preferences only mean-variance preferences satisfy appropriate decreasing-absolute- ri...

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Research paper thumbnail of On non-existence of pure strategy Markov perfect equilibrium

Economics Letters, 2002

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Research paper thumbnail of The Democratization of Credit and the Rise in Consumer Bankruptcies

The Review of Economic Studies, 2016

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Research paper thumbnail of Superstores Or Mom and Pops?: Technology Adoption and Productivity Differences in Retail Trade

... Superstores or Mom and Pops? Technology Adoption and Productivity Differences in Retail Trade... more ... Superstores or Mom and Pops? Technology Adoption and Productivity Differences in Retail Trade David Lagakos Federal Reserve Bank of Minneapolis and Arizona State University ABSTRACT ————— ...

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Research paper thumbnail of Consumer Bankruptcy: A Fresh Start

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Research paper thumbnail of Screening as a Unified Theory of Delinquency, Renegotiation, and Bankruptcy

SSRN Electronic Journal, 2000

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Research paper thumbnail of Accounting for the Rise in Consumer Bankruptcies

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Research paper thumbnail of Uncertainty and the Specificity of Human Capital

This paper studies the choice between general and speciflc human capital. A trade-ofi arises beca... more This paper studies the choice between general and speciflc human capital. A trade-ofi arises because general human capital, while less productive, can easily be reallocated across flrms. Accordingly, the fraction of individuals with speciflc human capital depends on the amount of uncertainty in the economy. Our model implies that while economies with more speciflc human capital tend to be more

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Research paper thumbnail of Uncertainty and Long Term Labor Contracts

2004 Meeting Papers, 2004

This paper presents a theoretical framework in which either long-term or short-term labor contrac... more This paper presents a theoretical framework in which either long-term or short-term labor contracts arise endogenously. The fundamental trade-off is between firm specific and general human capital. While firm-specific human capital is more productive than general human capital, it cannot be reallocated in response to firm specific shocks. Firm-specific human capital is thus more attractive in environments where firms face less uncertainly about the quality of their projects. When firm-specific human capital is optimal and workers do not have access to perfect financial markets, long-term labor contracts are necessary to decentralize the first-best allocation. Within this framework, we show that `volatility,'' which has no aggregate consequences in economies with general human capital, has large and persistent negative effects in economies with long-term contracts. Volatility is modelled by an aggregate state which determines the accuracy of firms' signals about the quality of their projects. This model therefore sheds light on the sources of the recent stagnation of the Japanese economy. It also provides a rationale for Japan having adopted long-term labor contracts in the 1950's: since imitation is less uncertain than innovation, economies catching up to the frontier are well served by implementing long-term labor contracts

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Research paper thumbnail of Monopoly Rights, Dynamics and Barriers to Riches

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Research paper thumbnail of Costly Contracts and Consumer Credit

Financial innovations are a common explanation of the rise in consumer credit and bankruptcies. T... more Financial innovations are a common explanation of the rise in consumer credit and bankruptcies. To evaluate this story, we develop a simple model that incorporates two key frictions: asymmetric information about borrowers’ risk of default and a fixed cost to create each contract offered by lenders. Innovations which reduce the fixed cost or ameliorate asymmetric information have large extensive margin

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Research paper thumbnail of Sovereign Default and Banking

Several recent defaults on sovereign debt were accompanied by major bank- ing crises in the defau... more Several recent defaults on sovereign debt were accompanied by major bank- ing crises in the defaulting countries. We argue that the banking crises, trig- gered by the defaults, were due to inadequate prudential regulations, which did not recognize the riskiness of the government debt. We use a simple model of prudential regulation to illustrate this point. We further show that

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Research paper thumbnail of Accounting for the Rise in Consumer Bankruptcies. Web Appendix

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Research paper thumbnail of Monopoly Rights, Dynamics and Barriers to Riches

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Research paper thumbnail of Barriers to Technology Adoption and Entry

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Research paper thumbnail of Uncertainty, Specificity and Institutions

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Research paper thumbnail of Appendix: The Democratization of Credit and the Rise in Consumer Bankruptcies

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Research paper thumbnail of DP8580 Costly Contracts and Consumer Credit

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Research paper thumbnail of Recent Developments in Consumer Credit and Default Literature

Journal of Economic Surveys, 2015

Bookmarks Related papers MentionsView impact

Research paper thumbnail of Essays on Barriers to Growth, Strategic Behavior and Uncertainty

Bookmarks Related papers MentionsView impact

Research paper thumbnail of Variance Aversion in the Small and the Large

This paper proves an analogue of Pratt's theorem for two measures of risk aversion for mean-... more This paper proves an analogue of Pratt's theorem for two measures of risk aversion for mean-variance preferences. A direct link is established between these measures and standard measures of risk aversion. Implications for problems of choice under uncertainty such as portfolio choice problems are derived. This paper establishes the equivalence of two measures of risk aversion for a general class of mean-variance preferences. It further derives implications for decision making under uncertainty, and establishes portfolio characterization of risk aversion for mean- variance preferences, which allows for comparison of agents' attitudes toward risk based on the choices they make under uncertainty. The motivation for studying mean-variance preferences is twofold: 1) they are widely used in finance; and 2) Epstein (1985) has shown that in the class of Machina's (1982) non-expected utility preferences only mean-variance preferences satisfy appropriate decreasing-absolute- ri...

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Research paper thumbnail of On non-existence of pure strategy Markov perfect equilibrium

Economics Letters, 2002

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Research paper thumbnail of The Democratization of Credit and the Rise in Consumer Bankruptcies

The Review of Economic Studies, 2016

Bookmarks Related papers MentionsView impact

Research paper thumbnail of Superstores Or Mom and Pops?: Technology Adoption and Productivity Differences in Retail Trade

... Superstores or Mom and Pops? Technology Adoption and Productivity Differences in Retail Trade... more ... Superstores or Mom and Pops? Technology Adoption and Productivity Differences in Retail Trade David Lagakos Federal Reserve Bank of Minneapolis and Arizona State University ABSTRACT ————— ...

Bookmarks Related papers MentionsView impact

Research paper thumbnail of Consumer Bankruptcy: A Fresh Start

Bookmarks Related papers MentionsView impact

Research paper thumbnail of Screening as a Unified Theory of Delinquency, Renegotiation, and Bankruptcy

SSRN Electronic Journal, 2000

Bookmarks Related papers MentionsView impact

Research paper thumbnail of Accounting for the Rise in Consumer Bankruptcies

Bookmarks Related papers MentionsView impact

Research paper thumbnail of Uncertainty and the Specificity of Human Capital

This paper studies the choice between general and speciflc human capital. A trade-ofi arises beca... more This paper studies the choice between general and speciflc human capital. A trade-ofi arises because general human capital, while less productive, can easily be reallocated across flrms. Accordingly, the fraction of individuals with speciflc human capital depends on the amount of uncertainty in the economy. Our model implies that while economies with more speciflc human capital tend to be more

Bookmarks Related papers MentionsView impact

Research paper thumbnail of Uncertainty and Long Term Labor Contracts

2004 Meeting Papers, 2004

This paper presents a theoretical framework in which either long-term or short-term labor contrac... more This paper presents a theoretical framework in which either long-term or short-term labor contracts arise endogenously. The fundamental trade-off is between firm specific and general human capital. While firm-specific human capital is more productive than general human capital, it cannot be reallocated in response to firm specific shocks. Firm-specific human capital is thus more attractive in environments where firms face less uncertainly about the quality of their projects. When firm-specific human capital is optimal and workers do not have access to perfect financial markets, long-term labor contracts are necessary to decentralize the first-best allocation. Within this framework, we show that `volatility,'' which has no aggregate consequences in economies with general human capital, has large and persistent negative effects in economies with long-term contracts. Volatility is modelled by an aggregate state which determines the accuracy of firms' signals about the quality of their projects. This model therefore sheds light on the sources of the recent stagnation of the Japanese economy. It also provides a rationale for Japan having adopted long-term labor contracts in the 1950's: since imitation is less uncertain than innovation, economies catching up to the frontier are well served by implementing long-term labor contracts

Bookmarks Related papers MentionsView impact

Research paper thumbnail of Monopoly Rights, Dynamics and Barriers to Riches

Bookmarks Related papers MentionsView impact

Research paper thumbnail of Costly Contracts and Consumer Credit

Financial innovations are a common explanation of the rise in consumer credit and bankruptcies. T... more Financial innovations are a common explanation of the rise in consumer credit and bankruptcies. To evaluate this story, we develop a simple model that incorporates two key frictions: asymmetric information about borrowers’ risk of default and a fixed cost to create each contract offered by lenders. Innovations which reduce the fixed cost or ameliorate asymmetric information have large extensive margin

Bookmarks Related papers MentionsView impact

Research paper thumbnail of Sovereign Default and Banking

Several recent defaults on sovereign debt were accompanied by major bank- ing crises in the defau... more Several recent defaults on sovereign debt were accompanied by major bank- ing crises in the defaulting countries. We argue that the banking crises, trig- gered by the defaults, were due to inadequate prudential regulations, which did not recognize the riskiness of the government debt. We use a simple model of prudential regulation to illustrate this point. We further show that

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Research paper thumbnail of Accounting for the Rise in Consumer Bankruptcies. Web Appendix

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Research paper thumbnail of Monopoly Rights, Dynamics and Barriers to Riches

Bookmarks Related papers MentionsView impact

Research paper thumbnail of Barriers to Technology Adoption and Entry

Bookmarks Related papers MentionsView impact

Research paper thumbnail of Uncertainty, Specificity and Institutions

Bookmarks Related papers MentionsView impact

Research paper thumbnail of Appendix: The Democratization of Credit and the Rise in Consumer Bankruptcies

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Research paper thumbnail of DP8580 Costly Contracts and Consumer Credit

Bookmarks Related papers MentionsView impact