Showing 1 - 10 of 354
Despite extensive use of bargaining models in economics and despite Becker's insistence on the importance of altruism in families, the theoretical literature on bargaining ignores altruism and assumes that everyone is an egoist. This paper shows that incorporating altruism into cooperative...
Persistent link: https://www.econbiz.de/10013388855
The past few years have seen a shift in many universities' admission policies from test-required to either test-optional or test-blind. This paper uses laboratory experiments to examine students' reporting behavior given their application package and the school's interpretation of non-reported...
Persistent link: https://www.econbiz.de/10015398113
We study a standard collective action problem in which successful achievement of a group interest requires costly participation by some fraction of its members. How should we model the internal organization of these groups when there is asymmetric information about the preferences of their...
Persistent link: https://www.econbiz.de/10014226188
Which budgetary institutions result in efficient provision of public goods? We analyze a model with two parties bargaining over the allocation to a public good each period. Parties place different values on the public good, and these values may change over time. We focus on budgetary...
Persistent link: https://www.econbiz.de/10012456220
Alan Auerbach and Kevin Hassett offer a new measure of horizontal equity (HE) that is designed to overcome deficiencies in prior indexes. There is, however, a fundamental problem that their effort shares with their predecessors' attempts: the underlying rationale for pursuing HE at the expense...
Persistent link: https://www.econbiz.de/10012471118
In models with recursive preferences, endogenous variation in Pareto weights would be interpreted as wedges from the perspective of a frictionless model with additive preferences. We describe the behavior of the (relative) Pareto weight in a two-country world and explore its interaction with...
Persistent link: https://www.econbiz.de/10012456898
Inherent in the definition of Pareto efficiency is the idea that, in dynamic environments, an individual is indexed by the history of events up to his birth (rather than, as usual, the date of birth). Here, we explore the implications of this natural formulation. The set of Pareto efficient...
Persistent link: https://www.econbiz.de/10012457783
This paper discusses what determines the preferences of individuals for redistribution. We review the theoretical literature and provide a framework to incorporate various effects previously studied separately in the literature. We then examine empirical evidence for the US, using the General...
Persistent link: https://www.econbiz.de/10012463822
How costly is the misallocation of production that we might expect to result from distortions such as market power, incomplete contracts, taxes, regulations, or corruption? This paper develops new tools for the study of misallocation that place minimal assumptions on firms' underlying...
Persistent link: https://www.econbiz.de/10014322699
We study the volunteer's dilemma in environments with heterogeneous preferences and private information. We characterize the efficiency properties of equilibrium, which is a departure from all the previous literature that focuses only on the probability of group success. While the probability of...
Persistent link: https://www.econbiz.de/10015072940