Social norms and intrinsic motivations lead to voluntary environmentally responsible behaviour even in the absence of environmental policy. The paper shows that the introduction of environmental policy may lead to a reduction of voluntary abatement and sometimes may increase emissions and...

Der Beitrag beschäftigt sich mit der Behandlung des Staates im neuen Europäischen System Volkswirtschaftlicher Gesamtrechnungen (ESVG 1995). Er stellt die Abgren-zung des Sektors Staat, die Einnahmen und Ausgaben und die Verbuchung des Staates in der Entstehungs-, Verteilungs-, und...

We discuss the two-way link between culture and economic growth. We present a model of endogenous technical change where growth is driven by the innovative activity of entrepreneurs. Entrepreneurship is risky and requires investments that affect the steepness of the lifetime consumption profile....

This paper provides a model of social hysteresis whereby long, deep recessions demotivate workers and thereby lead them to change their work ethic. In switching from a pro-work to an anti-work identity, their incentives to seek and retain work fall and consequently their employment chances fall....

Private school students do not always perform better in standardized tests. We suggest that this may be explained by choice of private schooling by less capable students in countries where government schools are better suited to talented students. To assess the empirical relevance of this...

Child labor is often condemned as a form of exploitation. I explore how the notion of exploitation, as used in everyday language, can be made precise in economic models of child labor. Exploitation is defined relative to a specific social welfare function. I first show that under the standard...

We build a dynamic capital structure model to study the link between systematic risk exposure and debt maturity, as well as their joint impact on the term structure of credit spreads. Our model allows for time variation and lumpiness in the maturity structure. Relative to short-term debt,...

We study the trading dynamics in an asset market where the quality of assets is private information of the owner and finding a counterparty takes time. When trading of a financial asset ceases in equilibrium as a response to an adverse shock to asset quality, a large player can resurrect the...