We propose a novel way of measuring trust in institutions, which draws on the experimental method used to elicit time preferences. Our measure is provided in the meaningful metric of the subjective probability of trustworthiness of the trustee. In a lab‐in‐the‐field setting in the...

I show that stochastic contracts generate powerful incentives when agents suffer from probability distortion. When implementing these contracts, the principal can target probability distortions in order to inflate the agent's perceived benefits of exerting high levels of effort. This novel...

The great recession (2008) triggered an apparent discrepancy between empirical findings and macroeconomic models based on rational expectations alone. This gap led to a series of recent developments of a behavioral microfoundation of macroeconomics combined with the underlying experimental and...

Analysts associated with the Cowles Commission attached great importance to the distinction between structural and reduced-form models: in their view structural models, but not reduced-form models, allow the analysis of causal relations. They did not present clear justification for this view....

The efficiency of correlation-regression analysis would significantly expand if both of its essential variables - a dependent and an independent - conveyed the information on the dynamic rather than static state of a phenomenon under consideration. For this objective, the dynamic development of...

This short article introduces the German Cliometrics Database as the foundation for an article by Jopp and Spoerer (2024) who trace cliometric research on German history. This newly constructed database of every publication that (1) contributes to the historiography of Germany and (2) employs,...

The strict rational paradigm of neoclassical economic theory has resulted in limited exploration of emotions in managerial decision-making processes. This study attempts to address this gap by examining how emotions influence efficient managerial decision-making, generating a modern perspective...

We experimentally investigated the effects of the possibility of taking in the dictator game and the choices of passive players between the dictator game and the taking game on the distribution decisions of active players. Our main findings support our hypothesis: when the dictator game is not...

Diagnostic and contact tracing apps are an important weapon against contagion during a pandemic. We study how the content of the messages used to promote the apps influences adoption by conducting a survey experiment on approximately 23,000 Mexican adults. Respondents were randomly assigned to...

While effective preventive measures against COVID-19 are now widely known, many individuals fail to adopt them. This paper provides experimental evidence about one potentially important driver of compliance with social distancing: social norms. We asked each of 23,000 survey respondents in...