Whenever citizens want their elected officials to employ funds efficiently, they are in need of information in order to establish accountability. We develop an agency model with imperfect monitoring where newspapers provide voters with this information. The model predicts that an informed...

Politicians seeking reelection need voters to know what they have done for them. Thus, incentives may arise to spend more money where media coverage is higher. We present a simple model to explain the allocation of public spending across jurisdictions contingent on media activity. An incumbent...

Journalism is widely believed to be crucial for holding elected officials accountable. At the same time economic theory has a hard time providing a straightforward explanation for the phenomenon of "accountability journalism". According to the common Downsian reasoning, rational voters should...

Feedback can help individuals put their performance into perspective, especially when transitioning into a new environment such as university or a different job. In a randomized field experiment we give first-year university students normatively framed relative performance feedback about their...

Little is known about the effectiveness of defaults whenmoving the target outcome requires substantial post-intervention effort. In two field experiments, we change the university exam sign-up procedure to “opt-out” for a single exam (Exp1), and for many exams (Exp2). Both interventions...

In a randomized field experiment, we give first-year students in higher education feedback on their relative performance and show that the type of feedback matters, as feedback increases performance only if it informs the student that they placed above average in the past. We reproduce the...

Nothing is known about the effectiveness of defaults when moving the target outcome requires substantial post-intervention effort. With two field experiments in higher education, we investigate howdefaults fare in such situations. We change the exam signup procedure to "opt-out" for a single...

This paper complements previous studies on the effects of health on wages by addressing the problems of unobserved heterogeneity, sample selection, and endogeneity in one comprehensive framework. Using data from the German Socio-Economic Panel (GSOEP) we find the health variable to suffer from...

Being able to read and write is one of the most important skills in modern economies. Literacy frequently is a prerequisite for employment and its relevance for productivity and wages is magnified by the fact that it is only through literacy that many other skills become usable. More so than for...

A large share of students in higher education graduates with delay or fails to obtain a degree at all. In our field experiment, students can sign a non-binding agreement and self-commit to staying on track for graduation. We provide first evidence that soft commitment devices can enhance...