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This article experimentally examines voluntary contributions when group members' marginal returns to the public good vary. The experiment implements two marginal return types, low and high, and uses the information that members have about the heterogeneity to identify the applied contribution...
Persistent link: https://www.econbiz.de/10013128231
Households "sort" across neighborhoods according to their wealth and their preferences for public goods, social characteristics, and commuting opportunities. The aggregation of these individual choices in markets and in other institutions influences the supply of amenities and local public...
Persistent link: https://www.econbiz.de/10013138319
Research in behavioral public finance has blossomed in recent years, producing diverse empirical and theoretical insights. This article develops a single framework with which to understand these advances. Rather than drawing out the consequences of specific psychological assumptions, the...
Persistent link: https://www.econbiz.de/10013101287
We present a dynamic model of free riding in which n infinitely lived agents choose between private consumption and contributions to a durable public good g. We characterize the set of continuous Markov equilibria in economies with reversibility, where investments can be positive or negative; and...
Persistent link: https://www.econbiz.de/10013108603
Does an economics education affect an individual's behavior? While it has been shown that choices made by those who have studied economics are different, what is unclear is whether differences in behavior are, in fact, due to the education or simply reflect the fact that those who choose to...
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This paper studies how voters' selective ignorance interacts with policy design by political candidates. It shows that the selectivity empowers voters with extreme preferences and small groups, divisive issues attract most attention and public goods are underfunded. Finer granularity of...
Persistent link: https://www.econbiz.de/10012943578