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In this paper we study the effect of optimistic income expectations on life satisfaction amongst the Chinese population … strong in the countryside and amongst rural-to-urban migrants. The importance of these expectations for life satisfaction is … particularly pronounced in the urban areas, though also highly significant for the rural area. If expectations were to reverse from …
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This paper studies how dual-self (Fudenberg and Levine, 2006) decision-makers can use commitment technologies to combat temptation and implement long-run optimal actions. I consider three types of commitment technologies: carrot contracts (rewards for ‘good’ behavior financed by borrowing...
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We develop a model of legislative decision making in which lobbying and public policy are jointly determined. We examine how policy outcomes depend on the sizes of the interest groups. While a larger size typically involves favorable effects on policy, we also identify threshold levels of...
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