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Schnellenbach, Jan; Schubert, Christian - CESifo - 2014

Explaining individual behavior in politics should rely on the same motivational assumptions as explaining behavior in the market: That’s what Political Economy, understood as the application of economics to the study of political processes, is all about. In its standard variant, those who...

Persistent link: https://www.econbiz.de/10010948848

Towards Behavioral Political Economy of Institutional Change: With Field Facts from China

Zhang, Yongjing; Wang, Mei - CESifo - 2014

This study proposes an analytical framework towards behavioral political economy of institutional change. It considers institutional changes as central government’s choices under uncertainty, which are largely driven by the strategic outcomes in a behavioral coordination game between local...

Persistent link: https://www.econbiz.de/10010948883

Gambling to Leapfrog in Status?

Friehe, Tim; Mechtel, Mario - CESifo - 2013

This paper shows that households with positional concerns and convex status utility use gambling to attempt leapfrogging in the social hierarchy. We test this theoretical prediction relying on household data that is representative for Germany, proxying the status orientation of households by...

Persistent link: https://www.econbiz.de/10010634081

Taxing Sin Goods and Subsidizing Health Care

Cremer, Helmuth; Donder, Philippe De; Maldonado, Darío; … - CESifo - 2008

. The sin good brings pleasure but has a detrimental effect on second period health and individuals tend to underestimate … this effect. In the second period, individuals can devote part of their saving to improve their health status and thus … period health care decision: either individuals acknowledge that they have made a mistake in the first period out of myopia …

Persistent link: https://www.econbiz.de/10005765813

Pawns and Queens Revisited: Public Provision of Private Goods when Individuals make Mistakes

Pirttilä, Jukka; Tenhunen, Sanna - CESifo - 2005

This paper analyses the optimal tax policy and public provision of private goods when individuals differ in two respects: income-earning ability and rationality. Publicly provided goods should be overprovided or subsidised, relative to the decentralised optimum, if society’s marginal valuation...

Persistent link: https://www.econbiz.de/10005765898

Optimal Redistributive Taxation when Government’s and Agents’ Preferences Differ

Blomquist, Sören; Micheletto, Luca - CESifo - 2005

Paternalism, merit goods and specific egalitarianism are concepts we sometimes meet in the literature. The thing in common is that the policy maker does not fully respect the consumer sovereignty principle and designs policies according to some other criterion than individuals’ preferences....

Persistent link: https://www.econbiz.de/10005765899

Behavioral and Experimental Economics Can Inform Public Policy: Some Thoughts

Riedl, Arno - CESifo - 2009

Experimental and behavioral economics are well established branches in the economic science. This essay presents and discusses some results and behavioral regularities from these fields which are of potential importance for public policy. After a brief introduction of what experimental and...

Persistent link: https://www.econbiz.de/10008533977

Theories of Fairness and Reciprocity – Evidence and Economic Applications

Fehr, Ernst; Schmidt, Klaus - CESifo - 2000

Most economic models are based on the self-interest hypothesis that assumes that all people are exclusively motivated by their material self-interest. In recent years experimental economists have gathered overwhelming evidence that systematically refutes the self-interest hypothesis and suggests...

Persistent link: https://www.econbiz.de/10005094414

Does Laboratory Trading Mirror Behavior in Real World Markets? Fair Bargaining and Competitive Bidding on EBay

Bolton, Gary E.; Ockenfels, Axel - CESifo - 2008

We conducted a controlled field experiment on eBay and examined to what extent both social and competitive laboratory behavior is robust to institutionally complex real world markets with experienced traders, who selected themselves into these markets. EBay’s natural trading system provides...

Persistent link: https://www.econbiz.de/10005181559

Input Versus Output Taxation in an Experimental International Economy

Riedl, Arno; Winden, Frans van - CESifo - 2003

This paper is concerned with a policy oriented macroeconomic experiment involving an ‘international’ economy with a relatively small ‘home’ country and a large ‘foreign’ country. It compares the economic performance of two alternative tax systems as a means to finance unemployment...

Persistent link: https://www.econbiz.de/10005181659