In a world of imperfect information, reputations often guide the sequential decisions to trust and to reward trust. We consider two-player situations, where one player – the truster – decides whether to trust, and the other player – the temptee – has a temptation to...

In a world of imperfect information, reputations often guide the sequential decisions to trust and to reward trust. We consider two-player situations, where the players meet but once. One player – the truster – decides whether to trust, and the other player – the temptee...

We study the diffusion of hybrid vehicles among consumers. Using data on sales of 11 different models over seven years, we identify the effect of the penetration rate – total cumulative hybrid sales per capita – on new hybrid purchases. The penetration rate significantly affects...

Catastrophic risks differ in terms of their natural or human origins, their possible amplification by human behaviors, and the relationships between those who create the risks and those who suffer the losses. Given their disparate anatomies, catastrophic risks generally require tailored...

Eurozone members are supposedly constrained by the fiscal caps of the Stability and Growth Pact. Yet ever since the birth of the euro, members have postponed painful adjustment. Wishful thinking has played an important role in this failure. We find that governments’ forecasts are biased...

We explore a framework that could be used to assign quantitative allocations of emissions of greenhouse gases (GHGs), across all countries, one budget period at a time, as envisioned at the December 2011 negotiations in Durban. Under the two-part plan: (i) China, India, and other developing...

Countries with oil, mineral or other natural resource wealth, on average, have failed to show better economic performance than those without, often because of undesirable side effects. This is the phenomenon known as the Natural Resource Curse. This paper reviews the literature, classified...

This paper asks how strong African Public Financial Management (PFM) has become, after a decade and more of reform. How well do African PFM systems in place now facilitate effective public financial management? Where are the next challenges and how can they be met? It analyzes recent PFM...

Although the positive association between religiosity and life satisfaction is well documented, much theoretical and empirical controversy surrounds the question of how religion actually shapes life satisfaction. Using a new panel dataset, this study offers strong evidence for social and...

Based on literature and expert interviews, we developed the Crisis Leader Efficacy in Assessing and Deciding scale (C-LEAD) to capture the efficacy of leaders to assess information and make decisions in a public health and safety crisis. In Studies 1 and 2, we find that C-LEAD predicts...