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Endogenous Growth, Backstop Technology Adoption and Optimal Jumps

Valente, Simone - 2009

We study a two-phase endogenous growth model in which the adoption of a backstop technology (e.g. solar) yields a …-driven and the optimal timing of technology switching is determined by welfare maximization. The optimal path exhibits discrete … jumps in endogenous variables: technology switching implies sudden reductions in consumption and output, an increase in the …

Persistent link: https://www.econbiz.de/10011753168

Decision Processes of a Suicide Bomber – Integrating Economics and Psychology

Pittel, Karen; Rübbelke, Dirk T. G. - 2009

psychological concepts of cognitive dissonance and terror management theory into our economic analysis, we demonstrate why … – although predicted by standard economic theory – defection is a phenomenon rarely observed. We finally present some policy …

Persistent link: https://www.econbiz.de/10011753170

Banking-on-the-Average Rules

Gersbach, Hans; Hahn, Volker - 2009

In this paper, we argue for a regulatory framework under which a bank’s required level of equity capital depends on the equity capital of its peers. Such bankingon- the-average rules are transparent and could also be combined with the current regulatory framework. In addition, we argue that...

Persistent link: https://www.econbiz.de/10011753171

Club Theory and Household Formation

Gersbach, Hans; Haller, Hans - 2009

The relationship between our general equilibrium model with multi- member households and club models with multiple private goods is investigated. The main distinction in the definitions consists of the equilibrium concepts. As a rule, competitive equilibria among house- holds where no group of...

Persistent link: https://www.econbiz.de/10011753174

Controlling externalities in the presence of rent seeking

MacKenzie, Ian A. - 2009

Contests are a common method to describe the distribution of many different types of rents. Yet in many of these situations the utilisation of the prize plays an important role in determining agents payoffs and incentives. In this paper, we investigate the incentives to expend effort for a prize...

Persistent link: https://www.econbiz.de/10011753175

Short-term Deviations from Simple Majority Voting

Fahrenberger, Theresa - 2009

I discuss instances where a committee wants to deviate from the simple majority rule by adopting an alternative voting scheme for two consecutive binary ballots. The alternative voting rule, called Minority Voting as an Exception (MVE), works as follows: In the first ballot a b-majority rule is...

Persistent link: https://www.econbiz.de/10011753179

Tax Contracts and Elections

Gersbach, Hans; Schneider, Maik T. - 2009

In this paper we examine the impact of tax contracts as a novel institution on elections, policies, and welfare. We consider a political game in which three parties compete to form the government. Parties have policy preferences about the level of public-good provision and benefit from perks...

Persistent link: https://www.econbiz.de/10011753187

Resource Wealth, Innovation and Growth in the Global Economy

Peretto, Pietro F.; Valente, Simone - 2010

faster (slower) growth in the resource-rich economy. The resource-poor economy adjusts to the shock by raising (reducing) the …

Persistent link: https://www.econbiz.de/10011753188

The Larger the Better? The Role of Interest-Group Size in Legislative Lobbying

Schneider, Maik T. - 2010

We develop a model of legislative lobbying where policy proposals are endogenous. We show that a policy proposer with preferences tilted towards one lobby may be induced by an increase in that interest group's size to propose policies geared towards the opposing lobby. Hence, a larger lobby size...

Persistent link: https://www.econbiz.de/10011753190

Trading Off Generations: Infinitely-Lived Agent Versus OLG

Schneider, Maik T.; Traeger, Christian; Winkler, Ralph - 2010

The prevailing literature discusses intergenerational trade-offs predominantly in infinitely-lived agent models despite the finite lifetime of individuals. We discuss these trade-offs in a continuous time OLG framework and relate the results to the infinitely-lived agent setting. We identify...

Persistent link: https://www.econbiz.de/10011753192