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Deception and incentives: how dishonesty undermines effort provision

Ederer, Florian (contributor); Fehr, Ernst (contributor) - 2007

In this paper we show that subtle forms of deceit undermine the effectiveness of incentives. We design an experiment in which the principal has an interest in underreporting the true performance difference between the agents in a dynamic tournament. According to the standard approach, rational...

Persistent link: https://www.econbiz.de/10003646717

Why is the public sector more labor-intensive? : A distortionary tax argument

Poutvaara, Panu (contributor); Wagener, Andreas (contributor) - 2004 - [Elektronische Ressource]

Government-run entities are often more labor-intensive than private companies, even with identical production … firms. A tax-favored treatment of public production precludes production efficiency. It reduces welfare when labor supply is … constant. With an elastic labor supply, a wage tax advantage of the public sector may improve welfare if it allows for a higher …

Persistent link: https://www.econbiz.de/10002504341

Candidate quality

Poutvaara, Panu (contributor); Takalo, Tuomas (contributor) - 2004 - [Elektronische Ressource]

Persistent link: https://www.econbiz.de/10002120356

Earnings-related severance pay

Goerke, Laszlo - 2006

In an efficiency wage economy, lump-sum severance pay from which shirkers can be excluded raises employment. However, severance payments are usually related to wages. It is shown that earnings-related, mandated severance pay will have ambiguous employment effects if effort can be varied...

Persistent link: https://www.econbiz.de/10003355561

Corporate and personal income tax declarations

Goerke, Laszlo (contributor) - 2006

Decisions by firms and individuals on the extent of their tax payments have generally been treated as separate choices. Empirically, a positive relationship between corporate and personal income tax evasion can be observed. The theoretical analysis in this paper shows that a manager's decision...

Persistent link: https://www.econbiz.de/10003355568

On the economics and biology of trust

Fehr, Ernst (contributor) - 2008

In recent years, many social scientists have claimed that trust plays an important role in economic and social transactions. Despite its proposed importance, the measurement and the definition of trust seem to be not fully settled, and the identification of the exact role of trust in economic...

Persistent link: https://www.econbiz.de/10003793375

Is there scope for gains from revenue-neutral labor tax reforms with flexible outsourcing?

Koskela, Erkki; Poutvaara, Panu - 2009

We study the effects of revenue-neutral labor tax reforms in an imperfectly competitive domestic labor market under … negotiated wage rate, increase domestic labor demand and decrease international outsourcing. In the presence of wage tax … exemption, a lower payroll tax and a higher wage tax will increase domestic labor demand and decrease international outsourcing …

Persistent link: https://www.econbiz.de/10003808576

Reputation and credit market formation : how relational incentives and legal contract enforcement interact

Fehr, Ernst; Zehnder, Christian - 2009

The evidence suggests that relational contracting and legal rules play an important role in credit markets but on the basis of the prevailing field data it is difficult to pin down their causal impact. Here we show experimentally that relational incentives are a powerful causal determinant for...

Persistent link: https://www.econbiz.de/10003884085

Pareto-improving bequest taxation

Grossmann, Volker (contributor); Poutvaara, Panu (contributor) - 2006

Altruistic parents may transfer resources to their offspring by providing education, and by leaving bequests. We show that in the presence of wage taxation, a small bequest tax may improve efficiency in an overlapping-generations framework with only intended bequests, by enhancing incentives of...

Persistent link: https://www.econbiz.de/10003465882

Imperfect transmission of tacit knowledge and other barriers to entrepreneurship

Kanniainen, Vesa (contributor); Poutvaara, Panu (contributor) - 2007

This paper identifies several distortions which create barriers to entrepreneurship. First, in addition to the innate entry cost, there are entry costs caused by regulation. Second, union wage policies raise the opportunity cost of entrepreneurship. Third, inefficiencies in the transmission of...

Persistent link: https://www.econbiz.de/10003607769