infonet-economy

The LEN-Model (referring to "linear functions", "exponential utility" and "normal distribution" as major properties of the LEN-Model) allows to study profit-sharing agreements in a team of principal and agent. First, this article describes and analyses the LEN-Model again (which was originally presented in 1987 by the same author). Second, agency costs…

We use a change in the voting procedures of one of the two chambers of the Swiss parliament to explore how transparency affects the voting behavior of its members. Until 2013, the Upper House (Council of States) had voted by a show of hands. While publicly observable at the time of the vote, legislators' decisions could only be verified ex post through the time-consuming…

First generation endogenous growth models had the counterfactual implication that the long-term growth of per-capita GDP increased with the population size. Two influential growth paradigms, the semi-endogenous and the second generation fully endogenous, eliminated this strong scale effect. Both solutions have useful aspects and
insights, but very different policy implications…