Behavioral Economics Commons^™

Competition-Based Environmental Policy: An Analysis Of Farmland Preservation In Maryland, John K. Horowitz, Lori Lynch, Andrew J. Stocking

Andrew J Stocking

Policy makers have turned to competition-based voluntary-enrollment programs as a cost-effective way to achieve preferred land uses. This paper studies bidder behavior in an innovative auction-based program in which farmers compete to sell and retire the right to develop their land. We derive a reduced-form bidding model that includes private and common values. This model allows us to estimate the role of bidder competition, winner’s curse correction, and the underlying distribution of private values. We estimate that the auction enrolled as many as 3,000 acres (12%) more than a take-it-or-leave-it offer would have enrolled for the same budgetary cost.

On Some Covariance Inequalities For Monotonic And Non-Monotonic Functions, Martin Egozcue, Luis Fuentes García, Wing Keung Wong

Martin Egozcue

No abstract provided.

A Nation In Dilemma, Professor Issam A.W. Mohamed

Professor Issam A.W. Mohamed

following the Global financial Crisis there were economic collapses in all the world. Sudan officials claimed that the country was immune from that epidemic. Such declaration were truly weird as it has been deeply affected from the first instant. That article presented many questions about the economic and social conditions and the eminent southern Sudan, Darfur crises.

There Should Be Little Or No Liquidity Discounts For Controlling Interests In Closely Held Businesses, Michael Sack Elmaleh

Michael Sack Elmaleh

The application of liquidity discounts to the appraised values of controlling interests in closely held businesses reflects a failure of the valuation community to fully appreciate the fact that these equity interests belong to a fundamentally different investment class than publicly traded securities. Investors in publicly traded securities have dramatically different expectations about the benefits and sacrifices of such investments, compared to the expectations of benefits and sacrifices of investors in closely held companies. Investors in publicly traded securities expect their minority interest investments to be highly liquid, yield free cash flow, and require no participation in the management of …

Financial Regulation And Securitization: Evidence From Subprime Mortgage Loans, Benjamin J. Keys, Tanmoy K. Mukherjee, Amit Seru, Vikrant Vig

Benjamin J. Keys

We examine the consequences of existing regulations on the quality of mortgage loans originations in the originate to distribute (OTD) market. The information asymmetries in the OTD market can lead to moral hazard problems on the part of lenders. We find, using a plausibly exogenous source of variation in the ease of securitization, that the quality of loan originations varies inversely with the amount of regulation: more regulated lenders originate loans of worse quality. We interpret this result as possible evidence that the fragility of lightly regulated originators' capital structure can mitigate moral hazard. In addition, we find that incentives …

The Janjaweed And The Armed Movements Of Sudan, Professor Issam A.W. Mohamed

Professor Issam A.W. Mohamed

The emergence of the Janjaweed as an armed force working with the government to suppress rebellions in Darfur region outraged the international community. They were marked by brutality, destruction, burning, killings and mass rapes. They were also described as Arabs. However, that was not the whole picture, no one observed the living conditions of the Arabs or how were they victims also as the other inhabitants of Darfur. No one also observed that they were used by the Ingaz government to execute the dirty work and bear the consequences. The Arab tribes however, also had other thoughts as they realized …

Incorporating Fairness Motives Into The Impulse Balance Equilibrium And Quantal Response Equilibrium Concepts: An Application To 2x2 Games, Alessandro Tavoni

Alessandro Tavoni

Substantial evidence has accumulated in recent empirical works on the limited ability of the Nash equilibrium to rationalize observed behavior in many classes of games played by experimental subjects. This realization has led to several attempts aimed at finding tractable equilibrium concepts which perform better empirically; one such example is the impulse balance equilibrium (Selten, Chmura, 2008), which introduces a psychological reference point to which players compare the available payoff allocations. This paper is concerned with advancing two new, empirically sound, concepts: equity-driven impulse balance equilibrium (EIBE) and equity-driven quantal response equilibrium (EQRE): both introduce a distributive reference point to …

Assessing The Viability Of Investment In Sudan (1979-2008), Professor Issam A.W. Mohamed

Professor Issam A.W. Mohamed

Most developing and underdeveloped countries beside Sudan suffer from low levels of income in addition to the low savings that are result from the lack of public savings channels. Hence, investments depend on the individuals' abilities on savings where they are major motivating vehicle for economic activity due to its direct correlation with capital accumulation process that increases the productive capacity for the national economy and help to create job opportunities and achieving economic development. Subsequently, the importance of the investment comes from the effective role that can be practiced on the national product. Currently, Sudan endures severe economic crisis …

Charitable Memberships, Volunteering, And Discounts: Evidence From A Large-Scale Online Field Experiment, Andreas Lange, Andrew J. Stocking

Andrew J Stocking

Despite the increasing use by charities, significant uncertainty exists about optimal online fundraising mechanisms, especially when large donor pools show substantial heterogeneities. We use an online natural field experiment with over 700,000 subjects to test theory on price discounts and show large differences in donation behavior between donors who have previously given money and/or volunteered. For example, framing the charity’s membership price as a discount increases response rates and decreases conditional contributions from former volunteers, but not from past money donors. Our study thereby demonstrates the importance of conditioning fundraising strategies on the specifics of past donation dimensions.

Rogue Counrty And Potential Cooperation: The United States And Sudan And Feasible Economic Partnership, Professor Issam A.W. Mohamed

Professor Issam A.W. Mohamed

The United States declared Sudan as a rogue country in 1995 due to many political considerations. It has imposed many economic and political sanctions against it since that time which represented hindrance to development and resulted in economic crises. Oil explorations started long time by Total Oil Company and resumed by Chevron that halted her activities in Sudan after the flaring of the civil war between the Northern and Southern parts of the country. That work was resumed in 1996 by Chinese companies and was crowned by success and commercial production in 1999. Although the economic situations of Sudan improved …

Who Cries For Sudan: من الذي يرثي السودان, Professor Issam A.W. Mohamed

Professor Issam A.W. Mohamed

The institutional collapse in Sudan started long time ago. However, it has accelerator in the past years since Nivasha Comprehensive Peace Agreement and Darfur war.

A Two-Sided Auction For Legacy Loans, Peter Cramton

Peter Cramton

On Monday, 23 March 2009, Treasury Secretary Geithner presented the Public-Private Investment Program as a key instrument to resolve the financial crisis (www.financialstability.gov). The Treasury’s description still leaves many issues unanswered. We flesh out the auction design for legacy loans. A two-sided auction is required. Both banks and private investors must compete in a transparent and competitive process.

Bringing Growth Theory Down To Earth, Andrew J. Stocking, Ramon Lopez

Andrew J Stocking

Explicitly accounting for certain basic physical laws governing the “earth” sector dramatically enriches our ability to explain a high degree of diversity in observed patterns of economic growth. We provide a theoretical explanation of why some countries have been able to sustain a more or less constant and positive rate of economic growth for many decades while so many others have failed to do so. The analysis predicts that countries that have an over abundance of physical capital (a concept that is precisely defined in the text) may be unable to sustain a positive rate of economic growth over the …

Enabling Environments For Social Enterprise Development. Analytical Framework And International Exploratory Study Of Good Practices, Raf Peels, Caroline Gijselinckx, Wim Van Opstal, Li Zhao

Wim Van Opstal

The ILO Social Enterprise Development Targeting Unemployed Youth in South Africa (SETYSA) project seeks to promote social enterprise development in South Africa by supporting progress towards a conducive enabling environment and the development of appropriate business development service (BDS) products for potential social entrepreneurs, with a particular focus on young entrepreneurs. The ultimate objective of the project is to encourage the creation of employment opportunities within social enterprises, as well as the social value delivered by the goods and services they produce.

This report presents a selection of policy measures that governments worldwide are taking to create a supportive environment …

Een Monitor Voor De Sociale Inschakelingseconomie In Vlaanderen. Methodologierapport., Eva Deraedt, Wim Van Opstal

Wim Van Opstal

Dit rapport beschrijft de gehanteerde methodologie bij het opstellen van een monitoringinstrument dat ontwikkeld werd om de sociale inschakelingseconomie in Vlaanderen in kaart te brengen (Deraedt & Van Opstal, 2009). De ontwikkeling van dit instrument vond plaats aan het HIVA (K.U.Leuven), kadert in de onderzoekswerkzaamheden van het Steunpunt Werk en Sociale Economie en werd uitgevoerd in opdracht van de Vlaamse administratie. De opdracht bestond erin bestaande databanken maximaal te valoriseren om zo het veelkleurige pallet van de sociale inschakelingseconomie in kaart te brengen. Het uiteindelijke resultaat levert ons de nodige indicatoren op om een profielschets te kunnen maken van de …

Een Monitor Voor De Sociale Inschakelingseconomie In Vlaanderen. Resultatenrapport., Eva Deraedt, Wim Van Opstal

Wim Van Opstal

Dit rapport toont de resultaten van een monitoring- instrument dat ontwikkeld werd om de sociale inschakelingseconomie in Vlaanderen in kaart te brengen. De ontwikkeling van dit instrument vond plaats aan het HIVA (K.U.Leuven), kadert in de onderzoekswerkzaamheden van het Steunpunt Werk en Sociale Economie en werd uitgevoerd in opdracht van de Vlaamse administratie. De opdracht bestond erin bestaande databanken maximaal te valoriseren om zo het veelkleurige pallet van de sociale inschakelingseconomie in kaart te brengen.

Het uiteindelijke resultaat levert ons de nodige indicatoren op om een profielschets te kunnen maken van de ondernemingen die actief zijn in de sociale inschakelingseconomie, …

La Economía Que Devuelve España A Los Españoles, Mario Šilar

Mario Šilar

No abstract provided.

The Irreduceable Moral Nature Of Human Action, Mario Šilar, José María Torralba

Mario Šilar

No abstract provided.

John Langshaw Austin: Evolution, Communication And Language Daily (John Langshaw Austin: Evolución, Comunicación Y Lenguaje Cotidiano) Spanish, Fernando Estrada

Fernando Estrada

In this paper the main purpose is to expose the relevance of focus of John L. Austin and their opposition a conception type on the communication. Austin elaborates - in its own terms - to “linguistic phenomenology,” with which revises some places thrashed critically. Those “you force illocutionary” and those “speech acts,” they will be central concepts in this analytic company. In the perspective of Austin should not make a mistake communication with information. The work that here develop it proposes some usually notices in defense of the normative functions of the language ordinary.

Labyrinth Of Modernity, Interpretation Of The Old Regime And The Revolution Of Alexis De Tocqueville (Laberinto De La Modernidad. Interpretación Del Antiguo Régimen Y La Revolución De Alexis De Tocqueville) Spanish, Fernando Estrada, José Daniel Parra

Fernando Estrada

CIPE in this book presents an interpretation of the Old Regime and the Revolution of Alexis de Tocqueville.

Meditations On Machiavelli (Meditaciones En Maquiavelo) Spanish, Fernando Estrada, José Daniel Parra

Fernando Estrada

The presentation of Machiavelli in the field of studies of Finance, Government and International Relations is twofold. First, show that we can better understand the problems of our time in the footsteps comprehensive than classical authors have left us. A student can recognize progressive power that were taking concepts such as politics, power, status, conflict, political parties, institutions, representation and social movements, from writing original authors as Florentine thinker.

How Best To Auction Natural Resources, Peter Cramton

Peter Cramton

I study the design of auctions of natural resources, such as oil or mineral rights. A good auction design promotes both an efficient assignment of rights and competitive revenues for the seller. The structure of bidder preferences and the degree of competition are key factors in determining the best design. With weak competition and additive values, a simultaneous first-price sealed-bid auction may suffice. With more complex value structures, a dynamic auction with package bids, such as the clock-proxy auction, likely is needed to promote the efficiency and revenue objectives. Bidding on production shares, rather than bonuses, typically increases government take …

Auctioning The Digital Dividend, Peter Cramton

Peter Cramton

I begin by describing some of the problems of the simultaneous ascending auction. Then I present the package clock auction, which retains the benefits, while addressing the weaknesses, of the simultaneous ascending auction. I emphasize two essential elements of the package clock auction: the pricing rule and the activity rule. Along the way, I summarize both experimental and field results with the package clock auction.