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Daniel F. Garrett, George Georgiadis, Alex Smolin et Balazs Szentes
vol. 209, n° 105621, avril 2023
This paper considers a moral hazard model with agent limited liability. Prior to interacting with the principal, the agent designs the production technology, which is a specification of his cost of generating each output distribution. After observing the production technology, the principal offers...
James K. Hammitt
n° 23-1431, avril 2023
The monetary value of a reduction in mortality risk can be accurately characterized using the alternative concepts of value per statistical life (VSL), value per statistical life year (VSLY), and value per quality-adjusted life year (VQALY). Typically, each of these values depends on the age and...
Jeffrey A. Friedman
vol. 75, n° 2, avril 2023, p. 280–315
This article explains how leaders can use foreign policy issues to shape their personal images. It argues, in particular, that presidents and presidential candidates can use hawkish foreign policies to craft valuable impressions of leadership strength. This dynamic can give leaders incentives to...
Jorge Peña et Georg Nöldeke
n° 23-153, avril 2023
The prisoners’ dilemma, the snowdrift game, and the stag hunt are simple two-player games that are often considered as prototypical examples of cooperative dilemmas across disciplines. However, surprisingly little consensus exists about the precise mathematical meaning of the words “cooperation”...
Olivier Armantier, Jérôme Foncel et Nicolas Treich
n° 23-1425, avril 2023
We study insurance and portfolio decisions, two opposite risk retention tradeoffs. Using household level data, we identify the first joint determinants (e.g. subjective expecta-tions, risk attitude) and frictions (e.g. liquidity constraints, financial literacy) in the literature. We also find key...
Georges Vivien Houngbonon, Marc Ivaldi, Emil Palikot et Davide Strusani
n° 23-1427, avril 2023, révision août 2025
Nearly half the world remains offline, and capital scarcity stalls new network buildouts. Sharing existing mobile towers could accelerate connectivity. We assemble data on 107 towersharing deals in 28 low-income countries (2008–20) and estimate staggered difference-in-differences effects. Two years...
Estelle Malavolti et Augustin Lesgourgues
vol. 170, n° 103613, avril 2023
We develop a schedule delay model using advanced econometrics techniques, while computing the social cost of passenger delays, in order to propose an alternative to the method of defining such cost that is actually found in the literature. This study has been made possible by obtaining private...
Francesca Barigozzi, Helmuth Cremer et Emmanuel Thibault
n° 23-1426, avril 2023
We present a simple dynamic model based on on-the-job human capital accumu- lation affecting the dynamic of wage rates and labor earnings. We show how these dynamics are determined by the interplay between the supply and demand sides of the labor market. The model can generate and explain the...
Daniel F. Garrett et Elena Panova
n° 23-1429, avril 2023, révision août 2025
Large-scale infrastructure investments are often carried out in settings where their eventual usefulness or importance is diffcult to predict. This paper studies optimal incentives for investment when the agent undertaking the investment has superior information on two dimensions: the cost of...
Bruno Biais, Christophe Bisière, Matthieu Bouvard, Catherine Casamatta et Albert J. Menkveld
vol. 78, n° 2, avril 2023, p. 967–1014
We offer an overlapping generations equilibrium model of cryptocurrency pricing and confront it to new data on bitcoin transactional benefits and costs. The model emphasizes that the fundamental value of the cryptocurrency is the stream of net transactional benefits it will provide, which depend on...
