We incorporate a renewable resource into an overlapping generations model with standard, well-behaved utility and constant returns to scale production functions. Besides being a factor of production the resource serves as a store of value. We characterize dynamics, efficiency and stability of...

That climate policies are costly is evident and therefore often creates major fears. But the alternative (no action) also has a cost. Mitigation costs and damages incurred depend on what the climate policies are; moreover, they are substitutes. This brings climate policies naturally in the realm...

We utilize region-day variation in actual vs. forecasted weather conditions (i.e. forecasting errors) to comprehensively investigate the effects of the first heat-health warning system in Japan. We find that heat alerts led to a 17% increase in heat stroke counts. An analysis of mechanisms...

We examine the trade-off between functionality and data privacy inherent in many AI products by conducting a randomized survey experiment with 1,734 participants from the US and several European countries. Participants' willingness to adopt a hypothetical, AI-enhanced app is measured under three...

We study the gendered impact of recommendations at different stages of the hiring process. First, using a large sample of reference letters from the academic job market for economists, we document that women receive fewer "ability" and more "grindstone" letters. Next, we conduct two experiments...

In social dilemmas, cooperation failures often arise due to the absence of mechanisms that prevent free-riding and enhance cooperation. Given the critical role these mechanisms play in sustaining cooperation, why are they so frequently missing? To explore this, we conducted an online experiment...

Inequality often arises from strategic interactions among individuals. This is so because risky investments can not only be resolved by chance (natural risk), but also by others' actions (social risk). We study how these different sources of inequality shape fairness judgments and the level of...

Macroeconomic uncertainty affects the subjective distribution of individual expectations. Using four panel datasets, we document the effects of macro uncertainty on the mean expectation (first moment) and subjective uncertainty (second moment) of income forecasts. We find that macro uncertainty...

This paper presents an empirical investigation of the relation between decision speed and decision quality for a real-world setting of cognitively-demanding decisions in which the timing of decisions is endogenous: professional chess. Move-by-move data provide exceptionally detailed and precise...

The enforcement of social norms is the fabric of a functioning society. Through the lens of mul-tiple studies using different methodologies (a behavioral experiment and a vignette experiment in Study 1, as well as a norm elicitation experiment in Study 2), we examine how motives for lying and...