fairness ideas of equity regarding the contributions but not regarding the earnings. Individuals with different characteristics …

This paper presents a formal theory of reciprocity. Reciprocity means that people reward kind actions and punish unkind … ones. The theory takes into account that people evaluate the kindness of an action not only by its consequences but also by … the intention underlying this action. The theory explains the relevant stylized facts of a wide range of experimental …

perceived and the actual fairness of the income generation process affects this association. Building on a simple model of … individual labor-market participation under uncertainty, we predict that higher levels of perceived fairness cause higher levels …, income inequality is perceived more negatively with increased perceived fairness, due to the need for unexpected policy …

contrast an “economic-theory" perspective on optimal corrective measures with the “legalistic" perspective adopted in the SGP …

the time-path of consumption. Altruism towards parents influences incentives to default. If altruism is low, voters demand … human capital discourages investment in private and public capital. The threat of default enters as a constraint that may …

termination via prepayment or default affects optimal risk-sharing. The broad conclusion of the analysis is that potential …

default induced redistribution and costs due to income losses in the wake of a default. Their choice of short- versus long …-term debt affects default and rollover decisions by subsequent policy makers. The equilibrium maturity structure is shaped by … low, or a cross default more likely. These predictions are consistent with empirical evidence. …