Suchergebnisse

This paper pioneers to investigate the endowment effect in the European Union mission Trading Scheme (EU ETS) as well as the impacts of trading experience and compliance pressure on the endowment effect. This study is based on the complete transaction records of the market. In the data set, the records of two consecutive reverse transactions from a same emitting company are selected. The lowest price that the buyer is willing to pay (WTP) and the maximum price the seller is willing to accept (WTA) are evaluated by excluding their risk cost that is used to avoid short-term fluctuations in the price. By distinguishing the difference between WTA and WTP, and long-term fluctuations in the prices during the two transactions, the trader's endowment effect can be quantitively assessed. The results show that the degree of endowment effect of traders follows the trading experience. In addition, since the EU ETS is a cap-and-trade market, the traders face different levels of compliance pressure; when the pressure of the emission companies increases, the degree of endowment effect will also decrease.

Abstract
Governments have proposed various policy responses to contain the spread of coronavirus disease 2019, but there is little available knowledge about how these policies are formulated. Here we quantify the herding effect in the pandemic containment policies issued by governments of different regions during the period of 18 January 2020 to 29 May 2020, using a modified Lakonishok–Shleifer–Vishny approach. The results show that all the policies exhibit some degree of herding, and the policy herding in the USA is significantly stronger than that of China but weaker than that of the rest of the world. Specifically, the overall herding intensity in the policy responses of the Northern China is greater than that of the Southern China. We believe that policy herding is linked with risk aversion, which is triggered by perceived uncertainty associated with significant risk events. This work highlights the significance of resource sufficiency and preparedness.