[cid:image002.png@01CEBF6B.D0B28790] VIENNA JOINT ECONOMICS SEMINAR INVITATION The University of Vienna and the Institute for Advanced Studies cordially invite you to the following Vienna Joint Economics Seminar <http://www.ihs.ac.at/vienna/resources/Economics/Papers/20130226_Paper_Zimmermann.pdf> Thursday, October 13, 2016 University of Vienna, Oskar-Morgenstern-Platz 1, 1090 Vienna, Skylounge, 12th floor 4:00 pm Benjamin Born<https://sites.google.com/site/bornecon/home> and Paul Schweinzer<http://www.uni-klu.ac.at/vwl/inhalt/902.htm> University of Bonn University of Klagenfurt Does Austerity Pay Off? (Benjamin Born) We investigate if a reduction of government consumption lowers the sovereign default premium. For this purpose we build a new data set for 38 emerging and developed economies. Results vary along three dimensions. First, the time horizon: the premium declines, but only in the long run. Second, initial conditions: the premium increases in the short run, but only if it is already high. Third, size: the short-run response of the premium increases disproportionately as government consumption is reduced. We rationalize these findings in a structural model of optimal sovereign default where default risk is priced in an actuarially fair manner. paper jointly with Gernot Müller and Johannes Pfeifer and Optimal team composition and the Apollo Syndrome (Paul Schweinzer) We model leadership, competition, and decision making in teams with heterogeneous membership composition. We show that if the choice of leadership in a team is imprecise or noisy -- which may be the case if appointment decisions are made not only by experts but also by less well-informed executives -- then it is not necessarily the case that the best individuals should be selected into a single team. On the contrary, and in line with what has been called the "Apollo effect," a team consisting of unambiguously higher performing individuals may perform worse in terms of team output than a group composed of lower performers. We characterize the properties of the leadership selection process which lead to the Apollo effect and clarify when the opposite effect -- in which supertalent teams perform better than comparatively less qualified groups -- takes place. paper jointly with Alex Gershkov We are looking forward to seeing you! Institute for Advanced Studies Josefstädter Straße 39, 1080 Vienna, Austria Tel.: +43 1 599 91 232 e-Mail: economics@ihs.ac.at<mailto:economics@ihs.ac.at> http://www.ihs.ac.at LINKS DIRECTIONS TO<https://www.google.at/maps/place/Oskar-Morgenstern-Platz+1,+1090+Wien/@48.2190435,16.3648056,17z/data=!3m1!4b1!4m2!3m1!1s0x476d07baf8c7c405:0xa66b34eb62040e97?hl=en> UNIVERSITY OF VIENNA on Google maps<https://www.google.at/maps/place/Oskar-Morgenstern-Platz+1,+1090+Wien/@48.2190435,16.3648056,17z/data=!3m1!4b1!4m2!3m1!1s0x476d07baf8c7c405:0xa66b34eb62040e97?hl=en> VIENNA JOINT ECONOMICS SEMINAR<https://www.google.com/calendar/embed?src=pjgnue7cg8r0m0up9v27riruic%40group.calendar.google.com&ctz=Europe/Vienna> on Google calendar<https://www.google.com/calendar/embed?src=pjgnue7cg8r0m0up9v27riruic%40group.calendar.google.com&ctz=Europe/Vienna> ECONOMICS SEMINARS <https://www.google.com/calendar/embed?src=o7e40khrmr1vn2lo20mhbe539g%40group.calendar.google.com&ctz=Europe/Vienna> IN VIENNA<https://www.google.com/calendar/embed?src=o7e40khrmr1vn2lo20mhbe539g%40group.calendar.google.com&ctz=Europe/Vienna> on Google calendar<https://www.google.com/calendar/embed?src=o7e40khrmr1vn2lo20mhbe539g%40group.calendar.google.com&ctz=Europe/Vienna> [cid:image003.jpg@01CEBF6B.D0B28790]<http://ihs.ac.at/> [cid:image004.jpg@01CEBF6B.D0B28790]<http://econ.univie.ac.at/home/> [http://www.ihs.ac.at/vienna/resources/Economics/Others/twitter-bird-white-on-blue.png]<https://twitter.com/IHS_Vienna>Institute for Advanced Studies @IHS_Vienna<https://twitter.com/IHS_Vienna> Diese Zusendung erfolgt entsprechend den Bestimmungen des TKG 247107. Sollten Sie keine weiteren Zusendungen wuenschen, senden Sie uns bitte eine kurze Mitteilung an: economics@ihs.ac.at<mailto:economics@ihs.ac.at>. If you do not want to receive our mailings please send an e-mail to: economics@ihs.ac.at<mailto:economics@ihs.ac.at>. Also sent to noeg-l@wu.ac.at<mailto:noeg-l@wu.ac.at> (https://mailman.wu.ac.at/mailman/listinfo/noeg-l).