We quantify patient-regarding preferences by fitting a bounded rationality model to data from an incentivized laboratory experiment, where Chinese medical doctors, German medical students and Chinese medical students decide under different payment schemes. We find a remarkable stability in patient-regarding preferences when comparing subject pools and we cannot reject the hypothesis of equal patient-regarding preferences in the three groups. The results suggest that a health economic experiment can provide knowledge that reach beyond the student subject pool, and that the preferences of decision-makers in one cultural context can be of relevance in a very different cultural context.
This is the first paper that evaluates the effects of a reform requiring Russian universities to make admission decisions based on the results of a national high-school exam. We show the reform led to a threefold increase in geographic mobility rates among high-school graduates from small cities and towns to start college. This is robust to different techniques, samples, and specifications. The reform was also accompanied by increases in students’ expectations to attend university, parental transfers, and educational expenditures. There is no evidence the reform affected parental labor supply, divorce, and employment outcomes of graduates who did not move.
We examine 597 estimates of habit formation reported in 81 published studies. The mean reported strength of habit formation equals 0.4, but the estimates vary widely both within and across studies. We use Bayesian and frequentist model averaging to assign a pattern to this variance while taking into account model uncertainty. Studies employing macro data report consistently larger estimates than micro studies: 0.6 vs. 0.1 on average. The difference remains 0.5 when we control for 30 factors that reflect the context in which researchers obtain their estimates, such as data frequency, geographical coverage, variable definition, estimation approach, and publication characteristics. We also find that evidence for habits strengthens when researchers use lower data frequencies, employ log-linear approximation of the Euler equation, and utilize open-economy DSGE models. Moreover, estimates of habits differ systematically across countries.
The organization of collective action is extremely important for societies. A main reason is that many of the key problems societies face are public good problems. We present results from a series of laboratory experiments with large groups of up to 100 subjects. Our results demonstrate that large groups, in which the impact of an individual contribution ( MPCR ) is almost negligible, are able to provide a public good in the same way as small groups in which the impact of an individual contribution is much higher. Nevertheless, we find that small variations in MPCR in large groups have a strong effect on contributions. We develop a hypothesis concerning the interplay between MPCR and group size, which is based on the assumption that the salience of the advantages of mutual cooperation plays a decisive role. This hypothesis is successfully tested in a second series of experiments. Since Mancur Olson’s “Logic of collective action” it is a commonly held belief that in large groups the prospects of a successful organization of collective actions are rather bad. Our results, however, suggest that the chance to successfully organize collective action of large groups and to solve important public good problems is much higher than previously thought.
This study analyzes the conditions for the commercialization of public technologies transferred to the private sector and the subsequent effect on business growth. We focus on the commercial exploitation of technologies transferred by universities and public research institutes (U&PRIs) to companies. The empirical analysis uses detailed information regarding an extensive set of actual instances of public-private technology transfer in Korea (514 cases of technologies transferred by 43 major U&PRIs) to highlight the role of company absorptive capacity and internal innovation capabilities, cooperation with U&PRIs, and the intensity of market competition in determining commercialization success and business growth. We find that the intensity of market competition significantly influenced the paths along which absorptive capacity and internal innovation capacity affected successful commercialization, and successful commercialization in turn affected business growth. Effective partnership is a key factor of the successful commercialization of transferred technologies irrespective of market situations. Absorptive capacity contributes to their short-term success and long-term growth when market competition is strong.
This article analyzes the effect of the opportunities abroad on the growth path that a small open economy, in which redistribution policy in favor of less prosperous segments takes place, is expected to follow. The model shows that redistribution policy raises fertility among the unskilled recipients, lowers fertility among the contributing skilled, slows human capital accumulation, and reduces per-capita output growth. The paper demonstrates that the opportunities abroad determine the share of income redistributed and ultimately induce the offspring of the unskilled to invest in human capital and decrease their family size.
In this paper, we incorporate trade in tasks into Marin and Verdier (2012) to examine how offshoring affects the way firms organize. We show that offshoring of production tasks and of managerial tasks can lead to more decentralized management and to larger executive wages in open economies. We study the predictions of the model with original firm level data and find that offshoring firms are 18% more decentralized than non-offshoring firms. We also find that offshoring of managers increases the level of decentralized management in open industries, but reduces the level of decentralized management in sufficiently closed industries.
This paper provides evidence for retrospective voting in the very long-term by exploiting a unique quasi-natural experiment of history. We trace the origins of party identification to a critical juncture in the local history of Sasun, a mountainous region of the Ottoman Empire located in Eastern Turkey. Sasun received vital support from the Armenian Revolutionary Federation (ARF) both during the Great Massacres against Armenians at the end of the 19th century and during the Armenian Genocide (1915–1917). With the help of the ARF, some of the survivors from Sasun were resettled in various villages in modern-day Armenia. Although the party was not active in Armenia during seven decades of Soviet rule, we find that villages with Sasun ancestry display substantially higher electoral support for the ARF than other villages. Evidence from first names of current residents and our field work suggest that this differential support can, at least in part, be explained by historical gratitude and sympathy for the party. We offer suggestive evidence to explain why this sympathy might have endured over generations.