This paper analyzes the e¤ectiveness of the tax and transfer systemsin the European Union and the US to act as an automatic stabilizer in the currenteconomic crisis. We …nd that automatic stabilizers absorb 38 per cent of a propor-tional income shock in the EU, compared to 32 per cent in the...

We introduce a new discounted cash flow model which adopts the diversification effectof multi-business firms. We face two challenges: One is examining how different diversificationextents can affect the firm value due to risk reduction, and the other is modelingsegment-specific cash flows and...

A government agency wants an infrastructure-based public service to be provided. Our experimental study compares two different modes of provision. In a public-private partnership, the two tasks of building the infrastructure and operating it are delegated to one private contractor (a...

This paper compares two prominent empirical measures of individualrisk attitudes | the Holt and Laury (2002) lottery-choice task and the multi-itemquestionnaire advocated by Dohmen, Falk, Human, Schupp, Sunde and Wagner(forthcoming) | with respect to (a) their within-subject stability over time...

The theoretical contribution of this paper is to regard teachers’ evaluations with a prognostic claim aboutstudents’ future academic ability as a result of a special social situation in the classroom. We assume thatafter teachers have framed the social situation, particular scripts of action...

The co-movement of stocks and of fundamentals changes across the business cycle. Empiricalstudies have shown that the correlation of stock returns is stronger in crisis. Weshow that the correlation of fundamentals is the highest during crisis using a large sampleof quarterly firm revenues...

In a large-scale laboratory experiment, we investigate whether subjects’ scores on the cognitivereflection test (CRT) are related to their susceptibility to the base rate fallacy, the conservatismbias, overconfidence, and the endowment eect.

We study a multi-task principal-agent problem in which tasks can be in directconflict with each other. In theory, it is difficult to induce a single agent toexert efforts in two conflicting tasks, because effort in one task decreases thesuccess probability of the other task. We have conducted an...

The authors investigated how the presence or absence of monetary incentives in a prisoner’sdilemma game may influence research outcomes. Specifically, the predictive power of the BigFive personality traits on decisions in an incentivized (N = 60) or hypothetical (N = 60)prisoner’s dilemma...

The substantial aim of this paper is to integrate the main idea of 'Pygmalion' orself-fullling prophecy research (Rosenthal and Jacobson, 1968; Jussim and Har-ber, 2005) into the general subjective expected utility framework about inequalityin educational opportunities (Breen and Goldthorpe, 1997;...