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Bask, Mikael
Publications (9 of 9) Show all publications
Bask, M. & Bask, M. (2015). Cumulative (Dis) Advantage and the Matthew Effect in Life-Course Analysis. PLoS ONE, 10(11), Article ID e0142447.
Open this publication in new window or tab >>Cumulative (Dis) Advantage and the Matthew Effect in Life-Course Analysis
2015 (English)In: PLoS ONE, ISSN 1932-6203, E-ISSN 1932-6203, Vol. 10, no 11, e0142447Article in journal (Refereed) Published
Abstract [en]

To foster a deeper understanding of the mechanisms behind inequality in society, it is crucial to work with well-defined concepts associated with such mechanisms. The aim of this paper is to define cumulative (dis) advantage and the Matthew effect. We argue that cumulative (dis) advantage is an intra-individual micro-level phenomenon, that the Matthew effect is an inter-individual macro-level phenomenon and that an appropriate measure of the Matthew effect focuses on the mechanism or dynamic process that generates inequality. The Matthew mechanism is, therefore, a better name for the phenomenon, where we provide a novel measure of the mechanism, including a proof-of-principle analysis using disposable personal income data. Finally, because socio-economic theory should be able to explain cumulative (dis) advantage and the Matthew mechanism when they are detected in data, we discuss the types of models that may explain the phenomena. We argue that interactions-based models in the literature traditions of analytical sociology and statistical mechanics serve this purpose.

National Category
Economics and Business Sociology
Identifiers
urn:nbn:se:uu:diva-272276 (URN)10.1371/journal.pone.0142447 (DOI)000365865300018 ()
Funder
Swedish Research CouncilWenner-Gren Foundations
Available from: 2016-01-18 Created: 2016-01-13 Last updated: 2017-11-30Bibliographically approved
Bask, M. (2014). A Case for Interest Rate Inertia in Monetary Policy. International journal of finance and economics, 19(2), 140-159.
Open this publication in new window or tab >>A Case for Interest Rate Inertia in Monetary Policy
2014 (English)In: International journal of finance and economics, ISSN 1076-9307, E-ISSN 1099-1158, Vol. 19, no 2, 140-159 p.Article in journal (Refereed) Published
Abstract [en]

We argue that it is not necessary for the central bank to react to the exchange rate to have a desirable outcome in the economy. Indeed, when the Taylor rule includes contemporaneous data on the variables in the rule, the central bank can disregard from the exchange rate as long as there is enough with interest rate inertia in monetary policy. The reason is that interest rate inertia and a reaction to the current nominal exchange rate change are perfect substitutes in monetary policy. Hence, we give a rationale for the central bank to focus on the interest rate change rather than the interest rate level to have a desirable outcome in the economy, which we define as a determinate rational expectation equilibrium that is stable under least squares learning.

National Category
Economics
Identifiers
urn:nbn:se:uu:diva-185569 (URN)10.1002/ijfe.1470 (DOI)000334544800004 ()
Available from: 2012-11-26 Created: 2012-11-26 Last updated: 2017-12-07Bibliographically approved
Bask, M. & Bask, M. (2014). Social influence and the Matthew mechanism: The case of an artificial cultural market. Physica A: Statistical Mechanics and its Applications, 412, 113-119.
Open this publication in new window or tab >>Social influence and the Matthew mechanism: The case of an artificial cultural market
2014 (English)In: Physica A: Statistical Mechanics and its Applications, ISSN 0378-4371, E-ISSN 1873-2119, Vol. 412, 113-119 p.Article in journal (Refereed) Published
Abstract [en]

We show that the Matthew effect, or Matthew mechanism, was present in the artificial cultural market Music Lab in one-fourth of the "worlds" when social influence between individuals was allowed, whereas this effect was not present in the "world" that disallowed social influence between individuals. We also sketch on a class of social network models, derived from social influence theory, that may generate the Matthew effect. Thus, we propose a theoretical framework that may explain why the most popular songs could be much more popular, and the least popular songs could be much less popular, than when disallowing social influence between individuals.

Keyword
Matthew effect, Music Lab, Social influence, Social network
National Category
Economics Social Sciences Interdisciplinary
Identifiers
urn:nbn:se:uu:diva-232567 (URN)10.1016/j.physa.2014.06.039 (DOI)000340692700011 ()
Available from: 2014-09-24 Created: 2014-09-22 Last updated: 2018-01-11Bibliographically approved
Bask, M. & Bask, M. (2013). Social Influence and the Matthew Mechanism: The Case of an Artificial Cultural Market. Uppsala.
Open this publication in new window or tab >>Social Influence and the Matthew Mechanism: The Case of an Artificial Cultural Market
2013 (English)Report (Other academic)
Abstract [en]

We show that the Matthew effect, or Matthew mechanism, was present in the artificial cultural market Music Lab when social influence between individuals was allowed, whereas this was not the case when social influence was not allowed. We also sketch on a class of social network models, derived from social influence theory, that may gener-ate the Matthew effect. Thus, we propose a theoretical framework that may explain why the most popular songs were much more popular, and the least popular songs were much less popular, than when disallowing social influence between individuals.

Place, publisher, year, edition, pages
Uppsala: , 2013. 13 p.
Series
Working paper / Department of Economics, Uppsala University (Online), ISSN 1653-6975 ; 2013:11
Keyword
Matthew effect, Music Lab, social influence, social network
National Category
Economics
Research subject
Economics
Identifiers
urn:nbn:se:uu:diva-202761 (URN)
Available from: 2013-06-26 Created: 2013-06-26 Last updated: 2017-07-12Bibliographically approved
Bask, M. (2012). Asset price misalignments and monetary policy. International journal of finance and economics, 17(3), 221-241.
Open this publication in new window or tab >>Asset price misalignments and monetary policy
2012 (English)In: International journal of finance and economics, ISSN 1076-9307, E-ISSN 1099-1158, Vol. 17, no 3, 221-241 p.Article in journal (Refereed) Published
Abstract [en]

We augment the standard New Keynesian Model for monetary policy design with stock prices in the economy and stock traders who use a mix of fundamental and technical analyses. In contrast with most of previous literature, we argue that the central bank should augment the interest rate rule with a term for stock price misalignments because a determinate and stable rational expectations equilibrium in the economy are then easier to achieve. This equilibrium is stable under least squares learning as well. Another finding is that inertia in monetary policy does not promote macroeconomic stability when technical analysis plays a major role in stock trading. Even worse, if the central bank in its policy only indirectly responds to stock price misalignments via its effect on the inflation rate, a combination of strong inertia in monetary policy and a significant role for technical analysis in stock trading will lead to macroeconomic instability.

Keyword
Bubble policy, fundamental analysis, interest rate rule, least squares learning, macroeconomic stability, stock price bubble, Taylor rule, technical analysis
National Category
Economics and Business
Identifiers
urn:nbn:se:uu:diva-178563 (URN)10.1002/ijfe.450 (DOI)000305001500002 ()
Available from: 2012-07-31 Created: 2012-07-31 Last updated: 2017-12-07Bibliographically approved
Assarsson, B. & Bask, M. (2012). En granskning av Goodharts och Rochets utvärdering av Riksbankens politik. Ekonomiska samfundets tidskrift, 65(2), 63-71.
Open this publication in new window or tab >>En granskning av Goodharts och Rochets utvärdering av Riksbankens politik
2012 (Swedish)In: Ekonomiska samfundets tidskrift, ISSN 0013-3183, E-ISSN 2323-1378, Vol. 65, no 2, 63-71 p.Article, review/survey (Refereed) Published
Abstract [en]

This paper reviews Charles Goodhart's and Jean-Charles Rochet's evaluation of the policy of the Swedish Riksbank during 2005-2010. A merit in the evaluation is that it advocates macro and not only micro prudential policies in the preventive efforts to support a stable financial system. However, we are critical about the lack of discussion on the presently weak basis of the economic theory of prudential policies. This calls for a precautionary principle in the design and implementation of reform. When it comes to monetary policy, there should have been a careful analysis of the divergence of opinion among the members of the Board of Governors, which is almost completely disregarded by the evaluaters. It seems that the decisions in the Riksbank have been characterized by an obvious bias towards too low inflation during the evaluation period.

National Category
Social Sciences
Identifiers
urn:nbn:se:uu:diva-187932 (URN)
Available from: 2012-12-12 Created: 2012-12-12 Last updated: 2017-12-07Bibliographically approved
Bask, M. & Proaño, C. R. (2012). Optimal Monetary Policy under Learning in a New Keynesian Model with Cost Channel and Inflation Inertia. Uppsala: Department of Economics, Uppsala University.
Open this publication in new window or tab >>Optimal Monetary Policy under Learning in a New Keynesian Model with Cost Channel and Inflation Inertia
2012 (English)Report (Other academic)
Abstract [en]

We show that a so-called expectations-based optimal monetary policy rule has desirable properties in a standard New Keynesian model augmented with a cost channel and inflation rate expectations that are partly backward-looking. In particular, optimal monetary policy under commitment is associated with a determinate rational expectations equilibrium that is stable under least squares learning for all parameter constellations considered, whereas, under discretion in policy-making, the central bank has to be sufficiently inflation rate averse for the rational expectations equilibrium to have the same properties.

Place, publisher, year, edition, pages
Uppsala: Department of Economics, Uppsala University, 2012. 24 p.
Series
Working paper / Department of Economics, Uppsala University (Online), ISSN 1653-6975 ; 2012:7
Keyword
Commitment; Cost Channel; Determinacy; Discretion; Inflation
National Category
Economics
Research subject
Economics
Identifiers
urn:nbn:se:uu:diva-170436 (URN)
Available from: 2012-03-13 Created: 2012-03-12 Last updated: 2012-03-13Bibliographically approved
Bask, M. & Widerberg, A. (2010). Measuring the Stability of a Dynamic System: The Case of the Stock Market Turmoil 2007-2008. Uppsala: Department of Economics, Uppsala University.
Open this publication in new window or tab >>Measuring the Stability of a Dynamic System: The Case of the Stock Market Turmoil 2007-2008
2010 (English)Report (Other academic)
Abstract [en]

The aim of this paper is to demonstrate how the change in actual and potential market risks in the Dow Jones Industrial Average (DJIA) during the two-year period 2007-2008 can be analyzed with the help of (λ, σ2)-analysis. In the empirical analysis, the average of the Lyapunov exponents for the dynamic system generating DJIA returns is used as the stability measure, , whereas the squared DJIA return is used as the variability measure, λ, whereas the squared DJIA return is used as the variability measure, σ2. The main findings are as follows: (i) the potential market risk in the DJIA did not fluctuate that much during 2007, with the exceptions of early fall and near the end of the year; (ii) the potential market risk fluctuated a lot during 2008, especially in early August and in the middle of September; and (iii) the actual market risk in the DJIA was considerably higher near the end of 2008, especially in October, compared with the rest of the period.

Place, publisher, year, edition, pages
Uppsala: Department of Economics, Uppsala University, 2010. 20 p.
Series
Working paper / Department of Economics, Uppsala University (Online), ISSN 1653-6975 ; 2010:25
Keyword
Dow Jones; Financial Crisis; Lyapunov Exponents; Market Risk; Potential Market Risk; Stability;
National Category
Economics
Identifiers
urn:nbn:se:uu:diva-161741 (URN)
Available from: 2011-11-17 Created: 2011-11-17 Last updated: 2011-11-17Bibliographically approved
Bask, M. (1998). Essays on Exchange Rates: Deterministic Chaos and Technical Analysis. (Doctoral dissertation). -.
Open this publication in new window or tab >>Essays on Exchange Rates: Deterministic Chaos and Technical Analysis
1998 (English)Doctoral thesis, comprehensive summary (Other academic)
Place, publisher, year, edition, pages
-, 1998
Series
Umeå Economic Studies, 465
National Category
Economics
Identifiers
urn:nbn:se:uu:diva-186881 (URN)
Public defence
1998-06-02, Umeå, 10:15 (English)
Opponent
Supervisors
Available from: 2012-12-07 Created: 2012-11-29 Last updated: 2012-12-07Bibliographically approved
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