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Privacy, time consistent optimal labor income taxation and education policy
Konrad, Kai A. - 1999
Incomplete information is a commitment device for time consistency problems. In the context of time consistent labor …
Persistent link: https://www.econbiz.de/10011316909
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Fiscal policy, sovereign default, and bailouts
Jüßen, Falko; Schabert, Andreas - 2013
This paper examines fiscal policy without commitment and the effects of conditional bailout loans. The government … close-to-default states. These bailouts can lead to an increase in the mean debt price and a lower default probability that … are associated with enhanced household welfare. Yet, these outcomes can be reversed when bailouts are too generous, while …
Persistent link: https://www.econbiz.de/10010225902
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On the commitment needs of partially naive agents
Liu, Pan; Andersen, Torben M.; Bhattacharya, Joydeep - 2020
Time-inconsistent, present-biased agents may hold commitment assets hoping to keep their current and future present … bias in check. Paternalistic governments, in an effort to help such people, routinely offer commitment machinery such as … commitment assets recognizes a trade-off: while use of commitment technologies thwarts deviation from pre-selected paths, they …
Persistent link: https://www.econbiz.de/10012203129
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Globalization and human capital formation
Andersson, Fredrik; Konrad, Kai A. - 2001
This paper compares education investment in closed and open economies without government and with a benevolent government. The fact that the time consistency problem in taxation can make labor mobility beneficial even if governments are fully benevolent - which is known from other contexts - is...
Persistent link: https://www.econbiz.de/10011339674
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How opportunity costs decrease the probability of war in an incomplete information game
Polachek, Solomon W. (contributor); Xiang, Jun (contributor) - 2008
This paper shows that the opportunity costs resulting from economic interdependence decrease the equilibrium probability of war in an incomplete information game. This result is strongly consistent with existing empirical analyses of the inverse trade-conflict relationship, but is the opposite...
Persistent link: https://www.econbiz.de/10003784394
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Can workers' expectations account for the persistence of discrimination?
Filippin, Antonio - 2009
The paper explains how workers' expectations of being discriminated against can be self-confirming, accounting for the persistence of unequal outcomes in the labour market even beyond the causes that originally generated them. The theoretical framework used is a two-stage game of incomplete...
Persistent link: https://www.econbiz.de/10003904618
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Competition, hidden information and efficiency : an experiment
Cabrales, Antonio (contributor); Charness, Gary (contributor) - 2006
"We devise an experiment to explore the effect of different degrees of competition on optimal contracts in a hidden-information context. In our benchmark case, each principal is matched with one agent of unknown type. In our second treatment, a principal can select one of three agents, while in...
Persistent link: https://www.econbiz.de/10003373398
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The role of bounded rationality and imperfect information in subgame perfect implementation : an empirical investigation
Aghion, Philippe; Fehr, Ernst; Holden, Richard T.; … - 2015
mechanism should - in theory - provide incentives for truth-telling, many buyers in fact believe that they can increase their …
Persistent link: https://www.econbiz.de/10010510004
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Biased beliefs and imperfect information
Proto, Eugenio; Sgroi, Daniel - 2015
We perform an incentivized experiment designed to assess the accuracy of beliefs about characteristics and decisions. Subjects are asked to declare some specific choices and characteristics with different levels of observability from an external point of view, and typically formed through real...
Persistent link: https://www.econbiz.de/10010488302
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Information and racial exclusion
Lundberg, Shelly (contributor); Startz, Richard (contributor) - 2004 - [Elektronische Ressource]
This paper presents several economic models that explore the relationships between imperfect information, racial income disparities, and segregation. The use of race as a signal arises here, as in models of statistical discrimination, from imperfect information about the return to transactions...
Persistent link: https://www.econbiz.de/10002485567