In prosocial decisions, decision-makers face interpersonal uncertainty - uncertainty about how their choices impact others' utility. We use three approaches to show how it shapes classic patterns of prosocial behavior like ingroup favoritism, merit-based fairness, and self-favoring behavior....

In empirical studies it often happens that some variables for some units are far away from the other observations in the sample. These extreme observations, or outliers, often have a large impact on the results of statistical analyses – conclusions based on a sample with and without these...

This paper extends the transformed maximum likelihood approach for estimation of dynamic panel data models by Hsiao, Pesaran, and Tahmiscioglu (2002) to the case where the errors are crosssectionally heteroskedastic. This extension is not trivial due to the incidental parameters problem that...

The ex-ante evaluation of policies using structural econometric models is based on estimated parameters as a stand-in for the truth. This practice ignores uncertainty in the counterfactual policy predictions of the model. We develop a generic approach that deals with parametric uncertainty using...

Using a new survey of firms in New Zealand, we document how exogenous variation in the macroeconomic uncertainty perceived by firms affects their economic decisions. We use randomized information treatments that provide different types of information about the first and/or second moments of...

Do voters place their trust in tried and tested leaders when uncertainty is high or do they prefer a new slate of leaders who are arguably more competent? To study this question, we make use of hand-collected data on 402,385 candidates who competed in open-list local council elections...