CRETE 2014

Milos, July 13-17, 2014

13th Conference on Research on Economic Theory & Econometrics



Conference Program

Program in pdf


Milos Conference Center - George Eliopoulos, Milos


July 13-17, 2014

The organizers express their gratitude to the Bank of Greece, the Hellenic Bank Association and S&B Industrial Minerals for their financial support to this conference, as well as to the Municipality of Milos for financial support and hospitality and to the Economics Department of the Athens University of Economics and Business and the Foundation for Economic and Industrial Research (IOBE) for financial and administrative support.

Costas Azariadis, Harris Dellas, Yannis Ioannides, Emmanuel Petrakis,
Dimitri Vayanos and Nikos Vettas


updated July 13


SUNDAY, July 13

12:50 – 13:14  Registration - Coffee

13:14 – 13:15  Welcome

13:15 – 15:30  International and Social Interactions   Chair: Emmanuel Petrakis (Univ. of Crete)

Michael Haliassos (Goethe Univ. Frankfurt) "Incompatible European Partners? Cultural Predispositions and Household Financial Behavior" [with Thomas Jansson (Sveriges Riksbank) and Yigitcan Karabulut (Goethe Univ. Frankfurt)]

Yannis Ioannides (Tufts Univ.) "Thinking about Social Interactions and Networks, with an Application to Inequality"

Kamal Saggi (Vanderbilt Univ.) "Compulsory licensing and the protection of intellectual property" [with Eric Bond (Vanderbilt Univ.)]

Alex Monge (Federal Reserve Bank of St. Louis, Research Dept.) "Openness and the Optimal Taxation of Foreign Know-How"

15:30 – 16:00  Coffee Break

16:00 – 18:30

Parallel Session A:  Industrial Organization I   Chair: Chrysovalantou Milliou (AUEB - DIEES)

Georgia Kosmopoulou (U.S. National Science Foundation and Univ. of Oklahoma) "Auctions with Resale Opportunities: An Experimental Study" [with Chintamani Jog (Univ. of Central Oklahoma)]

Dimitrios Xefteris (Univ. of Cyprus) "Imperfectly Informed Voters and Strategic Extremism" [with Enriqueta Aragones (Institut d’'Anàlisi Econòmica-CSIC and Barcelona GSE)]

Georges Siotis (EU Commission and Carlos III - Madrid) "Of Molecules and Men: Endogenous Market Boundaries, with an Application to the Pharmaceutical Industry" [with Maria Angeles de Frutos, Micael Castanheira (ECARES, Université Libre de Bruxelles), Carmine Ornaghi (Southampton)]

Christos Constantatos (Univ. of Macedonia) "Accommodation Effects in Successive Cournot Oligopolies" [with Ioannis Pinopoulos (Univ. of Macedonia)]

Nicholas Ziros (Univ. of Cyprus) "A Spatial Model of Perfect Competition" [with Dimitrios Xefteris (Univ. of Cyprus)]

Parallel Session B:  Finance I   Chair: Nikolas Topaloglou (AUEB - DIEES)

Menelaos Karanasos (Brunel) "Modelling Returns and Volatilities during Financial Crises: A Time Varying Coefficient Approach" [with Alexandros Paraskevopoulos (Brunel), Faek Menla Ali (Brunel), Michail Karoglou (Aston Business School) and Stavroula Yfanti (Brunel)]

Christos Tsoumas (Univ. of Piraeus) "The Income Elasticity of Mortgage Loan Demand: Evidence from Loan-Level US Data" [with Manthos Delis (Univ. of Surrey) and Iftekhar Hasan (Fordham Univ. and Bank of Finland)]

Dimitris Margaritis (Univ. of Auckland) "Late Trading in Mutual Fund Shares - The Sequel" [with Moritz Wagner (Univ. of Auckland)]

George Kouretas (AUEB-BA) "Foreign Bank Ownership and Business Regulations" [with Manthos Delis (Univ. of Surrey) and Chris Tsoumas (Univ. of Piraeus)]

Romanos Priftis (EUI) "Fiscal Consolidations under Labor Market and Financial Frictions"


MONDAY, July 14

9:00 – 11:00    Macro and Integration  Chair: Christos Kotsogiannis (Univ. of Exeter)

Rachel Ngai (LSE) "Moving House" [with Kevin Sheedy (LSE)]

Elias Papaioannou (London Business School) "Federal Transfer Multipliers. Evidence from Brazilian Municipalities" [with Raphael Corbi (London Business School) and Paolo Surico (London Business School)]

Giorgia Giovannetti (Univ. of Firenze and EUI) "On the High Immigrant Skills - High Quality Trade Nexus" [with Mauro Lanati (Università di Pisa)]

Enrico Spolaore (Tufts) "What is European Integration Really About? A Political Guide for Economists"

11:00 – 11:20  Break

11:20 – 12:15  Emmanuel Drandakis Lecture   Chair: Costas Azariadis (Washington Univ., St. Louis)

Christopher Waller (Federal Reserve Bank of St. Louis) "Micro-foundations of Money: Why They Matter" 

12:15 – 13:10  Keynote Lecture on Investments   Chair: Harris Dellas (Univ. of Bern)

Ramon Marimon (EUI, UPF - Barcelona GSE, NBER and CEPR) "Breaking the Spell with Credit-Easing: Self-Confirming Credit Crises in Competitive Search Economies" [with Gaetano Gaballo (Banque de France)]

13:10 – 14:10  Lunch

14:10 – 16:40

Parallel Session A:  Econometrics   Chair: Ekaterini Kyriazidou (AUEB - Econ)

Violetta Dalla (Univ. of Athens) "Power Transformations of Absolute Returns and Long Memory Estimation"

Tassos Magdalinos (Univ. of Southampton) "Conditional Heteroskedasticity in Regression with Persistent Variables"

Katerina Petrova (Queen Mary, Univ. of London) "Local Bayesian Estimation and Forecasting with Time-Varying Parameter DSGE Models" [with Ana Beatriz Galvao (Warwick), Liudas Giraitis (Queen Mary, Univ. of London) and George Kapetanios (Queen Mary, Univ. of London)]

Kostas Florios (AUEB-DIEES and NTUA) "Exact Computation of the Maximum Score Estimator in the Ordered Response Model by Mixed Integer Programming" [with Yannis Bilias (AUEB-DIEES) and Spyros Skouras (AUEB-DIEES)]

Stelios Arvanitis (AUEB-Econ) "A CLT for Martingale Transforms with Slowly Varying Second Moments and the Limit Theory of the QMLE for Conditionally Heteroskedastic Models" [with Alexandros Louka (AUEB-Econ)]

Parallel Session B:  Applied Microeconomics:   Chair: George Economides (AUEB - DIEES)

Theofanis Tsoulouhas (Univ. of California, Merced) "Do Tournaments Solve the Adverse Selection Problem?"

George Georgiadis (Caltech) "Projects and Team Dynamics"

Antonios Proestakis (European Commission) "PEER-ACTIVE: Individual vs. Peer Rewards for Increasing Children's Physical Activity" [with Eugenia Polizzi di Sarono (EC), Sandra Caldeira (EC), Helen Brown (Cambridge), Esther van Sluijs (Cambridge) and Benedikt Herrmann (EC)]

Marina-Selini Katsaiti (United Arab Emirates Univ.) "Household Bribery and Perceptions" [with Philip Shaw (Fordham Univ.)]

16:40 – 16:50  Coffee Break

16:50 – 18:45

Parallel Session A:  Agricultural, Environmental and Food Markets   Chair: Claire Economidou (Univ. of Piraeus)

Eftichios Sartzetakis (Univ. of Macedonia) "International Environmental Agreements: An Emission Choice Model with Abatement Technology" [with Stefania Strantza (Concordia Univ.)]

Dimitrios Minos (Univ. of Goettingen) "Childhood Obesity in South Africa" [with Stephan Klasen (Univ. of Goettingen)]

Georgia Papoutsi (Agricultural Univ. of Athens) "Nudging Parental Health Behavior with and without Children's Pestering Power: Fat Tax, Subsidy or Both?" [with Rodolfo Nayga (Univ. of Arkansas), Panagiotis Lazaridis (Agricultural Univ. of Athens) and Andreas Drichoutis (Agricultural Univ. of Athens)]

Athanasios Triantafyllou (Univ. of Athens) "Volatility Forecasting in Agricultural Commodity Markets" [with George Dotsis (Univ. of Athens) and Alexandros Sarris (Univ. of Athens)]

Parallel Session B:  Macro and Public Economics   Chair: Sophia Dimelis (AUEB - Informatics)

Sofia Kalantzi (Drexel Univ.) "Fiscal Policy and Financial Frictions"

Safis-Moustafa Chatzouz (Warwick) "Government Debt and Wealth Inequality: Theory and Insights from Altruism"

Vassilis Sarantides (Univ. of Sheffield) "How Does Democracy Affect the Targeting of Government Transfers?" [with Pantelis Kammas (Univ. of Ioannina)]

Pantelis Kammas (Univ. of Ioannina) "(Tax Evasion) Power to the People: Does “Early Democratization” Increase the Size of the Informal Sector?" [with Antonis Adam (Univ. of Ioannina)]


TUESDAY, July 15

9:00 – 10:40    Economic Theory Lectures   Chair: Konstantine Gatsios (AUEB - Econ)

Jaksa Cvitanic (Caltech) "Mechanism Design for an Ignorant Planner:  Universal Mechanisms, Logarithmic Equilibrium Payoffs and Implementation" [with Drazen Prelec (MIT), Sonja Radas (The Institute of Economics, Zagreb) and Hrvoje Sikic (Univ. of Zagreb)]

Dimitri Vayanos (LSE) "Asset Management Contracts and Equilibrium Prices" [with Andrea Buffa (Boston Univ.) and Paul Woolley (LSE)]

Juuso Valimaki (Aalto Univ.) "Social Learning with Endogenous Timing" [with Pauli Murto (Aalto Univ.)]

10:40 – 11:30  Keynote Finance Lecture   Chair: Dimitri Vayanos (LSE)

John Geanakoplos (Yale) "What is so Bad about Leverage?" [with Felix Kubler (Univ. of Zurich and Swiss Finance Institute)]

11:30 – 11:45  Coffee Break

11:45 – 12:30  Keynote Macro Lecture   Chair: Sarantis Kalyvitis (AUEB - DIEES)

Hugo Hopenhayn (UCLA) "Information, Misallocation and Aggregate Productivity" [with Joel David (USC) and Venky Venkateswaran (NYU Stern)]

12:30 – 13:45  Panel discussion   Chair: Nikos Vettas (AUEB - Econ)

13:45 – 14:45  Lunch

14:45 – 16:45

Parallel Session A:  Political Economy   Chair: Fabrice Collard (Univ. of Bern)

Petros Sekeris (Univ. of Portsmouth) "Seduction and Violence in Autocratic Regimes" [with Jean-Philippe Platteau (Univ. of Namur)]

Nikos Benos (Univ. of Ioannina) "Inequality and Growth in the US states: A New Look at the Evidence" [with Stelios Karagiannis (CPER-KEPE)]

Konstantinos Matakos (LSE) "Divide and Rule: Redistribution in a Model with Differentiated Candidates" [with Dimitrios Xefteris (Univ. of Cyprus)]

George Bitros (AUEB-Econ) "Thinking Ahead of the Next Big Crash"

Parallel Session B:  Industrial Organization II   Chair: Lambros Pechlivanos (AUEB - DIEES)

Constantinos Syropoulos (Drexel Univ.) "Multimarket Collusion and the Consequences of Regional Integration" [with Delina Agnosteva (Drexel Univ.) and Yoto Yotov (Drexel Univ.)]

Effrosyni Diamantoudi (Concordia Univ.) "Decentralized Matching: The Role of Commitment" [with Eiichi Miyagawa (Kobe Univ.) and Licun Xue (McGill Univ.)]

George Deltas (Univ. of Illinois) "Product Offerings and Pricing of Vertically Differentiated Status Goods" [with Eleftherios Zacharias (AUEB-Econ)]

Myrto Kalouptsidi (Princeton) "Detection and Impact of Industrial Subsidies: The Case of World Shipbuilding"

21:00   Conference Dinner



9:00 – 11:10    Macro and Trade   Chair: Plutarchos Sakellaris (AUEB - Econ)

Stelios Michalopoulos (Brown) "Trade and Geography in the Origins and Spread of Islam" [with Alireza Naghavi (Univ. of Bologna) and Giovanni Prarolo (Univ. of Bologna)]

Costas Azariadis (Washington Univ. and Federal Reserve Bank of St. Louis) "Property Rights in Growth Theory"

Costas Arkolakis (Yale) "Trade and the Topography of the Spatial Economy" [with Treb Allen (Northwestern)]

Manolis Galenianos (Royal Holloway, Univ. of London) "The Challenge of Trade Adjustment in Greece" [with Costas Arcolakis (Yale) and Aristos Doxiadis (OpenFund)]

11:10 – 11:30  Coffee Break

11:30 – 12:30  Michael Magdalinos Lecture   Chair: Yannis Ioannides (Tufts)

Christopher Pissarides (LSE and Univ. of Cyprus) "European Labour Markets and the Eurozone Crisis"

12:30 – 13:30  Poster Session

Panagiotis Karavitis (Univ. of Cyprus) "Commodity Taxes and Capital Market Integration" [with Michael Michael (Univ. of Cyprus) and Fabio Antoniou (Humboldt Univ.)]

Paraskevi Katsiampa (Loughborough Univ.) "Introducing the ExpAR-ARCH and ExpAR-GARCH Models and Applications"

Alexandra Fotiou (Bocconi Univ.) "Bayesian Fiscal Consolidation Plans"

Theodoros Bratis (AUEB-BA) "Creditor Moral Hazard during EMU Debt Crisis" [with Nikiforos Laopodis (ALBA) and George Kouretas (AUEB-BA)]

Sotirios Kokas (Univ. of Cyprus) "Foreign Ownership and Market Power in Banking: Evidence from a World Sample" [with Manthos Delis (Univ. of Surrey) and Steven Ongena (Univ. of Zurich)]

Eleni Stathopoulou (Univ. of Leicester) "Corruption, Entry and Pollution" [with Dimitrios Varvarigos (Univ. of Leicester)]

Evangelos Salachas (AUEB-BA) "The Monetary Policy in the Euroarea, United Kingdom and the USA: Evidence from Financial Crisis Period" [with George Kouretas (AUEB-BA) and Nikiforos Laopodis (ALBA)]

Maria Varvataki (Univ. of Crete) "Welfare Improving Cartel Formation in a Union-Oligopoly Static Framework" [with Minas Vlassis (Univ. of Crete)]

13:30 – 14:15  Lunch

14:15 – 16:15

Parallel Session A:  Public Economics   Chair: Anna Hardman (Tufts)

Fabio Antoniou (Humboldt Univ.) "The Effectiveness of Taxation and Feed-In Tariffs" [with Roland Strausz (Humboldt Univ.)]

Evangelos Dioikitopoulos (Brunel) "Multiple Equilibria and Fiscal Rules for Equilibrium Selection" [with Javier Coto Martinez (Brunel)]

Rodrigo Velez (Texas A&M) "The Costs and Benefits of Symmetry in Common-Ownership Allocation Problems" [with Alexander Brown (Texas A&M)]

Alexis Anagnostopoulos (Stony Brook) "Capital Income Taxation with Household and Firm Heterogeneity" [with Orhan Erem Atesagaoglu (Stony Brook) and Eva Carceles-Poveda (Stony Brook)]

Parallel Session B:  Finance II   Chair: Stelios Bekiros (AUEB - Finance)

Spyros Pagratis (AUEB-Econ) "Bank Portfolio Choice and Regulatory Constraints" [with Jochen Mankart (Univ. of St. Gallen) and Alexander Michaelides (Imperial College, Univ. of Cyprus and CEPR)]

Konstantinos Serfes (Drexel Univ.) "Competition and Specialization: Evidence from Venture Capital" [with Christos Cabolis (ALBA) and Mian Dai (Drexel Univ.)]

Christos Cabolis (ALBA) "Do U.S. Rating Agencies Favor U.S. Firms?" [with George Allayannis (Univ. of Virginia) and Arturo Bris (IMD Business School)]

Kleopatra Nikolaou (Federal Reserve Board) "Liquidity Risk in Euro Area Money Markets" [with Vincent Brousseau (ECB) and Huw Pill (Goldman Sachs)]

16:15 – 16:30  Coffee Break

16:30 – 18:30

Parallel Session A:  Macroeconomics   Chair: Hyun Park (Kyung Hee Univ.)

Rigas Oikonomou (HEC Montreal) "The Cost of Not Being Able to Borrow: Optimal Fiscal Policy in a Multi-Country World" [with Federico Ravenna (HEC Montreal)]

Evi Pappa (EUI) "Chronicle of a War Foretold: The Macroeconomic Effects of Anticipated Defence Spending Shocks" [with Nadav Ben Zeev (Ben Gurion Univ.)]

Sophocles Mavroeidis (Oxford) "The Shadow of a Doubt: The Dynamic Impact of Expectational Uncertainty" [with Guillaume Chevillon (ESSEC Business School)]

Vanghelis Vassilatos (AUEB-Econ) "A Neoclassical Growth Model for the Insiders – Outsiders Society" [with Tryphon Kollintzas (AUEB-Econ) and Dimitris Papageorgiou (Bank of Greece)]

Parallel Session B:  International Economics   Chair: Spyros Skouras (AUEB - DIEES)

Yoto Yotov (Drexel Univ.) "Growth and Trade: A Structural Approach" [with James Anderson (Boston College) and Mario Larch (Univ. of Bayreuth)]

Mark Melatos (Univ. of Sydney) "How Does Uncertainty Affect the Choice of Trade Agreements" [with Elie Appelbaum (York Univ.)]

Anastasia Litina (Univ. of Luxembourg) "The Cultural Transmission of Environmental Preferences: Evidence from International Migration" [with Simone Moriconiy (Universita Cattolica di Milano and  Univ. of Luxembourg) and Skerdilajda Zanaj (Univ. of Luxembourg)]

Andri Chassamboulli (Univ. of Cyprus) "The Labor Market Effects of Reducing Undocumented Immigrants" [with Giovanni Peri (Univ. of California, Davis)]



9:00 – 11:00

Parallel Session A:  Public economics, games and social effects   Chair: Yannis Bilias (AUEB - DIEES)

Dimitris Christelis (CSEF) "The Impact of Social Activities on Cognitive Ageing: A Non-Parametric Bounds Analysis"

Christos Genakos (AUEB-Econ) "Experimental Evidence of Neighbourhood Effects on Education: The Case of the 2004 Athens Olympic Village" [with Elias Papaioannou (London Business School) and Yannis Polycarpou (AUEB-Econ)]

Sofronis Clerides (Univ. of Cyprus) "Designing Feebate-Like Taxation" [with Costas Hadjiyiannis (Univ. of Cyprus)]

Leonidas Spiliopoulos (Max Planck Institute for Human Development) "On the Relationship between Response Time and Decisions, Latent Beliefs, the History of Play in a Repeated Game"

Parallel Session B:  Finance III   Chair: Manthos Delis (Univ. of Surrey)

Eirini Konstantinidi (Univ. of Exeter) "How Does the Market Variance Risk Premium Vary over Time? Evidence from S&P 500 Variance Swap Investment Returns" [with George Skiadopoulos (Univ. of Piraeus and Queen Mary, Univ. of London)]

Ioannis Giotopoulos (Foundation for Economic & Industrial Research (IOBE) and Univ. of Peloponnese) "Firm Growth and Financial Constraints in Greek Services: Greater Athens vs. the Rest of Greece" [with Georgios Fotopoulos (Univ. of Peloponnese) and Alexandra Kontolaimou (NTUA)]

Spyros Galanis (Univ. of Southampton) "Dynamic Consistency and Subjective Beliefs"

Spyridon Vrontos (Univ. of Westminster) "Hedge Fund Return Predictability; To Combine Forecasts or Combine Information?" [with Ekaterini Panopoulou (Univ. of Kent)]

11:00 – 11:15  Coffee Break

11:15 – 12:00  Industrial Organization Lecture   Chair: Myrto Kalouptsidi (Princeton)

Patrick Rey (Toulouse School of Economics) "Vertical Integration as a Source of Hold-up" [with Marie-Laure Allain (Ecole Polytechnique and CREST) and Claire Chambolle (INRA and Ecole Polytechnique)]

12:00 – 12:15    Coffee Break

12:15 – 14:15

Parallel Session A:  Macro and Fiscal Policy   Chair: Vally Koubi (Univ. of Bern)

Petros Varthalitis (AUEB-Econ) "Fiscal Consolidation and its Cross-Country Effects. Is There a Conflict of Interests?" [with Apostolis Philippopoulos (AUEB-Econ and CESifo) and Vanghelis Vassilatos (AUEB-Econ)]

Eugenia Vella (EUI) "Fiscal Consolidation with Tax Evasion and Corruption" [with Evi Pappa (EUI) and Rana Sajedi (EUI)]

Anastasia Zervou (Texas A&M) "Monetary Policy Rules and the Equity Premium" [with Yulei Peng (Univ. of Arkansas)]

Afroditi Kero (Univ. of Cyprus) "Great Moderation and Great Leverage: Financial Trade and Asset Prices when Investors Disagree about Risk" [with Tobias Broer (IIES, Stockholm Univ. and CEPR)]

Parallel Session B:  Applied Microeconomics   Chair: Yannis Vrontos (AUEB - Stats)

Panagiotis Fotis (Hellenic Competition Commission) "Measuring the Magnitude of Significant Market Power in the Manufacturing and Services Industries: A Cross Country Approach" [with Michael Polemis (Univ. of Piraeus and Hellenic Competition Commission)]

Apostolos Kasapis (AUEB-Econ and ESDDA) "An Empirical Approach in Spectrum Auctions: Estimating the Demand Function in Telecommunication Industry"

Sotiris Georganas (Royal Holloway, Univ. of London) "Auctions with Speculators. An Experiment" [with Rod Garratt (UCSB)]

Rigissa Megalokonomou (Warwick) "Feedback Information and Misplacement Effects in University Admission: Evidence from a Natural Experiment" [with Sofoklis Goulas (Univ. of North Carolina)]

14:15 – 15:15  Lunch - end of the conference