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In experimental investigations of the effect of real incentives, accountability-the implicit or explicit expectation of a decision maker that she may have to justify her decisions in front of somebody else-is often confounded with the incentives themselves. This confounding of accountability...
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binding policy commitment before nominal wages are set, excessive inflation may result due to a credibility problem. This is … the famous Kydland&Prescott - Barro&Gordon inflationary bias result. This paper shows that a similar credibility problem … solve the credibility problem. …
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