infonet-economy

"Economists long considered money illusion to be largelynirrelevant. Here we show, however, that money illusion has powerfulneffects on equilibrium selection. If we represent payoffs in nominal terms,nchoices converge to the Pareto inefficient equilibrium; however, if we liftnthe veil of money by representing payoffs in real terms, the Pareto efficientnequilibrium is selected....

Innovation has become a key element of the economic growth of highly developed countries. Moreover, it is an undisputed fact that Switzerland needs to strengthen its efforts at innovation. This has become clear, among
other things in the message of the Federal Council, the Swiss government, which emphasises the promotion of education, research and technology for the years 2004...

A comparison of Japan’s and Switzerland’s immigration policies disclaims both globalist and public choice explanations that would predict a similar increase in immigrant numbers and an expansion of immigrant rights in liberal democracies. Although both countries have traditionally espoused a rather exclusionary approach towards immigration, Japan is unique in having hitherto...

"We examine the characteristics and the relative strength of third party sanctions inna series of experiments. We hypothesize that egalitarian distribution norms and cooperationnnorms apply in our experiments, and that third parties, whose economic payoff is unaffectednby the norm violation, may be willing to enforce these norms although the enforcement isncostly for them....

We construct a tractable model of divisible money and equilibrium heterogeneity in money balances and prices. We do so by considering randomized monetary trades in a standard search-theoretic model of money where agents can hold multiple units of indivisible 'tokens'. By studying a simple trading pattern, we can generate monetary distributions that match those observed in...

In a recent paper Engelmann and Strobl claim that a combination of a preference for efficiency and a Rawlsian motive for helping the least well-off is far more important than inequity aversion. Here we show that the relevance of the efficiency motive is largely restricted to students of economics and business administration. Students from other disciplines, adult academics from...