Economic Theory Commons^™

Pre-Visit Perceived Images:The Importance Of Tourism Communication In Thedigital Age, Febrian Febrian

Jurnal Administrasi Bisnis Terapan

This paper examines tourism communication that shows the importance of information on a destination in various platforms and also the role of forming a pre-visit image that is built in the minds of potential visitors. Promotional strategies can also reflect on the pre-visit perceived image as the main thing in seeing a destination. The development of media and platforms used to access pre-visit information apart from being a promotional media is also important to be seen as an initial filter for potential visitors before determining which destination they interested in

Sengketa Terkait Pengenaan Pajak Pertambahan Nilaiatas Penjualan Liquefied Petroleum Gas(Lpg) Tabung 3 Kilogram Subsidi Pemerintah(Studi Kasus Pt Pbl Tahun 2017), Hadining Kusumastuti, Yessi Simamora

Jurnal Administrasi Bisnis Terapan

This Research discusses the Dispute Regarding the Imposition of Value Added Tax on the Sale of Liquefied Petroleum Gas 3 Kilograms of Government Subsidy based on a case study of PT PBL. The purpose of writing this research is to find out the background of the tax authorities imposing VAT on the delivery of LPG 3 kilograms of government subsidies carried out by PT PBL and to find out how the process of resolving disputes between PT PBL and the tax authorities over these problems. The results of this paper state that the cause of the dispute is the imposition …

Efektivitas Implementasi Restrukturisasi Pembiayaan Akibatpandemi Covid-19 Terhadap Penurunan Npf Pada Pt Bank Dki Unitusaha Syariah, Wahyu Nofiantoro, Nabiila Washfaa Alfathiin Purnawan Putri

Jurnal Administrasi Bisnis Terapan

The COVID-19 pandemic has had an impact on almost all fields in the world, one of the sectors that has a significant impact is the economic sector. The COVID-19 pandemic has caused the number of people's income to decrease. The government, especially the Financial Services Authority, enforces regulations that have been issued in accordance with POJK Number 11/POJK.03/2020 concerning National Economic Stimulus as a Countercyclical Policy for the Impact of the Spread of the 2019 Coronavirus Disease, which is updated through POJK Number 48/POJK.03/2020. The implementation of the POJK is due to avoid the problem of losses that are much …

Klaim Dispute Berkas Pasien Rawat Inap Covid-19 Dirumah Sakit Hermina Depok, Nur Fadilah Dewi, Ayu Puspita Nurdaliani

Jurnal Administrasi Bisnis Terapan

The process of submitting a claim for a COVID-19 patient file that has been sent is verified by BPJS Kesehatan to ensure the suitability of the diagnosis and procedure on the bill with the ICD-10 and ICD-9 CM codes. Lack of files or data on claim submissions found after the verification process may occur. This is due to differences in diagnosis or dispute. This study aims to determine the proportion of suitability of COVID-19 inpatient claim files. The quantitative descriptive research methodology uses secondary data from reports on the results of the verification of claim files for COVID-19 inpatients for …

Keeping A Clean Reputation: More Evidence On The Perverse Effects Of Disclosure, Cary Deck, J. Dustin Tracy

ESI Working Papers

When a principal relies on an agent, a conflict of interest can encourage the agent to provide biased advice. Conventional wisdom suggests that such behavior can be reduced through disclosure requirements. However, disclosure has been shown to exacerbate self-serving bias and can actually lead to greater harm for the principal in one-shot interactions. But in many naturally occurring settings, agents form reputations, a mechanism that could diminish the incentive to provide biased advice. We test for bias in the advice agents provide when faced with reputation concerns, and examine the impact of disclosure in such an environment. In controlled laboratory …

The Economic Impact Of Lockdowns: A Theoretical Assessment, Gabriele Camera, Alessandro Gioffré

ESI Working Papers

The sudden appearance of the SARS-CoV-2 virus and the onset of the COVID-19 pandemic triggered extreme and open-ended “lockdowns” to manage the disease. Should these drastic interventions be the blueprint for future epidemics? We construct an analytical framework, based on the theory of random matching, which makes explicit how epidemics spread through economic activity. Imposing lockdowns by assumption prevents contagion and reduces healthcare costs, but also disrupts income-generation processes. We characterize how lockdowns impact the contagion process and social welfare. Numerical analysis suggests that protracted, open-ended lockdowns are generally suboptimal, bringing into question the policy responses seen in many countries.

The Politics Of Medicine: Power, Actors, And Ideas In The Making Of Health, Claire Wulf Winiarek

Graduate Program in International Studies Theses & Dissertations

The practice of medicine has become the prescribing of medicine. Reflecting a construct of health defined by Rationalism, individualism, and biomedical science, medicines (pharmaceuticals) are politically constructed to be the first – and sometimes only prescribed – line of defense against illness and disease. Pharmaceuticals also represent a highly desirable, ‘recession-proof’ component of many Nation-states’ (states’) export strategies, helping advanced economies, in particular, to maintain favorable trade balances and economic growth amidst the headwinds of deindustrialization.

Higher use and the overreliance on pharmaceuticals promote an outsized role for certain actors and ideas in the making of global health, referring to …

Essays On Spatial Econometrics Application In Study Of Conflict And Economic Activity, Ahmed Sadek Yousuf

Graduate Theses and Dissertations

Spatial interaction and the locational structure between observations as well as availability of satellite derived data has meant a richer and more exhaustive exploration of topics relevant in development topics, particularly in areas of subnational economic activity and conflict. This research leverages thus spatial econometric techniques to dynamically decompose impacts from socio-economic determinants on conflict incidence (with setting in Sub-Saharan Africa). Later I also present a statistical framework (based on extension of Henderson’s approach (2012)) to augment official income figures at district / county level with multiple satellite derived signals, with specific context given to developing countries.

In the first …

Are Simple Mechanisms Optimal When Agents Are Unsophisticated?, Jiangtao Li, Piotr Dworczak

Research Collection School Of Economics

We study the design of mechanisms involving agents that have limited strategic sophistication. The literature has identified several notions of simple mechanisms in which agents can determine their optimal strategy even if they lack cognitive skills such as predicting other agents' strategies (strategy-proof mechanisms), contingent reasoning (obviously strategy-proof mechanisms), or foresight (strongly obviously strategy-proof mechanisms). We examine whether it is optimal for the mechanism designer who faces strategically unsophisticated agents to offer a mechanism from the corresponding class of simple mechanisms. We show that when the designer uses a mechanism that is not simple, while she loses the ability to …

Government Support For Smes In Response To Covid-19: Theoretical Model Using Wang Transform, Shaun Shuxun Wang, Jing Rong Goh, Didier Sornette, He Wang, Esther Yang

Research Collection School Of Economics

Purpose: Many governments are taking measures in support of small and medium-sized enterprises (SMEs) to mitigate the economic impact of the COVID-19 outbreak. This paper presents a theoretical model for evaluating various government measures, including insurance for bank loans, interest rate subsidy, bridge loans and relief of tax burdens. Design/methodology/approach: This paper distinguishes a firm's intrinsic value and book value, where a firm can lose its intrinsic value when it encounters cash-flow crunch. Wang transform is applied to (1) calculating the appropriate level of interest rate subsidy payable to incentivize banks to issue more loans to SMEs and to extend …

Choice Overload, Information Acquisition, And Gift Incentives In An Altruistic Context: Economic Experiments Exploring Decision Making In Charitable Giving, Jessica Adach White

Graduate Theses and Dissertations

This dissertation contains three essays on economic experiments concerning altruistic motives. The first chapter, “Choice Overload and Charitable Giving: Can There Be Too Much of a Good Thing?” concentrates on the effects of list sizes of charitable options on an individual’s decision making. The second chapter, “Is No News Good News? Motivated Reasoning in Charitable Giving,” focuses on the impact of information acquisition on an individual’s altruistic contributions. Finally, the third chapter, “Thank You, but No Thank You: Gift Incentives in Charitable Giving,” investigates gift incentives and their influence on donating behavior.

In the first chapter, “Choice Overload and Charitable …

Making It Public: The Effect Of (Private And Public) Wage Proposals On Efficiency And Income Distribution, Lara Ezquerra, Joaquín Gómez-Miñambres, Natalia Jiminez, Praveen Kujal

ESI Working Papers

The implications of (public or private) pre-play communication and information revelation in a labour relationship is not well understood. We address these implications theoretically and experimentally. In our baseline experiments, the employer offers a wage to the worker who may then accept or reject it. In the public and private treatment, workers, moving first, make a non-binding private or public wage proposal. Our theoretical model assumes that wage proposals convey information about a worker’s minimum acceptable wage and are misreported with a certain probability. It predicts that, on average, wage proposals lead to higher wage offers and acceptance rates, with …

An Experimental Study Of Within- And Cross-Cultural Cooperation: Chinese And American Play In The Prisoner’S Dilemma Game, Michael Kuroda, Jieran Li, Jason Shachat, Lijia Wei, Bochen Zhu

ESI Working Papers

We study whether cross- and within-culture groups have different cooperation rates in the Prisoner’s Dilemma Game. In an experiment, university students in China and America engage in a single iteration of the game, complete belief elicitation tasks regarding their opponents’ play and take a survey including attitudinal measurements regarding their in- and out-group attitudes. Cooperation rates are higher across the two countries are higher in both cross-culture and in within-culture interactions, although not significantly. We also find that Chinese participants cooperate less than American ones. Further, female Chinese participants are more cooperative than Chinese male ones. In the cross-culture treatment, …

One-Way Routes Complicate Cooperation In Migrant Crises, Alessandro Del Ponte, Peter Discioli, Aidas Masiliunas, Noah Lim

Political Science Faculty Articles and Research

How can countries cooperate to shelter migrants? We use experimental economics to study the distinct challenges of cooperation in migrant crises. We designed an economic game, pass the buck, where participants are leaders of countries who decide whether to shelter migrants or pass them to the next country. We examine the difficulties posed by one‑way migration and differences in wealth. We find that leaders sheltered migrants less often when they received them first on a one‑way route, compared to when everyone received migrants at the same time. Moreover, the first leader became more likely to shelter migrants when the last …

Economics Of Majoritarian Identity Politics, Rohit Ticku, Raghul S. Venkatesh

ESI Working Papers

Majoritarian identity politics has become salient in representative democracies. Why do parties engage in identity politics and what are its consequences? We present a model of electoral competition in which parties capture voter groups based on their identity, and compete over an economic policy platform for the support of non-partisan voters. In addition, the party that caters to majoritarian interests makes a costly investment in polarizing identity. The investment provides subsequent payoffs to voters who have a preference for identity. When voter preferences over policy platforms are idiosyncratic in nature, greater investment in polarizing identity (i) increases both parties’ rents …

Group-Identity And Long-Run Cooperation: An Experiment, Gabriele Camera, Lukas Hohl

ESI Working Papers

We stress-test the limits of the power of group identity in the context of cooperation by constructing laboratory economies where participants confront an indefinitely repeated social dilemma as strangers. Group identity is artificially induced by random assignment to color-coded groups, and reinforced by an initial cooperation task played in-group and in fixed pairs. Subsequently subjects interact in-group and out-group in large economies, as strangers. Indefinite repetition guarantees full cooperation is an equilibrium. Decision-makers can discriminate based on group affiliation, but cannot observe past behaviors. We find no evidence of group biases. This suggests that group effects are less likely to …

Competitive Information Disclosure In Random Search Markets, Wei He, Jiangtao Li

Research Collection School Of Economics

We analyze the role of competition in information provision in random search markets. Multiple symmetric senders compete for the receiver’s investment by disclosing information about their respective project qualities, and the receiver conducts random search to learn about the qualities of the projects. We show that in any symmetric Nash equilibrium, each sender chooses a strategy with the lowest possible reservation value. The receiver does not benefit from the competition of the senders, as the receiver’s expected payoff does not change when the number of senders increases.

Classical Theory Of Competitive Market Price Formation, Sabiou M. Inoua, Vernon L. Smith

ESI Working Papers

We offer an information theory of market price formation, formalizing and elaborating on an old, implicit, classical tradition of supply and demand based on buyers’ and sellers’ mone-tary valuations of commodities (formally their reservation prices) and competition as a multilat-eral higgling and bargaining process. The early laboratory market experiments, as it turns out with hindsight, established the remarkable stability, efficiency, and robustness of the old view of competitive price discovery, and not the neoclassical price theory (based on individual utility and profit maximization for given prices). Herein, we present a partial-equilibrium version of the the-ory in which wealth is implicitly …

The Happiness Study: Identifying Social And Economic That Make The U.S. Happier, Tatum Garrison

Undergraduate Honors Theses

As happiness is essential to overall well-being, understanding factors that affect it will inform policies designed to maximize people’s happiness within each state. This will have broad implications for economic research and policy. The wealth and general population income of a state determines an initial level of individual happiness. However, once a level of wealth is achieved, individual happiness does not increase proportionally. This paper examines the relationship of a state’s happiness, measured by computing a score based on an individual's health, wellbeing, and work environment, with economic factors such as GDP and median household income, and social factors including …

Do Wealth And Inequality Associate With Health In A Small-Scale Subsistence Society?, Adrian V. Jaeggi, Aaron D. Blackwell, Christopher Von Rueden, Benjamin C. Trumble, Jonathan Stieglitz, Angela R. Garcia, Thomas S. Kraft, Bret A. Beheim, Paul L. Hooper, Hillard Kaplan, Michael Gurven

ESI Publications

In high-income countries, one’s relative socio-economic position and economic inequality may affect health and well-being, arguably via psychosocial stress. We tested this in a small-scale subsistence society, the Tsimane, by associating relative household wealth (n = 871) and community-level wealth inequality (n = 40, Gini = 0.15–0.53) with a range of psychological variables, stressors, and health outcomes (depressive symptoms [n = 670], social conflicts [n = 401], non-social problems [n = 398], social support [n = 399], cortisol [n = 811], body mass index [n = 9,926], blood pressure [n = 3,195], self-rated health [n = 2523], morbidities [n = …

The Roaring Twenties After Covid-19: Revisiting The Evidence For Europe, Alessio Terzi

Journal of New Finance

Inspired by conspicuous historical parallels, some scholars and journalists have recently postulated that GDP growth and productivity might boom in the aftermath of the Covid-19 pandemic. This paper reviews the evidence for and against the ‘Roaring 20s’ hypothesis, concluding that some countries might experience a forceful economic expansion, possibly fuelled by pent-up demand, compounding a successful digital and green transition, or leveraging an export-led model. However, a strong prolonged economic bonanza is unlikely to materialise evenly across the EU. An uneven recovery would acquiesce imbalances within the Union, and especially the euro area. As such, policymakers should avoid complacency, and …

Investing In Our Future: A State-Level Analysis Of The Relationship Between Education Funding And Economic Growth, Corinna Campbell-Green

Graduate Theses and Dissertations

This research paper aims to investigate associations between education investments and economic growth on the state level. These relationships are measured in terms of two dependent variables: state gross domestic product output and cumulative personal incomes by state. These dependent variables, or indicators of economic growth were selected from previous supportive literature. The present study analyzes publicly available aggregate school finance data reports and aggregate GDP output reports for the year of 2018. Two hypotheses were tested to assess these associations. The results of the present study showed significant, positive associations for both tested hypotheses. This study further supports existing …

Economic Experiments On Conflict, Information Acquisition, And Public Goods, Jeffrey Braxton Gately

Graduate Theses and Dissertations

This dissertation contains essays on economic experiments. The first chapter, “Well, at Least I Tried: Partial Willful Ignorance, Information Acquisition, and Social Preferences,” focuses on the effects of information acquisition on social decision-making. The second chapter, “Paved With Good Intentions: Partial Willful Ignorance and Group Identity in Public Goods Games,” focuses on the effect of information acquisition on contributions to public goods. I also explore human conflict in the third chapter, “Risk Preferences and Reform Paths: Experimental Evidence.”

In my first chapter, “Well, at Least I Tried: Partial Willful Ignorance, Information Acquisition, and Social Preferences”, I investigate whether remaining partially …

Taxes And The Incentive To Work Under Flat And Progressive Tax Systems In Slovakia, Orkhan Nadirov, Bruce Dehning, Drahomira Pavelkova

Accounting Faculty Articles and Research

This study examines the impact of taxes on the incentive to work under flat and progressive tax systems. Of particular interest are the changes from progressive-to-flat and flat-to-progressive tax conditions. To measure the impact of taxes on the incentive to work under both scenarios, we relate hours worked with the effective marginal tax rates. Using national accounts data and the Prescott’s (2004) labor market model, Slovakian work hours were examined at points in time around the adoption of a flat tax system in 2004 and a progressive tax system in 2013. In Slovakia, there was a transition from a progressive …

Trustors’ Disregard For Trustees Deciding Intuitively Or Reflectively: Three Experiments On Time Constraints, Antonio Cabrales, Antonio M. Espín, Praveen Kujal, Stephen Rassenti

ESI Working Papers

Human decisions in the social domain are modulated by the interaction between intuitive and reflective processes. Requiring individuals to decide quickly or slowly triggers these processes and is thus likely to elicit different social behaviors. Meanwhile, time pressure has been associated with inefficiency in market settings and market regulation often requires individuals to delay their decisions via cooling-off periods. Yet, recent research suggests that people who make reflective decisions are met with distrust. If this extends to external time constraints, then forcing individuals to delay their decisions may be counterproductive in scenarios where trust considerations are important. In three Trust …

Standard Vs Random Dictator Games: On The Effects Of Role Uncertainty And Framing On Generosity, Ernesto Mesa-Vázquez, Ismael Rodriguez-Lara, Amparo Urbano

ESI Working Papers

We show that generosity is affected when we vary the level of role uncertainty, i.e., the probability that the dictator’s decision will be implemented. We also show that framing matters for generosity in that subjects are less generous when they are told that their choices will be implemented with a certain probability, compared with a setting in which they are told that their choices will not be implemented with certain probability.

Sunk Or Dunk?: An Empirical Analysis Of The Effect Of Sunk Cost Fallacy In Professional Basketball, Hailey Dicicco

Business and Economics Presentations

This project is divided into two sections. The first section is a comparison between the NBA and WNBA, using performance metrics from game statistics. I researched the history of women in sports and specifically read about how women first became integrated into the game of soccer. In the regression for section one, we used a few selected performance metrics and minutes in order to observe any relationships between specific skills and minutes. We also focused on the difference between the leagues in terms of what game stats are more or less significant.

In the second section of this paper, we …

Legalized Same-Sex Marriage And Coming Out In America: Evidence From Catholic Seminaries, Avner Seror, Rohit Ticku

ESI Working Papers

We study the effect of legalization of same-sex marriage on coming out in the United States. We overcome data limitations by inferring coming out decisions through a revealed preference mechanism. We exploit data on enrollment in seminary studies for the Catholic priesthood, hypothesizing that Catholic priests' vow of celibacy may lead gay men to self-select as a way to avoid a heterosexual lifestyle. Using a differences-in-differences design that exploits variation in the timing of legalization across states, we find that city-level enrollment in priestly studies fell by about 15% exclusively in states adopting the reform. The celibacy norm appears to …

Intentional Group Curation Of Information (Open Pedagogy Example), Dorina Tila

Open Educational Resources

This assignment aims at making instruction student-centered where students would participate in the curation of content. Students are asked to explain the various economic topics using the economic terminology and personal experience. For example, in this assignment, the students are split in groups and asked to discuss and identify what their opportunity cost of getting a college degree is. They will discuss all the items that comprise the opportunity cost and the benefits of going to college and share this in real time with everyone else through a google document.

Assignment Learning Outcomes:

• Define and apply the notion of opportunity …

Lessons Learned: Eric Dinallo, Maryann Haggerty

Journal of Financial Crises

Eric Dinallo was New York State Superintendent of Insurance from January 2007 through July 2009. In New York, as throughout the United States, insurance companies are regulated at the state level. In his position as Superintendent, Dinallo oversaw the insurance operating companies of American International Group (AIG) within New York. AIG’s holding company, however, was supervised at the federal level. Much of AIG’s problems came from its non-insurance subsidiary AIG Financial Products (AIGFP), which was a major presence in the market for credit default swaps (CDS), a type of derivative that was a factor behind the 2007-09 financial crisis. This …