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Policy Choice: Theory and Evidence from Commitment via International Trade Agreements

Limão, Nuno; Tovar, Patricia - C.E.P.R. Discussion Papers - 2009

Why do governments employ inefficient policies to redistribute income towards special interest groups (SIGs) when more efficient ones are available? To address this puzzle we derive and test predictions for a set of policies where detailed data is available and an efficiency ranking is feasible:...

Persistent link: https://www.econbiz.de/10005136624

Cost of Delay, Deadlines and Endogenous Price Leadership

Pastine, Ivan; Pastine, Tuvana - C.E.P.R. Discussion Papers - 2001

This Paper analyses endogenous price leadership in a duopolistic market with differentiated products and symmetrically informed firms. We study the effects of deadlines and discounting in a standard endogenous leadership model. We show that there will be occasional changes in the identity of the...

Persistent link: https://www.econbiz.de/10005667041

Currency Risk in Currency Unions

Kriwoluzky, Alexander; Müller, Gernot; Wolf, Martin - C.E.P.R. Discussion Papers - 2013

Sovereign yield spreads within currency unions may reflect the risk of outright default. Yet, if exit from the currency union is possible, spreads may also reflect currency risk. In this paper, we develop a New Keynesian model of a small member country of a currency union, allowing both for...

Persistent link: https://www.econbiz.de/10011084136

Investment and Demand Uncertainty

Guiso, Luigi; Parigi, Giuseppe - C.E.P.R. Discussion Papers - 1996

-uncertainty relationship is in principle ambiguous and can vary greatly across groups of firms depending on the degree of irreversibility of …

Persistent link: https://www.econbiz.de/10005123802

Five Open Questions About Prediction Markets

Wolfers, Justin; Zitzewitz, Eric - C.E.P.R. Discussion Papers - 2006

Interest in prediction markets has increased in the last decade, driven in part by the hope that these markets will prove to be valuable tools in forecasting, decision-making and risk management - in both the public and private sectors. This paper outlines five open questions in the literature,...

Persistent link: https://www.econbiz.de/10005504341

Intergovernmental Grants as Signals and the Alignment Effect: Theory and Evidence

Bracco, Emanuele; Lockwood, Ben; Porcelli, Francesco; … - C.E.P.R. Discussion Papers - 2015

This paper provides a simple political agency model to explain the effect of political alignment between different tiers of government on intergovernmental grants and election outcomes. Key features of the model are: (i) rational voters interpret public good provision as a signal of incumbent...

Persistent link: https://www.econbiz.de/10011165654

Radio and the Rise of the Nazis in Prewar Germany

Adena, Maja; Enikolopov, Ruben; Petrova, Maria; … - C.E.P.R. Discussion Papers - 2013

How far can the media undermine democratic institutions, and how persuasive can media be in ensuring public support for a dictator’s policies? We study this question in the context of Germany between 1929 and 1939. Using quasi-random geographical variation in radio availability, we show that...

Persistent link: https://www.econbiz.de/10011083247

Higher Bars for Incumbents and Experience

Gersbach, Hans; Müller, Markus - C.E.P.R. Discussion Papers - 2012

candidates offer the same vote-share threshold, that it exceeds 50 percent, and that it is socially optimal. The higher threshold … of getting re-elected with the higher bar. The socially optimal vote threshold is increasing in the value of experience …. All of the above conclusions would hold if the optimal threshold were set instead by law. …

Persistent link: https://www.econbiz.de/10011083310

The Dark Side of the Vote: Biased Voters, Social Information, and Information Aggregation Through Majority Voting

Morton, Rebecca; Piovesan, Marco; Tyran, Jean-Robert - C.E.P.R. Discussion Papers - 2012

We experimentally investigate information aggregation through majority voting when some voters are biased. In such situations, majority voting can have a “dark side”, i.e. result in groups making choices inferior to those made by individuals acting alone. We develop a model to predict how...

Persistent link: https://www.econbiz.de/10011083707

Benchmarking Politicians

Estache, Antonio; Foucart, Renaud - C.E.P.R. Discussion Papers - 2013

threshold, with risk-averse social planners, good judges increase the incentive-compatible punishment of politicians, at the …

Persistent link: https://www.econbiz.de/10011083784