the agent's motivation to perform well. Before the agent chooses his performance, the principal in our experiment decides …

intertemporal decisions. The theory has applications in areas as diverse as labour supply, savings and investment, or education and … effort. Self-confidence thus enhances motivation, and this gives a time--inconsistent individual a strong incentive to build …

or religious precepts, etc.) through which people seek to achieve self-control. Our theory is based on the idea of self …

We build a theory of prosocial behaviour that combines heterogeneity in individual altruism and greed with concerns for …

- as stressed by psychologists - in that they undermine intrinsic motivation. As a result, they may be only weak … motivation, while offers of help may create a dependence. More generally, we identify when the hidden costs of rewards are a myth …

, falling labor share and accumulation of a large foreign surplus. The theory makes only minimal deviations from a neoclassical … credit markets. Due to the financial imperfections, high-productivity firms - which are run by entrepreneurs - must be … assets, generating a foreign surplus. We test some auxiliary implications of the theory and find robust empirical support. …

In the course of ordinary business, commercial banks frequently encounter entrepreneurs seeking loans for the purpose … of financing new or continuing projects. These entrepreneurs are frequently unrealistic, their perception having been … relationship between banks and possible optimistic entrepreneurs. We examine this capital market from the stand-point of economic …