The rapidly changing environment of the transition may create special problems for calculation of index numbers that require a fixed basket of goods and outlets. Using referent-level data we find that using a fixed-weight Laspeyres Index may overstate inflation rates by approximately 5 per cent...

Many economists find that classroom experiments using the Double Auction (DA) trading institution are an effective pedagogical tool in introductory economics classes. Results of such experiments reliably illustrate the concepts and descriptive relevance of the theory of competitive equilibrium...

Using data from the Luxembourg Income Study we analyze state welfare generosity to immigrants and natives in Sweden, Norway, Belgium, Germany and the USA. The distinction between EU and non-EU immigrants proves to be an interesting one. We find a substantial social income gap between non-EU...

We investigate behavioral responses of judges and prosecutors to more severe punishments by analyzing the effects of Truth-in-Sentencing (TIS) laws in a large sample of individual criminal cases. The TIS laws raised effective punishment by requiring offenders to serve at least 85% of their...

In this paper, I analyze the effects of monitoring on an agent’s incentives in a two-period principal-agent model in which the agent decides on his effort and corruptibility. The agent’s type and strategy are unknown to the principal. I compare incentive-compatible wages under three...

The novelty of this work is the presentation of the theoretical framework that allows to model annonced change of the monetary regime. I analyze behavior of small open economy that announced to adopt a monetary policy regime with focus on offsetting nominal exchange rate changes in given number...

The Baron-Ferejohn multilateral bargaining model predicts a payoff-unique stationary subgame perfect equilibrium (SSPE) in which players' equilibrium strategies are not uniquely determined. In this note, we present a modified version of the Baron-Ferejohn model by introducing veto players and...

This paper analyzes the causal effect of investment incentives on regional allocation of foreign direct investment (FDI) in the Czech Republic during 2001-2007. Investment incentives institutional setup provided foreign investors with financial incentives depending on the particular district...

We try to better understand the comparative advantages of structural and behavioral remedies of deregulation in electricity markets, an eminent policy issue for which the experimental evidence is scant and problematic. Specifically, we investigate theoretically and experimentally the effects on...

Credit contracting between a lender with monopoly market power and a small start-up entrepreneur may lead to the rejection of projects whose expected benefits are higher than their total costs. This inefficiency may be eliminated by government support in the form of credit guarantees or interest...