Showing 1 - 10 of 55
This paper explores how a principal with time-inconsistent preferences invests optimally in technology or capital. If the current principal prefers her future self to save more, she can increase current investments complementary to future savings and decrease investments in the strategic...
Persistent link: https://www.econbiz.de/10010877709
Under conditions of risk it makes a difference whether the discount rate is determined as an expected present or as an expected future value. This difference which is dubbed as the Weitzman-Gollier puzzle has stimulated an intensive discussion which, however, is somewhat confusing. In this paper...
Persistent link: https://www.econbiz.de/10010948878
I offer a selective review of discounting and climate policy. Analytic and numerical models show that different assumptions greatly change the degree to which decisions about climate policy depend on the discount rate. I discuss a claim that standard models exaggerate the current generation’s...
Persistent link: https://www.econbiz.de/10005013940
his employer. This paper uses a principal-agent model to study optimal incentive contracts for envious workers under …
Persistent link: https://www.econbiz.de/10005765867
We find experimental evidence that the decision problem of tax compliance changes if subjects’ declarations are not … picture looks more trustworthy than average. Depending on these beliefs, they may adjust their compliance decisions. Our …
Persistent link: https://www.econbiz.de/10010690382
We study compliance dynamics generated by a large set of behavioral rules describing social interaction in a population … cheating-auditing occurs: Intensive monitoring induces compliance, but with high compliance there is incentive for lax … monitoring; with less monitoring, compliance starts decreasing, and then there is an incentive to intensify monitoring. Thus, the …
Persistent link: https://www.econbiz.de/10010764298
The implementation of European Union directives into national law is at the discretion of member states. We analyze incentives for member states to deviate from these directives when the European Commission may sue a defecting member state and rulings at the European Court of Justice (ECJ) are...
Persistent link: https://www.econbiz.de/10010627576
It is entirely appropriate that the study of public finance take seriously “behavioral” inconsistencies with traditional models of individual and collective decision-making. This raises the question of whether the state should play a role in protecting individuals from themselves, and...
Persistent link: https://www.econbiz.de/10008572563
We run a large-scale natural field experiment to evaluate alternative strategies to enforce compliance with the law … mailings, leading to a substantial increase in compliance. Among different mailing conditions a legal threat that stresses a … information about others’ behavior enhances compliance. However, the information condition has a positive effect in municipalities …
Persistent link: https://www.econbiz.de/10008583665
, implemented at the end of a three-year cycle in which contracts are generally revised, was (a) the joint outcome of negotiations …
Persistent link: https://www.econbiz.de/10010877659