We design an artefactual field experiment to study the relationship between joint-liability lending and adverse selection, moral hazard and risk preferences. While theories concerning joint-liability lending have highlighted its ability to mitigate adverse selection in credit transactions, our...

Bidders on eBay frequently engage in sniping: that is, submitting a bid seconds before an auction closes. Using a field experiment, we attempt to measure the size of the benefit of sniping (if any). To do this we selected pairs of auctions that were as identical as possible (same item, same...

When the provision of public goods requires contributions from individuals with different abilities, solicitation of efficient voluntary contributions from heterogeneous individuals becomes important. Blood banks are one such public resource. Blood banks perform a challenging task in ensuring a...

The paper investigates the effect of .99 price endings on consumer demand by means of a field experiment. Results tail behind other contributions showing how .99-endings can be ineffective, casting doubts on their widespread use among retailers. When the .99-ending price is removed an increase...

This paper puts forward suggestions that could improve the efficiency of field experiments as they are currently carried out in experimental economics. Two recommendations are made: (1) Prior to the actual study, economic field experiments should include sample size calculations that confirm...

This paper sets up a monetary growth model with an endogenous liquidity constraint on consumption, and uses it to analyze the economy's long-run response to money growth. We find that a rise in the rate of money growth will increase the consumer's financial deepening, thereby leading to a...

This paper applies Kocherlakota and Yi's (1997) model to discuss the effects of public investment and tax policies (tax burden and tax mix) on economic growth using Taiwanese data from 1960 to 2010. These effects changed structurally in 1990. First, public investment had no impact on economic...

Billing abuses exist when an expert charges the expert hourly rate but offers quality that does not match the charge. This paper provides a game-theoretic analysis so that, when the quality of an expert's services is unobservable to consumers before purchase, hourly rate competition can...

This paper sets up an endogenous growth model with monopolistic competition in the product market and efficient bargaining in the labor market, and uses it to examine the impacts of union power, monopoly power and tax policy on the long-run economic growth rate. Some main findings emerge from...

Few studies on political budget cycles have directly tested the public budget against changes in the composition of public spending. Meanwhile, previous studies implicitly assume that the executive has full discretionary power over fiscal policy, neglecting the role of the legislature in...