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We set up a two-country, regional model of trade in financial services. Competitive firms in each country manufacture untraded consumer goods in an uncertain productive environment, borrowing funds from a bank in either the home or the foreign market. Duopolistic banks can choose their levels of...
Persistent link: https://www.econbiz.de/10011554376
It has been argued that monetary incentives restrain individual creativity and hamper performance in jobs requiring out … also when individuals work together to solve such problems. We do not find a negative impact of incentives on group … performance. As a comparison we ran the same experiment (the Candle Problem) with and without incentives for individuals as well …
Persistent link: https://www.econbiz.de/10009786022
incentives to implement such a trigger? We construct a theoretical model of a bank that is financed with debt and equity, and a …. However, we show that the board may implement a contract with insufficient incentives to communicate a warning, as refinancing …
Persistent link: https://www.econbiz.de/10010467356
In this paper, foreign aid transfers can distort individual incentives, and hence hurt growth, by encouraging rent …
Persistent link: https://www.econbiz.de/10011402546
We study, theoretically and empirically, the effects of incentives on the self-selection and coordination of motivated …). Agents differ in their motivation to exert social effort. Our model predicts that lowering incentives for selfish effort in … prediction in a lab experiment allowing us to cleanly separate the selection effect from other effects of low incentives. Results …
Persistent link: https://www.econbiz.de/10012599052
Much of economics assumes that higher incentives increase participation in a transaction only because they exceed more … costly, higher incentives also change reservation prices to further increase participation. A higher incentive makes people …. Hence, incentives change not only what people choose, but also what they believe their choices entail. This result informs …
Persistent link: https://www.econbiz.de/10011588031
incentives - motivate a worker by adopting leadership styles that differ in their non-monetary consequences for the worker's well …
Persistent link: https://www.econbiz.de/10012110227
, an additionally provided monthly application decreases the length of spells by 4%. In line with theory, we further find …
Persistent link: https://www.econbiz.de/10011892543
A windfall of natural resource revenue (or foreign aid) faces government with choices of how to manage public debt, investment, and the distribution of funds for consumption, particularly if the windfall is both anticipated and temporary. We show that the permanent income hypothesis prescription...
Persistent link: https://www.econbiz.de/10003813611
We argue a holdout is not a destructive investor behaviour but a rational investment decision. This investment decision is characterised by the mean-variance approach. We investigate intercreditor conflict by diverse portfolio structure. We demonstrate that at some point during the Greek (2012)...
Persistent link: https://www.econbiz.de/10011343761