Publikationssuche

Lumpy Investment in Regulated Natural Gas Pipelines: An Application of the Theory of the Second Best

We address investment in regulated natural gas pipelines when investment is lumpy and the demand for gas is stochastic. This is a problem that can be solved in theory as a dynamic program, but a practical solution depends on functions and parameters that are either subjective or cannot be estimated. We then reformulate the problem from the standpoint of consumers that face incomplete markets. It is ...

Does War Influence Individual Expectations?

We analyse the effect of mass violent conflict on individual expectations in Northern Uganda. We find that the expectations of the future economic situation are negatively affected by recent conflict while the effect on broadly defined welfare is less robust.

Long-Term Antecedents and Outcomes of Perceived Control

Perceived control plays an important role in shaping development throughout adulthood and old age. Using data from the adult lifespan sample of the national German Socio-Economic Panel (SOEP; N > 10,000, covering 25 years of measurement), we explored long-term antecedents, correlates, and outcomes of perceived control and examined if associations differ with age. Targeting correlates and antecedents ...

Strict Nash Networks and Partner Heterogeneity

This paper extends the two-way flow model of network formation initiated by Bala and Goyal (Econometrica 68(5):1181-1230, 2000) by allowing for partner heterogeneity.In our model if a player i forms a link with player j, then she pays a cost of c j and gets benefits of V j . Our main result consists of the characterization of strict Nash networks. We find that the introduction of partner heterogeneity ...

Individual Risk Attitudes: Measurement, Determinants, and Behavioral Consequences

This paper studies risk attitudes using a large representative survey and a complementary experiment conducted with a representative subject pool in subjects' homes. Using a question asking people about their willingness to take risks -in general -, we find that gender, age, height, and parental background have an economically significant impact on willingness to take risks. The experiment confirms ...

Parental Unemployment and Young People's Extreme Right-Wing Party Affinity: Evidence from Panel Data

The paper investigates the extent to which parental unemployment affects young people's far right-wing party affinity. Cross-sectional estimates from the German Socio-Economic Panel show a positive relationship between growing up with unemployed parents and support for the extreme right. The paper uses differences in parental unemployment experience during childhood across siblings to investigate a ...

How Do Tourists React to Political Violence? An Empirical Analysis of Tourism in Egypt

This paper uses a detailed database of political violence in Egypt to study European and US tourists' attitudes towards a conflict region. We study the heterogeneous impacts of different dimensions of political violence and counter-violence on tourist flows to Egypt in the 1990s. Both US and EU tourists respond negatively to attacks on tourists, but are not influenced by casualties arising in confrontations ...

Security as a Public, Private or Club Good: Some Fundamental Considerations

Security is often defined as the absence of threats. However, security has far more aspects, reaching from security of nation states to health security. Baldwin (1997) formulated seven questions to narrow the (broad) concept of security. Along with Baldwin's questions, this paper analyses 'security' in the context of private, public, and club goods and their changing mixture. On the individual level, ...

The Economics of Terrorism from a Policy-Maker's Perspective

This paper introduces a brief framework on the political decision-making process in the context of terrorism. I relate the trade-offs policy-makers are faced with to the economic terrorism literature. Past years have shown a steady increase in theoretical and empirical contributions. However, the major part of the empirical advances is on the economic effects of terrorism, its origins, and drivers. ...

The Economics of Security: A European Perspective ; Introduction