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Abusive Transfer Pricing and Economic Activity
Nielsen, Soren Bo - 2014
We demonstrate that the choice of the transfer price and its effect on intra-firm trade and investment depends on the probability of detection and thus on the measure, on which tax authorities base their audit. A policy implication of the paper is that it should be preferable to condition audits...
Persistent link: https://www.econbiz.de/10013046061
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Optimal Regulation of Auditing
Pagano, Marco; Immordino, Giovanni - 2021
We study regulation of the auditing profession in a model where audit quality is unobservable and enforcing regulation is costly. The optimal audit standard falls short of the first-best audit quality, and is increasing in the riskiness of firms and in the amount of funding they seek. The model...
Persistent link: https://www.econbiz.de/10013317070
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Signaling versus Auditing
Bester, Helmut - 2019
We analyze a competitive labor market in which workers signal their productivities through education à la Spence (1973), and firms have the option of auditing to learn workers' productivities. Audits are costly and non–contractible. We characterize the trade–offs between signaling by...
Persistent link: https://www.econbiz.de/10012898039
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Information Aggregation in Democratic Mechanisms
Britz, Volker - 2016
benefits only if they aggregate their private information. Some members of the society, however, are harmed by socially … desirable policies and aim at manipulating information aggregation by misrepresenting their private information. We show that … information can be aggregated and a socially desirable policy can be implemented under a new class of democratic mechanisms …
Persistent link: https://www.econbiz.de/10012994342
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Private Monitoring, Collusion and the Timing of Information
Khalil, Fahad; Lawarree, Jacques P.; Scott, Troy Joseph - 2015
When a principal’s monitoring information is private (non-verifiable), the agent should be concerned that the principal … could misrepresent the information to reduce the agent’s wage or collect a monetary penalty. Restoring credibility may lead … when the private information arrives in time to rescale the agent’s effort. Rescaling is more effective than pure monetary …
Persistent link: https://www.econbiz.de/10014043494
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Efficiency-Morality Trade-Offs in Repugnant Transactions : A Choice Experiment
Elias, Julio - 2016
Societies prohibit many transactions considered morally repugnant, although potentially efficiency-enhancing. We conducted an online choice experiment to characterize preferences for the morality and efficiency of payments to kidney donors. Preferences were heterogeneous, ranging from...
Persistent link: https://www.econbiz.de/10012979667
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Implementation of Communication Equilibria by Correlated Cheap Talk : The Two-Player Case
Vida, Peter - 2011
We show that essentially every communication equilibrium of any finite Bayesian game with two players can be implemented as a strategic form correlated equilibrium of an extended game, in which before choosing actions as in the Bayesian game, the players engage in a possibly infinitely long (but...
Persistent link: https://www.econbiz.de/10013128960
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Ageing, Government Budgets, Retirement, and Growth
Gonzalez-Eiras, Martín - 2011
We analyze the short and long run effects of demographic ageing - increased longevity and reduced fertility - on per-capita growth. The OLG model captures direct effects, working through adjustments in the savings rate, labor supply, and capital deepening, and indirect effects, working through...
Persistent link: https://www.econbiz.de/10013129861
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Emotions in Litigation Contests
Baumann, Florian - 2011
This paper introduces the concept of emotions into the standard litigation contest. Positive (negative) emotions emerge when litigants win (lose) at trial and are dependent in particular on the level of defendant fault. Our findings establish that standard results of litigation contests change...
Persistent link: https://www.econbiz.de/10013129864
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Commodity Tax Structure Under Uncertainty in a Perfectly Competitive Market
Goerke, Laszlo - 2011
In a partial equilibrium setting without price uncertainty, the balanced-budget substitution of an ad valorem tax on output for a specific (unit) tax can enhance welfare in imperfectly competitive markets and is without impact in a competitive world. This paper demonstrates that a substitution...
Persistent link: https://www.econbiz.de/10013130099