We experimentally test whether intentional and observable discriminatory pay of symmetric agents in the Winter (2004) game causes low paid agents to reduce effiort. We control for intentionality of wages by either allowing a principal to determine wages or by implementing a random process. Our...

We experimentally test whether intentional and observable discriminatory pay of symmetric agents in the Winter (2004) game causes low paid agents to reduce effort. We control for intentionality of wages by either allowing a principal to determine wages or by implementing a random process. Our...

This paper studies the relationship between natural disasters and economic growth in the disaster-prone country of Iran, using a spatial Durbin panel model and covering the time period from 2010 to 2016 and including 29 provinces. The results of the empirical investigation suggest that there is...

Amidst a sharp increase in household debt levels, many countries have substantially reformedtheir consumer bankruptcy regulations. I first classify the mechanisms triggered by current U.S.and European bankruptcy regulations and then evaluate these mechanisms within a hidden actionmodel. I...

A popular view of limited liability in financial contracting is that it is the result of societal preferences against escessive penalties. The view of most financial economists is instead that limited liability emerged as an optimal institution when, in the absence of a clear limit on economic...

In the light of increasing household debt, several countries are substantiallyreforming their consumer bankruptcy regulations. This paperfirst classifies the mechanisms triggered by both U.S. and European bankruptcyregulations. Then, I test these mechanisms within a hidden actionmodel. Here, I...

Consumer bankruptcy regulation in the United States as well as in many other countries allow consumers to petition for a partial debt discharge. Usually, a debt release is possiblewhen the debtor behaves in the creditors best interest and after filing for bankruptcy signs over her entire...