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Consider a public project which produces a consumption good and which benefits future generations. Let a conventional cost-benefit analysis find that it gives higher benefits than projects it would dis-place in the private sector. Voters may nevertheless oppose the public project: the...
Persistent link: https://www.econbiz.de/10011400766
This paper uses fractional integration methods to measure the degree of persistence in historical annual data on the world population over the period 1800-2016. The analysis is carried out for the original series, and also for its log transformation and its growth rate. The results indicate that...
Persistent link: https://www.econbiz.de/10013550205
This paper provides estimates of persistence in historical UK data on life expectancy applying fractional integration methods to both an annual series from 1842 to 2019 and a 5-year average from 1543 to 2019. The results indicate that the former exhibits an upward trend and is persistent but...
Persistent link: https://www.econbiz.de/10013550208
Do democratically chosen rules lead to more cooperation and, hence, higher efficiency, than imposed rules? To discuss when such a "dividend of democracy" obtains, we review experimental studies in which material incentives remain stacked against cooperation (i.e., free-riding incentives prevail)...
Persistent link: https://www.econbiz.de/10014334071
This paper reviews recent research on the aggregation of heterogeneous time preferences. Main results are illustrated in simple Ramsey models with two or three agents who differ in their discount factors. We employ an intertemporal view on these models and argue that preferences of a decision...
Persistent link: https://www.econbiz.de/10012546897
behavioral experiment, we elicit German legislators' social welfare criteria unconfounded by political economy constraints. When …" which insists that choices merit intervention only if the lure of immediacy may bias intertemporal choice. Politicians' and …
Persistent link: https://www.econbiz.de/10014247240
The assumption that payoff-relevant information is observable but not verifiable is important for many core results in contract, organizational and institutional economics. However, subgame-perfect implementation (SPI) mechanisms - which are based on off-equilibrium arbitration clauses that...
Persistent link: https://www.econbiz.de/10010399065
This paper considers the implications of an important cognitive bias in information processing, confirmation bias, in a …, we show that when voters have this bias, it decreases pandering by the incumbent, and can raise voter welfare as a … evolution of confirmation bias can lead to more pandering before the first election. Finally, we show that when confirmation …
Persistent link: https://www.econbiz.de/10011286492
. This may lead to exaggerated conservatism in the voting decision (status quo bias). To investigate how complexity affects …
Persistent link: https://www.econbiz.de/10011922007
We study the role of self-interest and social preferences in referenda. Our analysis is based on collective purchasing decisions of university students on deep-discount flat rate tickets for public transportation and culture. Individual usage data allows quantifying monetary benefits associated...
Persistent link: https://www.econbiz.de/10010496966