Motivated by recent disasters, this paper analyzes the risk sharing aspect in a federation. The regions can be hit by a shock leading to losses that occur with an exogenous probability and in a stochastically independent way. The regions can spend effort on self-insurance to reduce the size of...

Volunteering plays a prominent role in the charitable provision of goods and services, yet we know relatively little about why individuals spend time and money to the charity. Assuming that volunteering is a consumption good, we analyze the determinants of individuals' charitable cash donations...

We provide a solution to the free-rider problem in the provision of a public good. To this end we define a biased indirect contribution game which provides the efficient amount of the public good in non-cooperative Nash equilibrium. No confiscatory taxes or other means of coercion are used. We...

This paper investigates the potential of maternal and infant health programs to improve the life expectancy of women and children. We study a program trialed 1931-33 in seven Swedish medical districts, assembling individual data from parish records and aggregate data from annual reports of...

Exemptions from costly policy measures are frequently applied to alleviate financial burdens to specific market participants. Using a stated-choice experiment with around 6,000 German household heads, we test how exemptions for low-income households and energy-intensive companies influence the...

There is growing evidence that ethnic divisions and conflict experience affect social capital and economic interactions, in both positive and negative ways. However, recent work has suggested that the experience of electoral violence in Kenya does not correlate with laboratory behavior between...

Obtaining significant levels of cooperation in public good and environmental games, under the assumption of players being purely selfish, is usually prevented by the problem of freeriding. Coalitions, in fact, generally fail to be internally stable and this cause a serious underprovision of the...

Based on a survey among more than 5,000 German households and a single-binary choice experiment in which we randomly split the respondents into two groups, this paper elicits both households’ willingness to pay (WTP) for power supply security and their willingness to accept (WTA) compensations...

The production of electricity on the basis of renewable energy technologies is a classic example of an impure public good. It is often discriminatively financed by industrial and household consumers, such as in Germany, where the energy-intensive sector benefits from a far-reaching exemption...

Based on hypothetical responses originating from a large-scale survey among about 6,000 German households, this study investigates the discrepancy in willingness-to-pay (WTP) estimates for green electricity across single-binary-choice and open-ended valuation formats. Recognizing that...