infonet-economy

Rules on abuse of dominance are used to find a balance between three objectives: 1) ensuring enough competition between firms in order to force them to be efficient and to compete on merit, 2) allowing a certain degree of profitability so that companies have incentives to become more efficient, and 3) achieving an equal distribution of wealth and business opportunities among...

We study whether the effects on registered manufacturing output of dismantling the License Raj – a system of central controls regulating entry and productionnactivity in this sector – vary across Indian states with different labor market regulations. The effects are found to be unequal across Indian states with differentnlabor market regulations. In particular, following delicensing...

In der heutigen schnelllebigen Gesellschaft ist es für den Unternehmenserfolg von entscheidender Bedeutung, dass High Potentials an die Unternehmen gebunden werden. Die adäquate Gestaltung des angebotenen Anreizsystems ist dafür im wesentlichen Maß mitverantwortlich. Das Ziel des vorliegenden Artikels besteht darin, ein mögliches Anreizsystem zu entwickeln, welches speziell auf die...

We present a new method for quantitatively documenting concerns for economic fairness. In particular we focus on the method’s potential for identifying variation in
prosociality within and across societies. Specifically, we conducted multiple dictator games per player in two small-scale societies. Each game presented the decision maker with a choice between an equitable and an...

This paper investigates the design of incentives in a dynamic adverse selection framework when agents’ production technologies display learning effects and agents’ rate of learning is private knowledge. In a simple two-period model with full commitment available to the principal, we show that whether learning effects are over- or under-exploited crucially depends on whether learning...

In the heart of the Great Crisis, amidst great uncertainty and concerns surrounding the future of capitalism, John Maynard Keynes launched his optimistic prophecy that growth and technological change would allow mankind to solve its economic problem within ancentury. He envisioned a world where people would work much less and be less oppressednby the satisfaction of material needs....

Central bankers' conventional wisdom suggests that nominal interest rates should be raised to implement a lower inflation target. In contrast, I show that the standard New Keynesian monetary model predicts that nominal interest rates should bendecreased to attain this goal. Real interest rates, however, are virtually unchanged. These results also hold in recent vintages of New...

This paper asks whether tax cycles can represent the optimal policy in a modelnwithout any extrinsic uncertainty. I show, in an economy without capital and where labor is the only choicenvariable (a Lucas-Stokey economy), that a large class of preferences exists, where cycles are optimal, as well as a large class where they are not. The larger government expenditures are, the larger...