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given party ideological predispositions and power distribution determine the expected policy outcome. Our analysis applies … weighted by power. Our second result clarifies how the success of an interest group hinges on the dominance of its ideology in … effect of ideological predispositions and power on the efforts of the interest groups …
Persistent link: https://www.econbiz.de/10013096476
vote independently of each other. Thus, we receive as an empirical result what the previous voting power literature assumed …
Persistent link: https://www.econbiz.de/10012868829
public schooling. We develop a theory which integrates private education and fertility decisions with voting on public … political power can lead to multiple equilibria in the determination of public education spending. The main predictions of the … theory are consistent with state-level and micro data from the United States as well as cross-country evidence from the PISA …
Persistent link: https://www.econbiz.de/10013319556
Employers structure pay and employment relationships to mitigate agency problems. A large literature in economics documents how the resolution of these problems shapes personnel policies and labor markets. For the most part, the study of agency in employment relationships relies on highly...
Persistent link: https://www.econbiz.de/10013139879
The paper analyzes how the choice of organizational structure leads to the best compromise between controlling behavior based on authority rights and minimizing costs for implementing high efforts. Concentrated delegation and hierarchical delegation turn out to be never an optimal compromise. If...
Persistent link: https://www.econbiz.de/10013084675
We consider an economy where individuals privately choose effort and trade competitively priced securities that pay off with effort-determined probability. We show that if insurance against a negative shock is sufficiently incomplete, then standard functional form restrictions ensure that...
Persistent link: https://www.econbiz.de/10013071425
This article examines whether social comparisons have behavioral effects on workers' performance when a firm can choose workers' wages or let them choose their own. Firms can delegate the wage decision to neither, one or both workers in the firm. We vary the information workers receive, finding...
Persistent link: https://www.econbiz.de/10013071433
To which extent does an increase in operating effectiveness of public employment agencies on the one hand and a reduction of unemployment benefits on the other reduce unemployment? Using the recent labour market reform in Germany as background we find that the role of unemployment benefit...
Persistent link: https://www.econbiz.de/10013074146
In our simple model the supervisor: i) cannot observe the agent's effort; ii) aims at inducing the agent to exert high effort; but iii) can only offer rewards based on performance. Since performance is only stochastically related to effort, evaluation errors may occur. In particular, deserving...
Persistent link: https://www.econbiz.de/10013112772
Social interaction with colleagues is an important job attribute for many workers. To attract and retain workers, managers therefore need to think about how to create and preserve high-quality co-worker relationships. This paper develops a principal-multi-agent model where agents do not only...
Persistent link: https://www.econbiz.de/10013154985