An essential difference between the design of the Swedish and the US in-work tax credit systems relates to their functional forms. Where the US earned income tax credit (EITC) is phased out and favours low and medium earnings, the Swedish system is not phased out and offers 17 and 7 per cent tax...

Because the effectiveness of payment for ecosystem services (PES) programs depends on landowners’ engagement, understanding the relationship between the type of payment and participation is a key issue. This paper reports on a choice experiment that quantifies landowners’ preferences for...

Using seven rounds of household survey data that span more than a decade, this paper analyzes the determinants of household fuel choice in urban China. Unlike the existing studies, we use an empirical strategy that takes into account the potential heterogeneous effects of socio-economic factors...

This paper examines whether the subjective well-being of migrants is responsive to fluc- tuations in macroeconomic conditions in their country of origin. Using the German Socio- Economic Panel for the years 1984 to 2009 and macroeconomic variables for 24 countries of origin, we exploit...

This paper investigates the strategic interactions between carbon taxation by a resource-consumers’ coalition and (wellhead) energy pricing by a producers’ cartel under possible innovation in a cheap carbon-free technology through a dynamic game. The arrival time of innovation is uncertain,...

In light of the empirical evidence on clientelism and ethno-regional favouritism in African politics, the present paper examines the relationship between ethnic divisions and clientelism. Specifically, we ask whether – and what type of – ethnic divisions affect the experiences with,...

The objective of this paper is to study if taxpayers behave in a loss averse manner when filing their tax returns. This is important for tax design but also for understanding human behavior in general. The predictions of prospect theory can be contrasted to those of expected utility theory. We...

Household-level diversification of human capital investments is investigated. A simple model is developed, followed by an empirical analysis using 2000-2007 data from the rural Amhara region of Ethiopia. Diversification would imply negative siblings’ dependency and be more important in more...

The effects of older sisters’ and brothers’ literacy on the annual school entry and primary school grade progress probabilities of boys and girls are estimated using within-household variation. Older siblings’ literacy has positive effects, especially for same-sex siblings. The literacy of...

While many earlier studies have found that people’s maximum willingness to pay for having a good is often substantially lower than their minimum willingness to accept not having it, more recent experimental evidence suggests that this discrepancy vanishes for standard consumption goods when an...