The paper analyses on an experimental basis the phenomenon of non-optimal under-diversification in portfolio choice decisions and investigates the reasons behind it. The most important obstacles for optimal diversification are studied – the correlation neglect hypothesis and the overconfidence...

Traditionally economic theory assumes that preferences are stable facilitating positive predictions of economic policy. While there is conflicting experimental evidence on the temporal stability of cooperation preferences in public goods provision, surprisingly little is known about their...

Fiscal relations between the German Lander and its communities are characterised by vertical transfers from the Lander to their municipalities. Traditionally the system is discussed vigorously as it serves allocative, redistributive and fiscal objectives at the same time which are at least...