infonet-economy

To examine the impact of globalization on managerial compensation, we consider a matching model where a number of firms compete both in the product market and in the managerial market. We show that globalization, i.e. the simultaneous integration of product markets and managerial pools, leads to an increase in the heterogeneity of managerial salaries. Typically, while the most able...

Die Abstufung der Krankenkassenprämien nach Rauchern und Nichtrauchern würde einen Schritt weg von der Einheitsprämie bedeuten. Die Autoren des folgenden Beitrags kommen in ihrer ökonomischen Analyse zum Schluss, dass diese Abstufung die Effizienz der gesetzlichen Krankenversicherung verbessern würde

A new theoretical model is developed which describes the structure of competition for attention and characterizes equilibria. The exogenous fundamentals of an attention economy are the space of receiving subjects with their attention capacity, and the potential set of competing firms (senders) with their radiation technology. The endogenous variables explained by the theory are...

This paper analyzes an overlapping generation model of redistribution and public good provision under repeated voting. Expenditures are financed through age-dependent taxation that distorts human capital investment. Taxes redistribute income both across skill groups and across generations. We focus on politico-economic Markov equilibria and contrast these with the Ramsey allocation...

Theoretically, a risk avers consumer takes a deductible if the premium rebate (far) exceeds his/her expected out-of-pocket expenditures. In the absence of risk equalization, insurers are able to offer high rebates because those who select into a deductible plan have below-average expenses. This paper shows that, for high deductibles, such rebates cannot be offered if risk...

Cross-disciplinary ‘happiness research’ has made big progress in the measurementnof individual welfare. This development makes it tempting to pursue the old dream ofnmaximizing aggregate happiness as a social welfare function. However, we postulate that thenappropriate approach is not to maximize aggregate happiness in seeking to improve outcomesnby direct policy interventions. The...

As previously argued, the correlation between included and omitted regressors generally causes inconsistency of standard estimators for count data models. Using a specific residual function and suitable instruments, a consistent generalized method of moments estimator can be obtained under conditional moment restrictions. This approach is extended here by fully exploiting the model...

Complementing market-based policy instruments with conflict analysis approaches provides a wider understanding of market situations and allows to identify minimal requirements regarding needs, power and conflict dynamics. If these are not met, a market cannot be successfully introduced or a liberalization process implemented. Conflict analysis offers a language better suited to the...

The trends and consequences of terrorist activities are often captured by counting the number of incidents and casualties. More recently, the effects of terrorist acts on various aspects of the economy have been analyzed. These costs are surveyed and put in perspective. As economic consequences are only a part of the overall costs of terrorism, possible approaches for estimating the...