Volkswirtschaftslehre

World Heritage List: Does it make sense?

Description: 

The UNESCO World Heritage List contains the 900 most treasured Sites of humanity’s culture and landscapes.nThe World Heritage List is beneficial where heritage sites are undetected, disregarded by national decision-makers, not commercially exploitable, and where national financial resources, political control and technical knowledge for conservation are inadequate.nAlternatives such as the market and reliance on national conservation list are more beneficial where the cultural and natural sites are already popular, markets work well, and where inclusion in the List does not raise the destruction potential by excessive tourism, and in times of war or by terrorists.

Caste and Punishment: The Legacy of Caste Culture in Norm Enforcement

Description: 

Well-functioning groups enforce social norms that restrain opportunism, but the social structure of a society may encourage or inhibit norm enforcement. Here we study how the exogenous assignment to different positions in an extreme social hierarchy – the caste system – affectsnindividuals’ willingness to punish violations of a cooperation norm. Although we control for individual wealth, education, and political participation, low caste individuals exhibit a muchnlower willingness to punish norm violations that hurt members of their own caste, suggesting a cultural difference across caste status in the concern for members of one’s own community. Thenlower willingness to punish may inhibit the low caste’s ability to sustain collective action and so may contribute to its economic vulnerability .

Screening, Competition, and Job Design: Economic Origins of Good Jobs

Description: 

In recent decades, many firms offered more discretion to their employees, often increasing the productivity of effort but also leaving more opportunities for shirking. These “high-performance work systems” are difficult to understand in terms of standard moral hazard models. We show experimentally that complementarities between high effort discretion, rent-sharing, screening opportunities, and competition are important driving forces behind these new forms of work organization. We document in particular the endogenous emergence of two fundamentally distinct types of employment strategies. Employers either implement a control strategy, which consists of low effort discretion and little or no rent-sharing, or they implement a trust strategy, which stipulates high effort discretion and substantial rent-sharing. If employers cannot screen employees, the control strategy prevails, while the possibility of screening renders the trust strategy profitable. The introduction of competition substantially fosters the trust strategy, reduces market segmentation, and leads to large welfare gains for both employers and employees.

World heritage: Where are we? An empirical analysis

Description: 

An empirical overview of the UNESCO World Heritage List according to various characteristics is presented. The officially stated intention of the World Heritage List is to protect global heritage. Our focus is on the imbalance of the existing List according to countries and continents. The existing distribution is compared to hypothetical distributions considered “balanced” from different points of view. Itnturns out that the World Heritage List is unbalanced with respect to a distribution of Sites according to population, area or per capita income. This paper wants to reveal facts about the existing distribution, and is designed tonhelp a reasoned discussion to emerge.

Federalism as an effective antidote to terrorism

Description: 

Many governments as well as terrorist experts see the use of military and police forces as the only
way to effectively counter terrorism. The most effective negative sanctions are considered to be
military strikes, aggressive actions (including kidnapping and killing) against individuals known
or suspected of being terrorists, or against persons supporting and harboring terrorists. Overt and
covert military and paramilitary action is also thought advisable to pre-empt and prevent actions
by terrorist groups, as well as against states suspected of hosting or tolerating terrorists. This paper
argues that decentralization constitutes a powerful antidote as it strongly reduces the incentives for
terrorists to attack and because the expected damage suffered is much smaller than in a centralized
society. It moreover strengthens society, as economic, political and social decentralization (or
polycentricity) is an essential element of a free and vigorous society. This in turn makes a society
less vulnerable to terrorist attacks. Indeed, terrorism has no chance of success against a society that
actively guards its fundamental liberal institutions, of which decentralized decision-making forms
an essential part.

Health insurance in Switzerland: A closer look at a system often offered as a model for the United States

Does the color of the collar matter? Employment and earnings after plant closure

Description: 

We investigate whether the costs of job displacement differ between blue and white collar workers. In the short-run earnings and employment losses are substantial for both groups but stronger for white collars. In the long run, there are only weak effects for blue collar workers but strong and persistent effects for white collars.

Competitive markets without commitment

Description: 

In the presence of a time-inconsistency problem with agency contracts, we show that competitive markets can implement allocations that Pareto-dominate those achieved by a benevolent government, and they induce more effort. We analyze a model with moral hazard and a two-sided lack of commitment. After agents have chosen their work, firms can modify contracts and agents can switch firms. If the ex post market outcome satisfies a weak notion of competitiveness and sufficiently separates individuals, it is Pareto superior to a government’s allocation with a complete breakdown of incentives. Moreover, competitive markets without commitment implement more effort in equilibrium under general conditions.

Dynamic causal modeling

Prolonged institutional rearing is associated with atypically large amygdala volume and difficulties in emotion regulation

Description: 

Early adversity, for example poor caregiving, can have profound effects on emotional development. Orphanage rearing, even in the best circumstances, lies outside of the bounds of a species-typical caregiving environment. The long-term effects of this early adversity on the neurobiological development associated with socio-emotional behaviors are not well understood. Seventy-eight children, who include those who have experienced orphanage care and a comparison group, were assessed. Magnetic resonance imaging (MRI) was used to measure volumes of whole brain and limbic structures (e.g. amygdala, hippocampus). Emotion regulation was assessed with an emotional go-nogo paradigm, and anxiety and internalizing behaviors were assessed using the Screen for Child Anxiety Related Emotional Disorders, the Child Behavior Checklist, and a structured clinical interview. Late adoption was associated with larger corrected amygdala volumes, poorer emotion regulation, and increased anxiety. Although more than 50% of the children who experienced orphanage rearing met criteria for a psychiatric disorder, with a third having an anxiety disorder, the group differences observed in amygdala volume were not driven by the presence of an anxiety disorder. The findings are consistent with previous reports describing negative effects of prolonged orphanage care on emotional behavior and with animal models that show long-term changes in the amygdala and emotional behavior following early postnatal stress. These changes in limbic circuitry may underlie residual emotional and social problems experienced by children who have been internationally adopted.

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