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Living in two neighborhoods : social interactions in the LAB

Falk, Armin; Fischbacher, Urs; Gächter, Simon - 2003

Field evidence suggests that agents belonging to the same group tend to behave similarly, i.e., behavior exhibits social interaction effects. Testing for such effects raises severe identification problems. We conduct an experiment that avoids these problems. The main design feature is that each...

Persistent link: https://www.econbiz.de/10001771994

A theory of reciprocity

Falk, Armin; Fischbacher, Urs - 2001

This paper presents a formal theory of reciprocity. Reciprocity means that people reward kind actions and punish unkind … ones. The theory takes into account that people evaluate the kindness of an action not only by its consequences but also … the intention underlying this action. The theory explains the relevant stylized facts of a wide range of experimental …

Persistent link: https://www.econbiz.de/10001590591

Social ties in a public good experiment

Dijk, Frans van; Sonnemans, Joep; Winden, Frans A. A. M. van - 2000

The formation of social ties is examined in an experimental study of voluntary public good provision. The experimental design consists of three parts. In the first part the value orientation (attitude to a generalized other) is measured. In the second part couples play a multi-period public good...

Persistent link: https://www.econbiz.de/10001474389

Tax competition and international public goods

Bjorvatn, Kjetil; Schjelderup, Guttorm - 2000

A well known result in the tax competition literature is that tax rates are set too low in the Nash equilibrium to finance an efficient level of public consumption goods. In this model we introduce international spillovers in public goods provision and show that such spillovers reduce, and in...

Persistent link: https://www.econbiz.de/10001554661

Democratic mechanisms : double majority rules and flexible agenda costs

Gersbach, Hans - 2002

We introduce democratic mechanisms where individual utilities are not observable by other people at the legislative stage. We show that the combination of three rules can yield e±cient provision of public projects: first, flexible and double majority rules where the size of the majority depends...

Persistent link: https://www.econbiz.de/10001689878

Optimal design of intergovernmental grants under asymmetric information

Huber, Bernd; Runkel, Marco - 2003

This paper develops a theoretical explanation why it may be optimal for higher-level governments to pay categorical block grants or closed-ended matching grants to local governments. We consider a federation with two types of local governments which differ in the cost of providing public goods....

Persistent link: https://www.econbiz.de/10001750832

Hotelling tax competition

Wooders, Myrna Holtz; Zissimos, Benjamin - 2003

This paper shows how competition among governments for mobile firms can bring about excessive differentiation in levels of taxation and public good provision. Hotelling's Principle of Minimum Differentiation is applied in the context of tax competition and shown to be invalid. Instead, when an...

Persistent link: https://www.econbiz.de/10001757522

Decentralization and international tax competition

Janeba, Eckhard; Wilson, John D. - 2003

This paper models tax competition between two countries that are divided into regions. In the first stage of the game, the strategy variable for each country is the division of the provision of a continuum of public goods between the central and regional governments. In the second stage, the...

Persistent link: https://www.econbiz.de/10001733378

The taxation of financial capital under asymmetric information and the tax-competition paradox

Eggert, Wolfgang; Kolmar, Martin - 2003

This paper examines information sharing between governments in an optimal taxation framework. We present a taxonomy of alternative systems of international capital income taxation and characterize the choice of tax rates and information exchange. The model reproduces the conclusion of the...

Persistent link: https://www.econbiz.de/10001816472

Valuing public goods : the life satisfaction approach

Frey, Bruno S.; Lüchinger, Simon; Stutzer, Alois - 2004

This paper discusses a novel approach to elicit people's preferences for public goods, namely the life satisfaction approach. Reported subjective well-being data are used to directly evaluate utility consequences of public goods. The strengths of this approach are compared to traditional...

Persistent link: https://www.econbiz.de/10002039247