Showing 1 - 10 of 469
This paper seeks to clarify the extent to which the rule for providing public goods ought to correct for the distortionary cost of raising funds. We argue that, in evaluating public projects, the marginal cost of funds (MCF) concept must be supplemented by a symmetrical concept, which we label...
Persistent link: https://www.econbiz.de/10012470530
This paper makes three contributions to the literature on private provision of public goods. First, we identify limitations of the frequently used specification test that distinguishes between the standard models of pure and impure altruism based on the extent of crowding out. While the...
Persistent link: https://www.econbiz.de/10012480388
This paper shows that the level of deforestation in Indonesia is positively related to the degree of ethnic fractionalization at the district level. To identify a casual relation we exploit the exogenous timing of variations in the level of ethnic heterogeneity due to the creation of new...
Persistent link: https://www.econbiz.de/10012458163
This paper treats taxation in kind (IKT) as an example of price regulation, emphasizing IKT-avoidance behavior, and its …
Persistent link: https://www.econbiz.de/10012457083
Dynamic discrete choice models (DDC) are not identified nonparametrically. However, the non-identification of DDC models does not necessarily imply non-identification of counterfactuals of interest. Using a novel approach that can accommodate both nonparametric and restricted payoff functions,...
Persistent link: https://www.econbiz.de/10012457142
We study the timing-of-extraction problem facing a decentralized mine owner when extraction entails environmental damage. As expected, when the environmental damage from mining is known, the socially optimal timing will depend on the magnitude of the damage relative to these costs in the rest of...
Persistent link: https://www.econbiz.de/10012457342
If individuals evaluate outcomes relative to the status quo, then a social planner may limit redistribution from rich to poor even in the absence of moral hazard. We present two experiments suggesting that individuals, placed in the position of a social planner, do in fact respect the reference...
Persistent link: https://www.econbiz.de/10012457659
Collateral constraints widely used in models of financial crises feature a pecuniary externality: Agents do not internalize how borrowing decisions taken in "good times" affect collateral prices during a crisis. We show that agents in a competitive equilibrium borrow more than a financial...
Persistent link: https://www.econbiz.de/10012458958
Most countries have automatic rules in their tax-and-transfer systems that are partly intended to stabilize economic fluctuations. This paper measures how effective they are. We put forward a model that merges the standard incomplete-markets model of consumption and inequality with the new...
Persistent link: https://www.econbiz.de/10012459662
their growth performance. In our model, the effects of taxation on growth are highly non-linear. Low or moderate tax rates …
Persistent link: https://www.econbiz.de/10012460188