substitutable with manufactured goods and often exhibit considerably lower growth rates. Theory has shown that we should either …

Theory recommends aligning the tax treatment of debt and equity. A few countries, notably Belgium, have introduced an …

Evidence from hypothetical scenarios strongly suggests the existence of a sunk cost bias, the tendency to ‘throw good … psychological channels underlying such a bias is scarce. We present a laboratory experiment designed to investigate the sunk cost … bias and to test some prominent psychological mechanisms. Inspired by the hypothetical scenarios, we use a two …

Purchasing power adjusted incomes applied in cross-country comparisons are measured with bias. In this paper, we … estimate the purchasing power parity (PPP) bias in Penn World Table incomes and provide corrected incomes. The bias is … bias and the bias in consumer price index (CPI) numbers. The PPP bias and subsequent corrected incomes are measured by …

We measure individual bias in labor market expectations in German survey data and find that workers on average … pessimistic than West Germans. We find a significantly negative relationship between the pessimistic bias in job separation … expectations and wages, and a significantly positive relationship between optimistic bias in job finding expectations and …

In the expected-utility theory of the monetary value of a statistical life, the so-called dead-anyway effect discovered …