Narrow search
Showing 1 - 10 of 199
Cover Image
The Economics of Credence Goods: On the Role of Liability, Verifiability, Reputation and Competition
Dulleck, Uwe; Kerschbamer, Rudolf; Sutter, Matthias - Institute for the Study of Labor (IZA) - 2009
determinants for efficiency in credence goods markets. While theory predicts that either liability or verifiability yields … efficiency, we find that liability has a crucial, but verifiability only a minor effect. Allowing sellers to build up reputation … higher efficiency as long as liability is violated. …
Persistent link: https://www.econbiz.de/10005822832
Cover Image
Construction Contracts (or: "How to Get the Right Building at the Right Price?")
Chakravarty, Surajeet; MacLeod, W. Bentley - Institute for the Study of Labor (IZA) - 2006
Most contracts that individuals enter into are not written from scratch; rather, they depend upon forms and terms that have been successful in the past. In this paper, we study the structure of form construction contracts published by the American Institute of Architects (AIA). We show that...
Persistent link: https://www.econbiz.de/10005233914
Cover Image
How Unjust! An Experimental Investigation of Supervisors' Evaluation Errors and Agents' Incentives
Marchegiani, Lucia; Reggiani, Tommaso; Rizzolli, Matteo - Institute for the Study of Labor (IZA) - 2011
In our simple model the supervisor: i) cannot observe the agent's effort; ii) aims at inducing the agent to exert high effort; but iii) can only offer rewards based on performance. Since performance is only stochastically related to effort, evaluation errors may occur. In particular, deserving...
Persistent link: https://www.econbiz.de/10009416946
Cover Image
Performance Pay and Risk Aversion
Grund, Christian; Sliwka, Dirk - Institute for the Study of Labor (IZA) - 2006
A main prediction of agency theory is the well known risk-incentive trade-off. Incentive contracts should be found in environments with little uncertainty and for agents with low degrees of risk aversion. There is an ongoing debate in the literature about the first trade-off. Due to lack of...
Persistent link: https://www.econbiz.de/10005822413
Cover Image
Performance Measurement, Expectancy and Agency Theory: An Experimental Study
Praag, Mirjam van; Sloof, Randolph - Institute for the Study of Labor (IZA) - 2007
Theoretical analyses of (optimal) performance measures are typically performed within the realm of the linear agency model. This model implies that, for a given compensation scheme, the agent’s optimal effort is unrelated to the amount of noise in the performance measure. In contrast,...
Persistent link: https://www.econbiz.de/10005761969
Cover Image
Evidence and Persistence of Education Inequality in an Early-Tracking System: The German Case
Krause, Annabelle; Schüller, Simone - Institute for the Study of Labor (IZA) - 2014
This article reviews empirical evidence on the early tracking system in Germany and the educational inequalities …
Persistent link: https://www.econbiz.de/10010990917
Cover Image
Sufficient Statistic or Not? The Elasticity of Taxable Income in the Presence of Deduction Possibilities
Doerrenberg, Philipp; Peichl, Andreas; Siegloch, Sebastian - Institute for the Study of Labor (IZA) - 2014
several tax reforms that were implemented in Germany between 2001 and 2008. Our baseline estimates indicate an overall ETI of …
Persistent link: https://www.econbiz.de/10010990918
Cover Image
Documentation IZAΨMOD v3.0: The IZA Policy Simulation Model
Loeffler, Max; Peichl, Andreas; Pestel, Nico; Siegloch, … - Institute for the Study of Labor (IZA) - 2014
This paper describes IZAΨMOD, the policy microsimulation model of the Institute for the Study of Labor (IZA). The model uses household microdata from the German Socio-Economic Panel Study and firm data from the German linked employer-employee dataset LIAB. IZAΨMOD consists of three components:...
Persistent link: https://www.econbiz.de/10010990920
Cover Image
The Dynamics of Social Assistance Benefit Receipt in Germany: State Dependence Before and After the 'Hartz Reforms'
Königs, Sebastian - Institute for the Study of Labor (IZA) - 2014
In this article, I study state dependence in social assistance receipt in Germany using annual survey data from the … persistence rates and the absolute level of structural state dependence are higher in Eastern Germany than in Western Germany. I …
Persistent link: https://www.econbiz.de/10010884120
Cover Image
Do Literacy and Numeracy Pay Off? On the Relationship between Basic Skills and Earnings
Antoni, Manfred; Heineck, Guido - Institute for the Study of Labor (IZA) - 2012
Is there a reward for basic skills in the German labor market? To answer this question, we examine the relationship between literacy, numeracy and monthly gross earnings of full-time employed workers. We use data from the ALWA survey, augmented by test scores on basic cognitive skills as well as...
Persistent link: https://www.econbiz.de/10010884134