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A main puzzle in the sovereign debt literature is that defaults have only minor effects on subsequent borrowing costs and access to credit. This paper comes to a different conclusion. We construct the first complete database of investor losses ('haircuts') in all restructurings with foreign...
Persistent link: https://www.econbiz.de/10013092297
Governments often provide their citizens with goods and services that are also supplied in markets: education, housing, nutritional assistance, etc. We analyze the political economy of the public provision of private goods when individuals care about their social image. We show that image...
Persistent link: https://www.econbiz.de/10012962915
We study equilibrium reporting behavior in Fischbacher and Föllmi-Heusi (2013)-type cheating games when agents have a fixed cost of lying and image concerns not to be perceived as a liar. We show that equilibria naturally arise in which agents with low costs of lying randomize among a set of...
Persistent link: https://www.econbiz.de/10012902152
into the mission-oriented or private sector with motivated agents who also value the collective reputation of their place … high-reputation, low-wage equilibrium and a low-reputation, high-wage equilibrium, which raises the question of how an … from a low-reputation to a high-reputation steady state: Importantly, the effect of wages on motivation depend on the …
Persistent link: https://www.econbiz.de/10013010473
equilibria share some features with the ones of multi-sided reputation models …
Persistent link: https://www.econbiz.de/10013055418
emerging economies. We show that governments in emerging economies are more concerned about their reputation and tend to ride … that would help prevent potential crises. We provide evidence of the relevance of this reputation mechanism …
Persistent link: https://www.econbiz.de/10013047326
. We show that this “reputation inflation” is the equilibrium outcome of a model in which (a) inferences made by future …
Persistent link: https://www.econbiz.de/10012930078
In this paper we develop a theory of patenting in which a firm preserves its reputation to only apply for a patent … reputation to be preserved in equilibrium and analyze which market environments are favorable for such an equilibrium to exist …
Persistent link: https://www.econbiz.de/10013035190
opportunistic behavior, but may cause the manager to pursue conservative courses of action to preserve his reputation. This …
Persistent link: https://www.econbiz.de/10013146792
In this paper, we consider a committee of experts that decides whether to approve or reject a proposed innovation on behalf of society. In addition to a payoff linked to the adequateness of the committee’s decision, each expert receives a disesteem payoff if he/she voted in favor of an...
Persistent link: https://www.econbiz.de/10013315597