infonet-economy

This contribution shows that for certain classes of insurance risks, pricing can be based on expected values under a probability measure P* amounting to quasi risk-neutral pricing. This probability measure is unique and optimal in the sense of minimizing the relative entropy with respect to the actuarial probability measure P, which is a common approach in the case of incomplete...

Environmental markets have several institutional features that provide a new context for the use of auctions and that have not been studied previously. This paper reports on laboratory experiments testing three auction forms — niform and discriminatory price sealed-bid auctions and an ascending clock auction. We test the ability of subjects to tacitly or explicitly collude in order...

The paper re-examines Sweden’s price level targeting during the 1930s which is regarded as a precursor of today’s inflation targeting. According to conventional wisdom, the Riksbank was the first central bank to adopt price level targeting, although in practice giving priority to exchange rate stabilisation. Based on Bayesian econometric techniques and the evaluation of new archival...

We use the 1993 wave of the AHEAD data set to estimate a game-theoretic model of families' decisions concerning the provision of informal and formal care for elderly individuals. The outcome is a Nash equilibrium where each family member jointly determines her consumption, transfers for formal care, and allocation of time to informal care, market work, and leisure. We use the...

This paper presents a new incentive compatible method for measuring confidence in own know-ledge. This method consists of two parts. First, an individual answers several general knowledge questions. Second, the individual chooses among three alternatives: (1) one question is selected at random and the individual receives a payoff if he or she has answered this question correctly; (2...

The paper investigates the relationship between pro-social norms and its implications for improved environmental outcomes. This is an area, which has been neglected in the environmental economics literature. We provide empirical evidence to demonstrate a robust link between perceived environmental cooperation (reduced public littering) and
increased voluntary environmental...

Die ökonomische Analyse des Glücks anerkennt, dass wirtschaftliche Aktivität kein Selbstzweck ist, sondern nur insoweit von Wert, als sie zur Wohlfahrt des Menschen beiträgt. Dabei wird die individuelle Wohlfahrt näherungsweise über Befragungen zum subjektiven Wohlbefinden gemessen. Darauf aufbauend lässt sich empirisch untersuchen, inwiefern wirtschaftliche Bedingungen und...