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Contest success functions: the common-pool perspective

The axiomatic route to the foundation of contest success functions (CSF) has proved to be both useful and prolific. The standard approach in the literature is based on the decision-theoretic notion that choice probabilities should be independent of irrelevant alternatives (Skaperdas, Economic Theory 1996). The present paper develops an alternative approach that suggests itself once…

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English / 01/06/2015

The ambiguity triangle: uncovering fundamental patterns of behavior under uncertainty

The probability triangle (also called the Marschak-Machina triangle) allows for compact and intuitive depictions of risk preferences. Here, we develop an analogous tool for choice under uncertainty - the ambiguity triangle - and show that indifference curves in this triangle capture preferences for unknown probabilities. In particular, the ambiguity triangle allows us to examine…

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English / 01/06/2015

Nazi indoctrination and anti-Semitic beliefs in Germany

Attempts at modifying public opinions, attitudes, and beliefs range from advertising and schooling to "brainwashing." Their effectiveness is highly controversial. In this paper, we use survey data on anti-Semitic beliefs and attitudes in a representative sample of Germans surveyed in 1996 and 2006 to show that Nazi indoctrination--with its singular focus on fostering racial…

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English / 01/06/2015

The economics of effective leadership

Economists have typically assumed that the only way for leaders to get people to do things is to use carrots (e.g., pay raises) or sticks (e.g., threats of firing) to incentivize a desired behavior. One of the important contributions of recent research on leadership is to test the extent to which this really is true. Can leaders also motivate and inspire workers by their statements…

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English / 01/06/2015

Agricultural productivity and structural transformation : evidence from Brazil

We study the effects of the adoption of new agricultural technologies on structural transformation. To guide empirical work, we present a simple model where the effect of agricultural productivity on industrial development depends on the factor bias of technical change. We test the predictions of the model by studying the introduction of genetically engineered soybean seeds in Brazil…

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English / 01/06/2015

China – from investment-led to innovation-led growth

As China's economy becomes more liberalized, the authorities will scrap growth targets altogether and turn to the more modest notion of growth forecasts.

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English / 01/06/2015

The Rise of the Machines: Automation, Horizontal Innovation and Income Inequality

We construct an endogenous growth model with automation (the introduction of machines which replace low-skill labor) and horizontal innovation. The economy follows three phases. First, low-skill wages are low, which induces little automation, and income inequality and labor’s share of GDP are constant. Second, as low-skill wages increase, automation increases which reduces the labor…

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English / 01/06/2015

Aktionärbindungsvertrag als Unterstützungsmassnahme bei der Nachfolge- und Nachlassregelung

Spätestens mit dem Ableben eines Unternehmers geht dessen Unternehmer an seine Erben über. Dabei entstehen oft Probleme, insbesondere wenn das Kapital und die Führung in einem Patron vereint sind. Um die Fortführung des Unternehmens in personeller wie auch in sachlicher Hinsicht zu sichern, bedarf es einer frühzeitigen Planung der Unternehmensnachfolge. Soll eine Kapitalgesellschaft…

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Deutsch / 01/06/2015

Throwing Sand in the Wheels: How Foreign Trade Distortions Slowed LDC Export-Led Growth

This new eBook argues that least developed countries were hard hit by these barriers. Drawing on Global Trade Alert data, it argues that these barriers reduced these nations’ exports by 30% during the period 2009 to 2013 – over a quarter of a trillion US dollars in total.

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English / 01/06/2015

«Grexit» ist der falsche Weg : Schuldenkrise in Griechenland

Wie hart oder nachgiebig sollen Griechenlands Gläubiger gegenüber dem Mittelmeerstaat auftreten? In einem Gastbeitrag warnen drei Ökonomen vor einem Festhalten an starren Vereinbarungen.

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Deutsch / 27/05/2015

Minimum wage law for domestic workers: impact evaluation of the indian experience

We conduct an impact evaluation of the minimum wage legislation for domestic workers that was introduced in four states in India over the period of 2004-2012. Combining the matching and difference-in-difference estimation strategies we estimate both the short-run and long-run impacts of the legislation on real wages and on employment opportunities. Our results show a positive impact…

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English / 22/05/2015

Bad boys: how criminal identity salience affects rule violation

We conducted an experiment with 182 inmates from a maximum security prison to analyze the impact of criminal identity salience on cheating. The results show that inmates cheat more when we exogenously render their criminal identity more salient. This effect is specific to individuals who have a criminal identity, because an additional placebo experiment shows that regular citizens do…

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English / 01/05/2015

Counting on count data models : Quantitative policy evaluation can benefit from a rich set of econometric methods for analyzing count data

Often, economic policies are directed toward outcomes that are measured as counts. Examples of economic variables that use a basic counting scale are number of children as an indicator of fertility, number of doctor visits as an indicator of health care demand, and number of days absent from work as an indicator of employee shirking. Several econometric methods are available for…

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English / 01/05/2015

Apathy in schizophrenia as a deficit in the generation of options for action

Negative symptoms are a core feature of schizophrenia and have been grouped into 2 factors: a motivational factor, which we refer to as apathy, and a diminished expression factor. Recent studies have shown that apathy is closely linked to functional outcome. However, knowledge about its mechanisms and its relation to decision-making is limited. In the current study, we examined…

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English / 01/05/2015

Debt into growth: how sovereign debt accelerated the first industrial revolution

Why did the country that borrowed the most industrialize first? Earlier research has viewed the explosion of debt in 18th century Britain as either detrimental, or as neutral for economic growth. In this paper, we argue instead that Britain’s borrowing boom was beneficial. The massive issuance of liquidly traded bonds allowed the nobility to switch out of low-return investments such…

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English / 01/05/2015

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