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We propose a theoretical framework to study the determinants of ethnic and religious identity along two distinct motivational processes: cultural distinction and cultural conformity. Under cultural conformity, ethnic identity is reduced by neighborhood integration, which weakens group loyalties and prejudices. On the contrary, under cultural distinction,(More)
We study labor-market discrimination of individuals with " specific " characteristics in Italy. We conduct a field experiment in two Italian cities: Rome and Milan, by sending " fake " CVs to real ads. We find that there is a strong penalty for homosexuals, i.e., about 30 % less chance to be called back compared to a heterosexual male and even more so if(More)
We study the profitability of traders in two fully electronic and highly liquid markets: the Dow and Standard & Poor's 500 e-mini futures markets. Using unique information that identify counterparties to a transaction, we show and seek to explain the fact that the network pattern of trades captures the relations between behavior in the market and returns.(More)
JEL classification: A14 D85 Z13 Keywords: Social networks Identification of peer effects J test Individual-based policy Group-based policy a b s t r a c t We develop a unified model embedding different behavioral mechanisms of social interactions and design a statistical model selection test to differentiate between them in empirical applications. This(More)
This paper proposes a model of network interactions in the interbank market. Our innovation is to model systemic risk in the interbank network as the propagation of incentives or strategic behavior rather than the propagation of losses after default. Transmission in our model is not based on default. Instead, we explain bank profitability based on(More)
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