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Punishment : and beyond
Frey, Bruno S. - 2009
This paper argues that the Economics of Crime concentrates too much on punishment as a policy to fight crime, which is … unwise for several reasons. There are important instances in which punishment simply cannot reduce crime. Several feasible … alternatives to punishment exist, such as offering positive incentives or handing out awards for law abiding behavior. These …
Persistent link: https://www.econbiz.de/10010266023
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Risk-Taking Under Limited Liability : Quantifying the Role of Motivated Beliefs
Bosch-Rosa, Ciril; Gietl, Daniel; Heinemann, Frank - 2021
This paper investigates whether limited liability and moral hazard affect risk-taking through motivated beliefs. On the one hand, limited liability pushes investors towards taking excessive risks. On the other, such excesses make it hard for investors to maintain a positive self-image when moral...
Persistent link: https://www.econbiz.de/10013310769
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The Cost of Regulatory Compliance in the United States
Trebbi, Francesco; Zhang, Miao Ben; Simkovic, Michael - 2023
One of the key questions in the study of regulation is whether the costs of regulatory compliance fall homogeneously on …
Persistent link: https://www.econbiz.de/10014345692
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Do managers with limited liability take more risky decisions? An information acquisition model
Malcomson, James M. - 2010
Risk-neutral individuals take more risky decisions when they have limited liability. Risk-neutral managers may not when acting as agents under contract and taking costly actions to acquire information before taking decisions. Limited liability makes it optimal to increase the reward for outcomes...
Persistent link: https://www.econbiz.de/10010275809
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The Null Result Penalty
Chopra, Felix; Haaland, Ingar; Roth, Christopher; … - 2022
We examine how the evaluation of research studies in economics depends on whether a study yielded a null result. Studies with null results are perceived to be less publishable, of lower quality, less important, and less precisely estimated than studies with significant results, even when holding...
Persistent link: https://www.econbiz.de/10014082791
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Deviant or Wrong? The Effects of Norm Information on the Efficacy of Punishment
Bicchieri, Cristina; Dimant, Eugen; Xiao, Erte - 2021
Research examining the effect of weak punishment on conformity indicates that punishment can backfire and lead to … of social norms and their interplay with weak punishment in the context of a trust game. Across six conditions, we … systematically vary the combination of existence of weak punishment and norm information. Norm information may refer either to what …
Persistent link: https://www.econbiz.de/10013228854
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Limited liability, asymmetric taxation, and risk taking: Why partial tax neutralities can be harmful
Ewert, Ralf; Niemann, Rainer - 2010
We examine the combined effects of asymmetric taxation and limited liability on optimal risk taking of investors. Given an optimal risk level in the pre-tax case under full liability, loss-offset restrictions reduce, and limited liability enhances the incentives for taking risk. For every degree...
Persistent link: https://www.econbiz.de/10010274985
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Rotemberg and Imperfect Common Knowledge : A Solution Algorithm
Šauer, Radek - 2020
This paper develops an algorithm that enables to solve macroeconomic models with Rotemberg pricing and imperfect common knowledge. Under the concept of imperfect common knowledge, Rotemberg pricing requires the solution algorithm to take prices explicitly into account. The state space includes...
Persistent link: https://www.econbiz.de/10012841148
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Signaling and Employer Learning with Instruments
Aryal, Gaurab - 2020
The social and the private returns to education differ when education can increase productivity, and also be used to signal productivity. We show how instrumental variables can be used to separately identify and estimate the social and private returns to education within the employer learning...
Persistent link: https://www.econbiz.de/10012841583
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Belief Elicitation : Limiting Truth Telling with Information or Incentives
Danz, David - 2020
Belief elicitation is central to inference on economic decision making. The recently introduced Binarized Scoring Rule (BSR) is heralded for its robustness to individuals holding risk averse preferences and for its superior performance when eliciting beliefs. Consequently, the BSR has become the...
Persistent link: https://www.econbiz.de/10012842970