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作者：Nistico, Salvatore
作者单位：Sapienza University Rome
摘要：I present a model with discontinuous asset-market participation (DAMP), where all agents are non-Ricardian, and where heterogeneity among market participants implies financial-wealth effects on aggregate consumption. The implied welfare criterion shows that financial stability arises as an additional and independent target, besides inflation and output stability. Evaluation of optimal policy under discretion and commitment reveals that price stability may no longer be optimal, even absent inef...
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作者：Novta, Natalija
作者单位：International Monetary Fund
摘要：This paper theoretically and empirically investigates the relationship between local-level ethnic composition and the spread of conflict. Cross-country literature on conflict finds that ethnic diversity, and ethnic polarization in particular, are associated with greater incidence of conflict. However, the question remains as to where within ethnically diverse countries conflict begins and where and how it spreads. To study this question, I present a model in which local ethnic groups' decision...
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作者：Bursztyn, Leonardo
摘要：A large body of literature has emphasized the elite capture of democratic institutions as the explanation for the low levels of spending on public education in many low-income democracies. This paper provides an alternative to that longstanding hypothesis. Motivated by new cross-country facts and evidence from Brazilian municipalities, we hypothesize that many democratic developing countries might invest less in public education spending because poor decisive voters prefer the government to al...
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作者：Andersson, Ola; Holm, Hakan J.; Tyran, Jean-Robert; Wengstrom, Erik
作者单位：Research Institute of Industrial Economics (IFN); Lund University; University of Copenhagen; University of Vienna
摘要：Recent experimental studies suggest that risk aversion is negatively related to cognitive ability. In this paper we report evidence that this relation may be spurious. We recruit a large subject pool drawn from the general Danish population for our experiment. By presenting subjects with choice tasks that vary the bias induced by random choices, we are able to generate both negative and positive correlations between risk aversion and cognitive ability. Our results suggest that cognitive abilit...
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作者：Barth, Erling; Moene, Karl Ove
作者单位：University of Oslo
摘要：We explore how more wage equality fuels the generosity of the welfare state via political competition in elections, and how a more generous welfare state fuels wage equality via empowerment of weak groups in the labor market. Together the two mechanisms may generate a cumulative process that explains how equality multiplies, and why countries with more equal distributions of market outcomes also have stronger welfare states. The complementarity between wage setting and welfare spending can exp...
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作者：Dube, Oeindrila; Garcia-Ponce, Omar; Thom, Kevin
作者单位：New York University
摘要：Understanding how economic incentives affect illegal drug production is essential for crafting policies in response to the international drug trade. Policymakers typically face a choice between two strategies: targeting criminal groups via law enforcement, and offering producers incentives to engage in alternate activities. Yet, little is known about how the returns to alternate legal activities affect drug supply. We contribute to this literature by examining how shocks to legal commodity pri...
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作者：Lancia, Francesco; Russo, Alessia
作者单位：University of Vienna; University of Oslo
摘要：Adynamic political economy theory of fiscal policy is presented to explain the simultaneous existence of public education and pensions in modern democracies. The driving force of the model is the intergenerational conflict over the allocation of the public budget. Successive generations of voters choose fiscal policies through repeated elections. The political power of elderly voters creates the motive for adults to support public investment in the human capital of future generations since it ...
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作者：Butler, Jeffrey V.; Giuliano, Paola; Guiso, Luigi
作者单位：Louisiana State University System; Louisiana State University; University of California System; University of California Los Angeles
摘要：We investigate the relationship between individual trust and individual economic performance. We find that individual income is hump-shaped in a measure of intensity of trust beliefs. Our interpretation is that highly trusting individuals tend to assume too much social risk and to be cheated more often, ultimately performing less well than those with a belief close to the mean trustworthiness of the population. However, individuals with overly pessimistic beliefs avoid being cheated, but give ...
