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We develop a two-region model where the decentralized provision of spillover goods can be financed by means of taxes or user fees. In order to enforce the fees regions have to invest in exclusion. We show that a decentralized solution tends to be inefficient. There will be over-investment in...
Persistent link: https://www.econbiz.de/10011402495
private provision of public goods. We examine whether reciprocity can resolve the associated coordination problem. The …
Persistent link: https://www.econbiz.de/10010383392
This paper provides an economic explanation for the increasing reliance of the state on revenue from user charges on excludable public goods. We develop a model with many identical countries. The government of each country levies a capital tax on the domestic production sector and supplies an...
Persistent link: https://www.econbiz.de/10011402456
We report experimental evidence on the voluntary provision of public goods under threshold uncertainty. By explicitly comparing two prominent technologies, summation and weakest link, we show that uncertainty is particularly detrimental to threshold attainment under weakest link, where low...
Persistent link: https://www.econbiz.de/10012696938
equilibrium into a coordination game with a set of Pareto-superior equilibria. Thresholds may therefore improve efficiency in the … voluntary provision of public goods. In our one-shot experiment, we find that coordination often fails and exogenously imposed …, because voting may facilitate coordination due to signaling and commitment effects. We find that voting does have signaling …
Persistent link: https://www.econbiz.de/10003923574
Field evidence suggests that agents belonging to the same group tend to behave similarly, i.e., behavior exhibits social interaction effects. Testing for such effects raises severe identification problems. We conduct an experiment that avoids these problems. The main design feature is that each...
Persistent link: https://www.econbiz.de/10011507945
Many experts claim that the incidence of suicide attacks is driven by religious cleavages. To test this hypothesis, we investigate whether the total number of suicide attacks per violent conflict or the annual number of suicide attacks per country is associated with simmering religious...
Persistent link: https://www.econbiz.de/10010475337
perceive a fundamental parameter with noise. We focus on 2 x 2 coordination games, which generate multiple equilibria when …
Persistent link: https://www.econbiz.de/10012698826
higher payoffs in the game when the talk is one-way as the truthful reports facilitate desired coordination. …
Persistent link: https://www.econbiz.de/10011761639
coordination. In a fixed interaction treatment, a vast majority of subjects quickly coordinates on the inefficient outcome. In a …
Persistent link: https://www.econbiz.de/10012506919