Using a discrete choice experiment (DCE), we analyze how social comparisons and financial information influence households' preferences and trade-offs among three sustainable electricity demand behaviors: conservation actions, efficiency investments, and purchasing a green power mix. Our results...

We extend the reference DSGE model used for policy analysis at the NBB with a financial sector, by incorporating multi-period fixed-rate corporate and mortgage loans, an imperfect pass-through from policy rates to the deposit rate, and bank capital re-quirements. Adding multi-period fixed-rate...

In recent years, economic research has increasingly focused on the increase in local government debt, attracting the attention of government regulators. Using data from 2006 to 2022, this study empirically examines how local government debt affects financing activities. The results reveal local...

Purpose Our study aims to evaluate the impact of infrastructure and public investment on private investment in machinery and equipment in Brazil from 1947 to 2017. The contribution of our article to the existing literature lies in providing a more comprehensive understanding of the presence or...

Explicit and implicit incentives and opportunities for mutually beneficial voluntary cooperation co-exist in many contractual relationships. In a series of eight laboratory gift-exchange experiments, we show that incentive contracts can lead to crowding out of voluntary cooperation even after...

Foreign direct investment (FDI) is of great significance to the economic development of developing countries; it infuses capital into enterprises, while propeling both technological advancement and economic efficiency. We examine whether zombie enterprises crowd out FDI inflows and whether the...

Explicit and implicit incentives and opportunities for mutually beneficial voluntary cooperation co-exist in many contractual relationships. In a series of eight laboratory gift-exchange experiments, we show that incentive contracts can lead to crowding out of voluntary cooperation even after...

This paper constructs a dynamic model of household consumption decisions and accordingly designs empirical analyses to identify how infrastructure investment affects private consumption. The estimation results of provincial panel data reveal that infrastructure investment can not only indirectly...

Dewatripont and Tirole (2024) defend the morality of markets on the ground of an irrelevance result: the social production of moral actions is independent from competitive pressure on markets. No matter how strong competitive pressure is, markets perform well in diffusing signals about moral...

We examine the extent to which environmental regulation affects innovation and which policy types provide the strongest incentives to innovate. Using a local projection framework, we estimate the regulatory impact on patenting activity over a five-year horizon. As a proxy for environmental...

We examine the impact of a carbon tax on consumer choices via a large-scale online randomized controlled trial. Higher taxes generally reduce the demand for high-carbon goods. Compared to an import tax, a carbon tax reduces demand when the tax is zero (i.e., announced but not levied) but shows...

The Covid-19 pandemic, followed by financial tightening due inflationary pressure, has raised public debt in developing economies as governments grapple with public health investments to curb the pandemic and collapse in revenues due to slower economic activity. The rise in debt may further...

We use panel data from 30 provinces of China over the period 2002-2019 to examine the effect of rising urban real estate prices on employment. Empirical results, using instrumental variable estimation, show that rising urban real estate prices have a negative and statistically significant impact...

We examine whether supply-side capacity constraints contribute to the well documented “failure to refinance” among certain borrowers who would benefit financially from doing so. We find that, conditional on the potential financial benefits of refinancing, “marginal” borrowers (those with...

This paper investigates how exploited noise trading behavior is influenced by limited attention. As the daily price limit rules of the Chinese stock market provide a scenario for the exhibition of salient payoffs, speculators elevate prices to attract noise traders with salience preferences into...

How can information substitute or complement financial incentives such as Pigouvian subsidies? We answer this question in a large-scale field experiment that cross-randomizes energy efficiency subsidies with information about the financial savings of LED lighting. Information has two effects: It...

In fundraising for public goods with private gifts, two mechanisms are known to operate in opposite directions. Cumulative contributions increase the perceived quality of the public good (crowding in) but decrease the marginal utility of contributions (crowding out). In this paper, we exploit...

We consider households decision of whether to recycle within a theoretical framework that allows for the inclusion of social and moral motivations and analyze how unit pricing and mandatory recycling a⁄ect the equilibrium in terms of whether and, in the presence of heterogenous households, the...

Do voluntary corporate prosocial efforts reduce or amplify support for government regulation? We build a theory of opposing mechanisms. Voluntary efforts could make it seem like the problem is being fixed (“Coca-Cola is already tackling plastic waste!”) and thus that regulation is...

This paper examines the causal impact of school availability on private tutoring. I use a novel IV strategy and exploit variation across counties in high school construction to separate out the effect of high school construction on private tutoring through changes in availability. I find that an...

In this study, we examine the effects of a discount as a direct price instrument and a nudge in the form of a communication strategy by shops on consumers' choice between reusable and disposable coffee cups in a neoliberal small open economy (Hong Kong). Our regression model comprises 223...

Many community organizations provide services similar to government programs, but there is limited evidence how increased government assistance affects the use of charitable services. We examine how greater access to federal nutritional aid through schoolwide free meal programs affects food bank...

This study examines the impact of public investment on private investment in South Africa using the autoregressive distributed-lag (ARDL) and nonlinear ARDL bounds testing approach for the period from 1980 to 2018. The ARDL results show that public investment crowds in private investment in the...

In recent decades, a great deal of international comparative research has examined whether social policy crowds out or crowds in social trust. Although previous studies have made significant advances, we still have much to learn. First, the proxies of social policy adopted by earlier...