Little attention has been paid to supply- and demand-side factors explaining regional variation in youth overeducation. These factors might be drivers of a crowding out effect, where workers at a given level of education are expelled from their "matched" labour market positions by workers with a...

Explicit and implicit incentives and opportunities for mutually beneficial voluntary cooperation co-exist in many contractual relationships. In a series of eight laboratory gift-exchange experiments, we show that incentive contracts can lead to crowding out of voluntary cooperation even after...

Dewatripont and Tirole (2024) defend the morality of markets on the ground of an irrelevance result: the social production of moral actions is independent from competitive pressure on markets. No matter how strong competitive pressure is, markets perform well in diffusing signals about moral...

Explicit and implicit incentives and opportunities for mutually beneficial voluntary cooperation co-exist in many contractual relationships. In a series of eight laboratory gift-exchange experiments, we show that incentive contracts can lead to crowding out of voluntary cooperation even after...

We extend the reference DSGE model used for policy analysis at the NBB with a financial sector, by incorporating multi-period fixed-rate corporate and mortgage loans, an imperfect pass-through from policy rates to the deposit rate, and bank capital re-quirements. Adding multi-period fixed-rate...

Using high-frequency macro data from a financially deregulated regime, this paper examines whether there is any evidence of financial crowding out in India. The macroeconomic channel through which financial crowding out occurs is the link between the fiscal deficit and the interest rate...

This study estimates the impact of public debt on public investment in Central and Eastern European (CEE) economies. We implement Cross-sectionally Augmented Autoregressive Distributed Lag (CS-ARDL) model, which effectively handles cross-sectional dependence and slope heterogeneity, while...

We employ a novel regional dataset on European private investment and business R&D spanning the years 2000 to 2021, along with comprehensive historical data on European Union Structural and Investment (ESI) funds, to estimate whether ESI funds have crowding-in or crowding-out effects on private...

This paper studies the effect of government issuance on firm issuance during banking crises using transaction-level bond and loan data from 66 countries between 1991 and 2017. Governments rarely issue loans, preferring to issue in bond markets. In contrast, firms receive most of their financing...

Using a discrete choice experiment (DCE), we analyze how social comparisons and financial information influence households' preferences and trade-offs among three sustainable electricity demand behaviors: conservation actions, efficiency investments, and purchasing a green power mix. Our results...

Using high-frequency data, the paper analyzes the link between public infrastructure investment and private corporate investment in India for the decade ending 2023-24. We adopt the ARDL model to investigate the existence of cointegration and find strong evidence of the crowding-in of private...

After each economic crisis, such as the recent COVID-19 pandemic, governments have used public investment as a crucial tool to help economies recover quickly. However, a significant concern is how to structure such investments to meet the intended objectives while avoiding risks during...

Economists and management scholars have argued that the scope of incentives to increase cooperation in organizations is limited as their use signals the prevalence of free-riding among employees. This paper tests this hypothesis experimentally, using a sample of managers and employees from a...

The paper studies whether a drought in 1788 affected the outbreak of peasant revolts during the French Revolution. I construct a community-level data set with information on local drought severity and peasant uprisings in 1789. Results indicate that those more affected by the drought more often...

In this paper, we evaluate the efficiency of the French State aid plan for broadband deployment, the Plan France Très Haut Débit. According to State aid rules, public subsidies should not be substitute for private investment and should target areas with market failures. We estimate a...

Private charitable contributions play an essential role in most economies. From a policy perspective, there is concern that comprehensive government spending might crowd out private charitable donations. If perfect crowding out occurs, then every dollar spent by the government will lead to a...

Over 2010-2016, municipal debt in Germany crowded out private investment worth 1 percent of GDP. Forced to lend to municipalities by their statutes, local public banks compensated for declining municipal-debt yields by charging higher rates to firms in Germany's locally segmented credit markets....

This paper constructs a dynamic model of household consumption decisions and accordingly designs empirical analyses to identify how infrastructure investment affects private consumption. The estimation results of provincial panel data reveal that infrastructure investment can not only indirectly...

In recent years, economic research has increasingly focused on the increase in local government debt, attracting the attention of government regulators. Using data from 2006 to 2022, this study empirically examines how local government debt affects financing activities. The results reveal local...