This paper reports the results of laboratory test of the performance of a non-point source (NPS) water pollution abatement scheme suggested by Pushkarskaya and Randall (2006). The scheme is based on voluntary participation in the non-point source pollution control program, and ties individual...

I examine a game-theoretical model of two variants of double-elimination tournaments, and derive the equilibrium behavior of symmetric players and the optimal prize allocation assuming a designer aims to maximize total effort. I compare these theoretical properties to the well-known...

The paper models the incentives of a politician to delegate the decision making power in a sovereign wealth fund to an independent external manager. It formalizes the learning-effects as well as the increase of transparency of the SWF and the rise of investment possibilities associated with...

The paper models the incentives of a politician to delegate the decision making power in a sovereign wealth fund to an independent external manager. It formalizes the learning-effects as well as the increase of transparency of the SWF and the rise of investment possibilities associated with...

In this paper, foreign aid transfers can distort individual incentives, and hence hurt growth, by encouraging rent-seeking as opposed to productive activities. We construct a model of a small growing open economy that distinguishes two effects from foreign transfers: (i) a direct positive...

Private sector corporations in the United States fall short of their potential to increase shareholders'1 wealth in a number of ways. One example is the failure to undertake profitable energy conservation investments. Explanations of this phenomenon include agency and moral hazard problems,...

We study the effect of links between politicians on corruption under prevailing clientelism. Connections between politicians increase fabricated "ghost" students to obtain more national transfers, without raising the quality or quantity of education. Bureaucratic turnover, temporary and...

This paper surveys the rapidly growing theoretical literature on international environmental agreements. The surveyed contributions are classified according to the conceivable strategies to create incentives for the participation in and compliance with environmental conventions. The proposed...

We propose a normative theory of the number of representatives based on a stylized model of a representative democracy. We derive a simple formula, a "square-root theory" which gives the number of representatives in parliament as proportional to the square root of total population. Simple...

The present stalemate in climate negotiations has led policy analysts and economists to explore the possible emergence of alternative climate regimes. This paper explores the idea of replacing international cooperation on greenhouse gas emission control with international cooperation on...