Breaking the Cycle: How the News and Markets Created a Negative Feedback Loop in COVID-19
New research from CBS Professor Harry Mamaysky reveals how negativity in the news and markets can escalate a financial crisis.
New research from CBS Professor Harry Mamaysky reveals how negativity in the news and markets can escalate a financial crisis.
Adapted from “Global Value Chains in Developing Countries: A Relational Perspective from Coffee and Garments,” by Laura Boudreau of Columbia Business School, Julia Cajal Grossi of the Geneva Graduate Institute, and Rocco Macchiavello of the London School of Economics.
Adapted from “Online Advertising as Passive Search,” by Raluca M. Ursu of New York University Stern School of Business, Andrey Simonov of Columbia Business School, and Eunkyung An of New York University Stern School of Business.
This paper from Columbia Business School, “Meaning of Manual Labor Impedes Consumer Adoption of Autonomous Products,” explores marketing solutions to some consumers’ resistance towards autonomous products. The study was co-authored by Emanuel de Bellis of the University of St. Gallen, Gita Johar of Columbia Business School, and Nicola Poletti of Cada.
Co-authored by John B. Donaldson of Columbia Business School, “The Macroeconomics of Stakeholder Equilibria,” proposes a model for a purely private, mutually beneficial financial agreement between worker and firm that keeps decision-making in the hands of stockholders while improving the employment contract for employees.
At Columbia Business School, our faculty members are at the forefront of research in their respective fields, offering innovative ideas that directly impact the practice of business today. A quick glance at our publication on faculty research, CBS Insights, will give you a sense of the breadth and immediacy of the insight our professors provide.
As a student at the School, this will greatly enrich your education. In Columbia classrooms, you are at the cutting-edge of industry, studying the practices that others will later adopt and teach. As any business leader will tell you, in a competitive environment, being first puts you at a distinct advantage over your peers. Learn economic development from Ray Fisman, the Lambert Family Professor of Social Enterprise and a rising star in the field, or real estate from Chris Mayer, the Paul Milstein Professor of Real Estate, a renowned expert and frequent commentator on complex housing issues. This way, when you complete your degree, you'll be set up to succeed.
Columbia Business School in conjunction with the Office of the Dean provides its faculty, PhD students, and other research staff with resources and cutting edge tools and technology to help push the boundaries of business research.
Specifically, our goal is to seamlessly help faculty set up and execute their research programs. This includes, but is not limited to:
All these activities help to facilitate and streamline faculty research, and that of the doctoral students working with them.
Consider a renewal process {Xn, n ≥ 1} for which there is defined an associated sequence of independent and identically distributed random variables {Bn, n ≥ 1} such that Bn is the length of a subinterval of Xn. We show that when attention is restricted only to B-intervals, the asymptotic joint distribution of the residual life and total life of a B-interval is that of a renewal process generated by {Bn, n ≥ 1}.
Reprinted in Advances in Financial Economics: Volume I (Theory), Bhattacharya and Constantinides (editors), Roman and Allenhead publishers 1986.
Over the years, there has developed a fairly substantial body of research on the time series of earnings. As a whole, this literature concludes that changes in (annual) accounting earnings are unpredictable, that is, earnings follow a "random walk." Based on this result, some inferences of economic substance (policy) have been claimed. In this paper we reconsider empirical issues which, at least to some extent, have been obscured by this conclusion.
The currently fashionable credit scoring systems are described and subjected to critical analysis. Public policy issues concerning the use of these systems are discussed.
Reviews several books on marketing. "Cases in Public and Nonprofit Marketing," by Christopher H. Lovelock and Charles B. Weinberg; "Marketing for Nonprofit Organization," by Philiph Kotler; "Marketing for Nonprofit Organization," David L. Rados.
This paper is a theoretical investigation of equilibrium forward and futures prices. We construct a rational expectations model in continuous time of a multigood, identical consumer economy with constant stochastic returns to scale production. Using this model we find three main results. First, we find formulas for equilibrium forward, futures, discount bond, commodity bond and commodity option prices.
The cost of external equity capital is higher than the investor-required rate of return because of flotation costs (underwriting expenses and underpricing). Recognizing this, regulatory agencies have generally included an allowance for flotation costs in the authorized cost of capital. The adjustment for flotation costs can have a significant effect on the firm and its consumers.
Focuses on a theory and test of credit rationing. Lending behavior under a fixed interest rate; leverage terms under risk aversion.
This paper considers the solution of Markov decision problems whose parameters can be obtained only via approximating schemes, or where it is computationally preferable to approximate the parameters, rather than employing exact algorithms for their computation. Various models are presented in which this situation occurs. Furthermore, it is shown that a modified value-iteration method may be employed, both for the discounted version and for the undiscounted version of the model, in order to solve the optimality equation and to find optimal policies.
Recent papers have shown that Π∞k = 1 P(k) = limm→∞ (P(m) ... P(1)) exists whenever the sequence of stochastic matrices {P(k)}∞k = 1 exhibits convergence to an aperiodic matrix P with a single subchain (closed, irreducible set of states). We show how the limit matrix depends upon P(1).
For the multi-server queue with Poisson arrivals and general service times we present various approximations for the steady-state probabilities of the queue size. These approximations are computed from numerically stable recursion schemes which can be easily applied in practice. Numerical experience reveals that the approximations are very accurate with errors typically below 5%. For the delay probability the various approximations result either into the widely used Erlang delay probability or into a new approximation which improves in many cases the Erlang delay probability approximation.
The article presents several lender supply and borrower demand conditions for a leverage structure of interest rates. The paper presents a model of the credit transaction between individuals embedded in a competitive credit market. In this model, the individual has to decide on the optimal allocation of his initial investible capital K, among a risk asset with random rate of return R-1 available to all investors, a riskless asset with return s-1 and lending to or borrowing from another individual. Short sales of the risk asset are not permitted.
This paper demonstrates that it will be impossible, by observing an agent's demand behavior, to either refute or confirm the general taste change hypothesis without substantially restricting the class of eligible preferences.
This paper demonstrates that it will be impossible, by observing an agent's demand behavior, to either refute or confirm the general taste change hypothesis without substantially restricting the class of eligible preferences.
The Arrow-Debreu intertemporal general equilibrium paradigm is typically interpreted as suggesting that contingent claims markets need not reopen as time passes and uncertainty resolves. We show that this property, if satisfied, has strong implications for the structure of agents' preferences and for the updating of probabilistic beliefs.
The Arrow-Debreu intertemporal general equilibrium paradigm is typically interpreted as suggesting that contingent claims markets need not reopen as time passes and uncertainty resolves. We show that this property, if satisfied, has strong implications for the structure of agents' preferences and for the updating of probabilistic beliefs.
We examine the relative effects of several service order disciplines on important operating characteristics of queues in which customers request a random number of servers. This class of queues is characterized by customers who cannot begin service until all required servers are available. We show that for many systems in this class, it is possible to define a new service order disciplien which is more efficient than FIFO with respect to one or more measures such as expected waiting time, probability of delay, etc.
Analysis of state and privately owned enterprises in industrialized market economies leads to the identification of differences in objectives and strategy between the two enterprise types. A series of propositions is developed that contrasts the behavior of state and privately owned corporations.
Subjects at four age levels (kindergarten, fourth grade, eighth grade, and college) made preference judgments for a set of consumer products varying on four dimensions. Though product preferences reflected independently assessed dimension ratings, subjects had preferences on more dimensions than they took into account in the product ratings. Not until late adolescence did subjects integrate their preferences on two or more dimensions.
We consider the Policy Iteration Algorithm for undiscounted Markov Renewal Programs. Previous specifications of the policy evaluation part of this algorithm all required the analysis of the chain structure for each policy generated. The purpose of this paper is to provide a unique specification of the value sectors as well as an anticycling rule which avoids parsing the transition probability matrices into their subchains.
Several propositions concerning the effect of individual, product class, and task-related factors on information-acquisition strategies were formulated and tested. Marked differences were found for subjects at different socioeconomic levels. A new scheme for analyzing information-acquisition sequence data was developed and employed.
This paper considers two-person zero-sum sequential games with finite state and action spaces. We consider the pair of functional equations (f.e.) that arises in the undiscounted infinite stage model, and show that a certain class of successive approximation schemes is guaranteed to converge to a solution pair whenever an equilibrium policy with respect to the average return per unit time criterion (AEP) exists. Existence of the latter thus implies the existence of a solution to this pair of f.e. whereas the converse implication is shown only to hold under special circumstances.
This paper examines the hypothesis that the expected rate of return to speculation in the forward foreign exchange market is zero; that is, the logarithm of the forward exchange rate is the market's conditional expectation of the logarithm of the future spot rate. A new computationally tractable econometric methodology for examining restrictions on a k-step-ahead forecasting equation is employed. Using data sampled more finely than the forecast interval, we are able to reject the simple market efficiency hypothesis for exchange rates from the 1970s and the 1920s.
This article focuses on the formulation of a method to solve the joint consumption-portfolio problem. The formulation presented allows the author to distinguish between risk preferences and time preferences when determining optimal consumption and asset demand. Classic Fisherian two-period diagrammatics are generalized. Period-two risk preferences are assumed to be independent of first-period consumption. The set of consumption-portfolio optima is expanded consistently with utility maximization.
This paper presents a simple and computationally tractable method which recursively computes the stationary probabilities of the queue size in an M/G/1 queueing system with variable service rate. For each service two possible service types are available and the service rule is characterized by two switch-over levels. The computational approach discussed in this paper can be applied to a variety of queueing problems.
We consider a multiserver queueing system in which customers request service from a random number of identical servers. In contrast to batch arrival queues, customers cannot begin service until all required servers are available. Servers assigned to the same customer may free separately. For this model, we derive the steady-state distribution for waiting time, the distribution of busy servers, and other important measures. Sufficient conditions for the existence of a steady-state distribution are also obtained.
This paper assesses the ability of markets to convey information about firms to investors. The present system of disclosure rules has been restricted to historical data. Recently there have been proposals to bring predictive data—in particular, earnings forecasts—under the scope of a disclosure rule. Forecasts of future earnings are, at present, being provided by many corporate managements.
This paper considers undiscounted two-person, zero-sum sequential games with finite state and action spaces. Under conditions that guarantee the existence of stationary optimal strategies, we present two successive approximation methods for finding the optimal gain rate, a solution to the optimality equation, and for any ϵ > 0, ϵ-optimal policies for both players.
This paper establishes a rather complete optimality theory for the average cost semi-Markov decision model with a denumerable state space, compact metric action sets and unbounded one-step costs for the case where the underlying Markov chains have a single ergotic set.
This paper discusses the structural equations, forecasting properties, dynamic characteristics, and economic policy implications of a quarterly econometric model of U.S. livestock and feedgrain markets. Quarterly, semi-annual, and annual endogenous variables are incorporated by allowing individual structural equations to be estimated and to enter into the solution of the model with different periodicities. Commodity prices are determined by market equilibrium conditions rather than by autoregressive and other time-series techniques.
This paper discusses the structural equations, forecasting properties, dynamic characteristics, and economic policy implications of a quarterly econometric model of U.S. livestock and feedgrain markets. Quarterly, semi-annual, and annual endogenous variables are incorporated by allowing individual structural equations to be estimated and to enter into the solution of the model with different periodicities. Commodity prices are determined by market equilibrium conditions rather than by autoregressive and other time-series techniques.
This paper considers undiscounted Markov decision problems. With no restriction (on either the periodicity or chain structure of the problem) we show that the value iteration method for finding maximal gain policies exhibits a geometric rate of convergence, whenever convergence occurs. In addition, we study the behaviour of the value-iteration operator; we give bounds for the number of steps needed for contraction, describe the ultimate behaviour of the convergence factor and give conditions for the existence of a uniform convergence rate.
Consumer information programs can be more effective if they are conceived within a marketing framework which views consumer information as a product to be marketed. A methodology is outlined which can assist consumer information program developers in identifying information needs from the consumer's point of view, rather than the policy maker's.