Private banks often blame state guarantees to distort competition by giv- ing public banks the advantage of lower funding costs. In this paper I show that if borrowers perceive the public bank as supporting economic develop- ment, private banks may be able to separate firms by self selection,...

Experimental and field evidence show that people perceive and evaluate new risks differently from risks that are common. In particular, people get used to the presence of certain risks and become less eager to avoid them. We explain this observation by including risks in the reference states of...

Three results emerge from a simple experiment on imitation. First, I find behavior which strongly suggests an intention to imitate. Second, players im- itate successful other players rather than repeating successful actions. Third, to find imitation examples, players use several periods of...

The higher our aspirations, the higher the probability that we have to adjust them downwards when forming more realistic expectations later on. This paper shows that the costs induced by high aspirations are not trivial. We first develop a theoretical framework to identify the factors that...

Die Covid-19-Pandemie verursacht weltweit erhebliche Verwerfungen in Gesellschaft und Wirtschaft. Kurz- und mittelfristigen Finanzhilfen zur Abmilderung der akuten Folgen von Corona müssen so ausgerichtet werden, dass sie gleichzeitig den langfristig nötigen Wandel hin zu einer nachhaltigen...

This report provides a comprehensive overview of climate cost modelling, from the perspective of damage costs and mitigation costs respectively. It also provides guidance for policymakers on which framework shall be used to derive climate costs for different policy objectives. For both...