@techreport{Andres2024, type = {Working Paper}, author = {Andres, Maximilian}, title = {Equilibrium selection in infinitely repeated games with communication}, series = {CEPA Discussion Papers}, journal = {CEPA Discussion Papers}, number = {75}, issn = {2628-653X}, doi = {10.25932/publishup-63180}, url = {http://nbn-resolving.de/urn:nbn:de:kobv:517-opus4-631800}, pages = {38}, year = {2024}, abstract = {The present paper proposes a novel approach for equilibrium selection in the infinitely repeated prisoner's dilemma where players can communicate before choosing their strategies. This approach yields a critical discount factor that makes different predictions for cooperation than the usually considered sub-game perfect or risk dominance critical discount factors. In laboratory experiments, we find that our factor is useful for predicting cooperation. For payoff changes where the usually considered factors and our factor make different predictions, the observed cooperation is consistent with the predictions based on our factor.}, language = {en} } @techreport{BruttelPetrishcheva2024, type = {Working Paper}, author = {Bruttel, Lisa Verena and Petrishcheva, Vasilisa}, title = {Does communication increase the precision of beliefs?}, series = {CEPA Discussion Papers}, journal = {CEPA Discussion Papers}, number = {74}, issn = {2628-653X}, doi = {10.25932/publishup-62936}, url = {http://nbn-resolving.de/urn:nbn:de:kobv:517-opus4-629367}, pages = {1 -- 33}, year = {2024}, abstract = {In this paper, we study one channel through which communication may facilitate cooperative behavior - belief precision. In a prisoner's dilemma experiment, we show that communication not only makes individuals more optimistic that their partner will cooperate but also increases the precision of this belief, thereby reducing strategic uncertainty. To disentangle the shift in mean beliefs from the increase in precision, we elicit beliefs and precision in a two-stage procedure and in three situations: without communication, before communication, and after communication. We find that the precision of beliefs increases during communication.}, language = {en} } @article{GohlSchrauth2024, author = {Gohl, Niklas and Schrauth, Philipp}, title = {JUE insight : ticket to paradise?}, series = {Journal of urban economics}, journal = {Journal of urban economics}, publisher = {Elsevier}, address = {Amsterdam}, issn = {0094-1190}, doi = {10.1016/j.jue.2024.103643}, year = {2024}, abstract = {This paper provides novel evidence on the impact of public transport subsidies on air pollution. We obtain causal estimates by leveraging a unique policy intervention in Germany that temporarily reduced nationwide prices for regional public transport to a monthly flat rate price of 9 Euros. Using DiD estimation strategies on air pollutant data, we show that this intervention causally reduced a benchmark air pollution index by more than eight percent and, after its termination, increased again. Our results illustrate that public transport subsidies - especially in the context of spatially constrained cities - offer a viable alternative for policymakers and city planers to improve air quality, which has been shown to crucially affect health outcomes.}, language = {en} } @techreport{BruttelEisenkopfNithammer2024, type = {Working Paper}, author = {Bruttel, Lisa Verena and Eisenkopf, Gerald and Nithammer, Juri}, title = {Pre-election communication in public good games with endogenous leaders}, series = {CEPA Discussion Papers}, journal = {CEPA Discussion Papers}, number = {73}, issn = {2628-653X}, doi = {10.25932/publishup-62395}, url = {http://nbn-resolving.de/urn:nbn:de:kobv:517-opus4-623952}, pages = {28}, year = {2024}, abstract = {Leadership plays an important role for the efficient and fair solution of social dilemmas but the effectiveness of a leader can vary substantially. Two main factors of leadership impact are the ability to induce high contributions by all group members and the (expected) fair use of power. Participants in our experiment decide about contributions to a public good. After all contributions are made, the leader can choose how much of the joint earnings to assign to herself; the remainder is distributed equally among the followers. Using machine learning techniques, we study whether the content of initial open statements by the group members predicts their behavior as a leader and whether groups are able to identify such clues and endogenously appoint a "good" leader to solve the dilemma. We find that leaders who promise fairness are more likely to behave fairly, and that followers appoint as leaders those who write more explicitly about fairness and efficiency. However, in their contribution decision, followers focus on the leader's first-move contribution and place less importance on the content of the leader's statements.}, language = {en} } @techreport{EstrinKhavulKritikosetal.2024, type = {Working Paper}, author = {Estrin, Saul and Khavul, Susanna and Kritikos, Alexander and L{\"o}her, Jonas}, title = {Access to digital finance}, series = {CEPA Discussion Papers}, journal = {CEPA Discussion Papers}, number = {72}, issn = {2628-653X}, doi = {10.25932/publishup-62326}, url = {http://nbn-resolving.de/urn:nbn:de:kobv:517-opus4-623261}, pages = {27}, year = {2024}, abstract = {Financing entrepreneurship spurs innovation and economic growth. Digital financial platforms that crowdfund equity for entrepreneurs have emerged globally, yet they remain poorly understood. We model equity crowdfunding in terms of the relationship between the number of investors and the amount of money raised per pitch. We examine heterogeneity in the average amount raised per pitch that is associated with differences across three countries and seven platforms. Using a novel dataset of successful fundraising on the most prominent platforms in the UK, Germany, and the USA, we find the underlying relationship between the number of investors and the amount of money raised for entrepreneurs is loglinear, with a coefficient less than one and concave to the origin. We identify significant variation in the average amount invested in each pitch across countries and platforms. Our findings have implications for market actors as well as regulators who set competitive frameworks.}, language = {en} } @techreport{AndresBruttel2024, type = {Working Paper}, author = {Andres, Maximilian and Bruttel, Lisa}, title = {Communicating Cartel Intentions}, series = {CEPA Discussion Papers}, journal = {CEPA Discussion Papers}, number = {77}, issn = {2628-653X}, doi = {10.25932/publishup-63846}, url = {http://nbn-resolving.de/urn:nbn:de:kobv:517-opus4-638469}, pages = {36}, year = {2024}, abstract = {While the economic harm of cartels is caused by their price-increasing effect, sanctioning by courts rather targets at the underlying process of firms reaching a price-fixing agreement. This paper provides experimental evidence on the question whether such sanctioning meets the economic target, i.e., whether evidence of a collusive meeting of the firms and of the content of their communication reliably predicts subsequent prices. We find that already the mere mutual agreement to meet predicts a strong increase in prices. Conversely, express distancing from communication completely nullifies its otherwise price-increasing effect. Using machine learning, we show that communication only increases prices if it is very explicit about how the cartel plans to behave.}, language = {en} } @techreport{BorckMulder2024, type = {Working Paper}, author = {Borck, Rainald and Mulder, Peter}, title = {Energy policies and pollution in two developing country cities}, series = {CEPA Discussion Papers}, journal = {CEPA Discussion Papers}, number = {78}, issn = {2628-653X}, doi = {10.25932/publishup-63847}, url = {http://nbn-resolving.de/urn:nbn:de:kobv:517-opus4-638472}, pages = {37}, year = {2024}, abstract = {We study the effect of energy and transport policies on pollution in two developing country cities. We use a quantitative equilibrium model with choice of housing, energy use, residential location, transport mode, and energy technology. Pollution comes from commuting and residential energy use. The model parameters are calibrated to replicate key variables for two developing country cities, Maputo, Mozambique, and Yogyakarta, Indonesia. In the counterfactual simulations, we study how various transport and energy policies affect equilibrium pollution. Policies may be induce rebound effects from increasing residential energy use or switching to high emission modes or locations. In general, these rebound effects tend to be largest for subsidies to public transport or modern residential energy technology.}, language = {en} } @article{CaliendoCobbClarkSilvaGoncalvesetal.2024, author = {Caliendo, Marco and Cobb-Clark, Deborah A. and Silva-Goncalves, Juliana and Uhlendorff, Arne}, title = {Locus of control and the preference for agency}, series = {European economic review}, volume = {165}, journal = {European economic review}, number = {104737}, publisher = {Elsevier}, address = {Amsterdam}, issn = {0014-2921}, doi = {10.1016/j.euroecorev.2024.104737}, pages = {24}, year = {2024}, abstract = {We conduct a laboratory experiment to study how locus of control operates through people's preferences and beliefs to influence their decisions. Using the principal-agent setting of the delegation game, we test four key channels that conceptually link locus of control to decision-making: (i) preference for agency, (ii) optimism and (iii) confidence regarding the return to effort, and (iv) illusion of control. Knowing the return and cost of stated effort, principals either retain or delegate the right to make an investment decision that generates payoffs for themselves and their agents. Extending the game to the context in which the return to stated effort is unknown allows us to explicitly study the relationship between locus of control and beliefs about the return to effort. We find that internal locus of control is linked to the preference for agency, an effect that is driven by women. We find no evidence that locus of control influences optimism and confidence about the return to stated effort, or that it operates through an illusion of control.}, language = {en} } @techreport{KritikosMalirantaNippalaetal.2024, type = {Working Paper}, author = {Kritikos, Alexander and Maliranta, Mika and Nippala, Veera and Nurmi, Satu}, title = {Does gender of firm ownership matter?}, series = {CEPA Discussion Papers}, journal = {CEPA Discussion Papers}, number = {76}, issn = {2628-653X}, doi = {10.25932/publishup-63619}, url = {http://nbn-resolving.de/urn:nbn:de:kobv:517-opus4-636194}, pages = {1 -- 39}, year = {2024}, abstract = {We examine how the gender of business-owners is related to the wages paid to female relative to male employees working in their firms. Using Finnish register data and employing firm fixed effects, we find that the gender pay gap is - starting from a gender pay gap of 11 to 12 percent - two to three percentage-points lower for hourly wages in female-owned firms than in male-owned firms. Results are robust to how the wage is measured, as well as to various further robustness checks. More importantly, we find substantial differences between industries. While, for instance, in the manufacturing sector, the gender of the owner plays no role for the gender pay gap, in several service sector industries, like ICT or business services, no or a negligible gender pay gap can be found, but only when firms are led by female business owners. Businesses in male ownership maintain a gender pay gap of around 10 percent also in the latter industries. With increasing firm size, the influence of the gender of the owner, however, fades. In large firms, it seems that others - firm managers - determine wages and no differences in the pay gap are observed between male- and female-owned firms.}, language = {en} } @article{DoebbelingHildebrandtMierschKhannaetal.2024, author = {D{\"o}bbeling-Hildebrandt, Niklas and Miersch, Klaas and Khanna, Tarun M. and Bachelet, Marion and Bruns, Stephan B. and Callaghan, Max and Edenhofer, Ottmar and Flachsland, Christian and Forster, Piers M. and Kalkuhl, Matthias and Koch, Nicolas and Lamb, William F. and Ohlendorf, Nils and Steckel, Jan Christoph and Minx, Jan C.}, title = {Systematic review and meta-analysis of ex-post evaluations on the effectiveness of carbon pricing}, series = {Nature communications}, volume = {15}, journal = {Nature communications}, number = {1}, publisher = {Springer Nature}, address = {London}, issn = {2041-1723}, doi = {10.1038/s41467-024-48512-w}, pages = {12}, year = {2024}, abstract = {Today, more than 70 carbon pricing schemes have been implemented around the globe, but their contributions to emissions reductions remains a subject of heated debate in science and policy. Here we assess the effectiveness of carbon pricing in reducing emissions using a rigorous, machine-learning assisted systematic review and meta-analysis. Based on 483 effect sizes extracted from 80 causal ex-post evaluations across 21 carbon pricing schemes, we find that introducing a carbon price has yielded immediate and substantial emission reductions for at least 17 of these policies, despite the low level of prices in most instances. Statistically significant emissions reductions range between -5\% to -21\% across the schemes (-4\% to -15\% after correcting for publication bias). Our study highlights critical evidence gaps with regard to dozens of unevaluated carbon pricing schemes and the price elasticity of emissions reductions. More rigorous synthesis of carbon pricing and other climate policies is required across a range of outcomes to advance our understanding of "what works" and accelerate learning on climate solutions in science and policy.}, language = {en} } @techreport{LessmannGrunerKalkuhletal.2024, type = {Working Paper}, author = {Lessmann, Kai and Gruner, Friedemann and Kalkuhl, Matthias and Edenhofer, Ottmar}, title = {Emissions Trading with Clean-up Certificates}, series = {CEPA Discussion Papers}, journal = {CEPA Discussion Papers}, number = {79}, issn = {2628-653X}, doi = {10.25932/publishup-64136}, url = {http://nbn-resolving.de/urn:nbn:de:kobv:517-opus4-641368}, pages = {35}, year = {2024}, abstract = {We analyze how conventional emissions trading schemes (ETS) can be modified by introducing "clean-up certificates" to allow for a phase of net-negative emissions. Clean-up certificates bundle the permission to emit CO2 with the obligation for its removal. We show that demand for such certificates is determined by cost-saving technological progress, the discount rate and the length of the compliance period. Introducing extra clean-up certificates into an existing ETS reduces near-term carbon prices and mitigation efforts. In contrast, substituting ETS allowances with clean-up certificates reduces cumulative emissions without depressing carbon prices or mitigation in the near term. We calibrate our model to the EU ETS and identify reforms where simultaneously (i) ambition levels rise, (ii) climate damages fall, (iii) revenues from carbon prices rise and (iv) carbon prices and aggregate mitigation cost fall. For reducing climate damages, roughly half of the issued clean-up certificates should replace conventional ETS allowances. In the context of the EU ETS, a European Carbon Central Bank could manage the implementation of cleanup certificates and could serve as an enforcement mechanism.}, language = {en} } @article{KritikosMalirantaNippalaetal.2024, author = {Kritikos, Alexander S. and Maliranta, Mika and Nippala, Veera and Nurmi, Satu}, title = {Does gender of firm ownership matter?}, series = {Journal of population economics}, volume = {37}, journal = {Journal of population economics}, number = {2}, publisher = {Springer}, address = {Berlin}, issn = {0933-1433}, doi = {10.1007/s00148-024-01030-x}, pages = {1 -- 31}, year = {2024}, abstract = {We examine how the gender of business owners is related to the wages paid to female relative to male employees working in their firms. Using Finnish register data and employing firm fixed effects, we find that the gender pay gap is—starting from a gender pay gap of 11 to 12\%—two to three percentage points lower for hourly wages in female-owned firms than in male-owned firms. Results are robust to how the wage is measured, as well as to various further robustness checks. More importantly, we find substantial differences between industries. While, for instance, in the manufacturing sector, the gender of the owner plays no role in the gender pay gap, in several service sector industries, like ICT or business services, no or a negligible gender pay gap can be found, but only when firms are led by female business owners. Businesses with male ownership maintain a gender pay gap of around 10\% also in the latter industries. With increasing firm size, the influence of the gender of the owner, however, fades. In large firms, it seems that others—firm managers—determine wages and no differences in the pay gap are observed between male- and female-owned firms.}, language = {en} } @article{XinYingTiberiusAlnooretal.2024, author = {XinYing, Chew and Tiberius, Victor and Alnoor, Alhamzah and Camilleri, Mark and Khaw, Khai Wah}, title = {The dark side of metaverse: a multi-perspective of deviant behaviors from PLS-SEM and fsQCA findings}, series = {International journal of human-computer interaction}, journal = {International journal of human-computer interaction}, publisher = {Taylor \& Francis}, address = {London}, issn = {1044-7318}, doi = {10.1080/10447318.2024.2331875}, pages = {21}, year = {2024}, abstract = {The metaverse has created a huge buzz of interest because such a phenomenon is emerging. The behavioral aspect of the metaverse includes user engagement and deviant behaviors in the metaverse. Such technology has brought various dangers to individuals and society. There are growing cases reported of sexual abuse, racism, harassment, hate speech, and bullying because of online disinhibition make us feel more relaxed. This study responded to the literature call by investigating the effect of technical and social features through mediating roles of security and privacy on deviant behaviors in the metaverse. The data collected from virtual network users reached 1121 respondents. Partial Least Squares based structural equation modeling (PLS-SEM) and fuzzy set Qualitative Comparative Analysis (fsQCA) were used. PLS-SEM results revealed that social features such as user-to-user interaction, homophily, social ties, and social identity, and technical design such as immersive experience and invisibility significantly affect users' deviant behavior in the metaverse. The fsQCA results provided insights into the multiple causal solutions and configurations. This study is exceptional because it provided decisive results by understanding the deviant behavior of users based on the symmetrical and asymmetrical approach to virtual networks.}, language = {en} } @article{BorckSchrauth2024, author = {Borck, Rainald and Schrauth, Philipp}, title = {Urban pollution: a global perspective}, series = {Journal of environmental economics and management}, volume = {126}, journal = {Journal of environmental economics and management}, publisher = {Elsevier}, address = {Amsterdam}, issn = {0095-0696}, doi = {10.1016/j.jeem.2024.103013}, year = {2024}, abstract = {We use worldwide gridded satellite data to analyse how population size and density affect urban PM 2.5 pollution. We find that more populated and denser grid cells are more exposed to pollution. However, across urban areas, exposure increases with cities' population size but decreases with density. Moreover, the population effect is driven mostly by population commuting to core cities rather than the core city population itself. We analyse heterogeneity by geography and income levels. A counterfactual simulation shows that exposure could fall by up to 40\% if population size were equalized across all cities within countries, but the relocation of population from large to small cities that maximizes welfare would be small.}, language = {en} } @article{TiberiusWeyland2024, author = {Tiberius, Victor and Weyland, Michael}, title = {Improving curricula for higher entrepreneurship education}, series = {Education sciences}, volume = {14}, journal = {Education sciences}, number = {2}, publisher = {MDPI}, address = {Basel}, issn = {2227-7102}, doi = {10.3390/educsci14020130}, pages = {1 -- 17}, year = {2024}, abstract = {Existing curricula for entrepreneurship education do not necessarily represent the best way of teaching. How could entrepreneurship curricula be improved? To answer this question, we aim to identify and rank desirable teaching objectives, teaching contents, teaching methods, and assessment methods for higher entrepreneurship education. To this end, we employ an international real-time Delphi study with an expert panel consisting of entrepreneurship education instructors and researchers. The study reveals 17 favorable objectives, 17 items of content, 25 teaching methods, and 15 assessment methods, which are ranked according to their desirability and the group consensus. We contribute to entrepreneurship curriculum research by adding a normative perspective.}, language = {en} } @article{KowalczykAmannStrefleretal.2024, author = {Kowalczyk, Katarzyna A. and Amann, Thorben and Strefler, Jessica and Vorrath, Maria-Elena and Hartmann, Jens and de Marco, Serena and Renforth, Phil and Foteinis, Spyros and Kriegler, Elmar}, title = {Marine carbon dioxide removal by alkalinization should no longer be overlooked}, series = {Environmental research letters}, volume = {19}, journal = {Environmental research letters}, number = {7}, publisher = {IOP Publishing}, address = {Bristol}, issn = {1748-9326}, doi = {10.1088/1748-9326/ad5192}, pages = {12}, year = {2024}, abstract = {To achieve the Paris climate target, deep emissions reductions have to be complemented with carbon dioxide removal (CDR). However, a portfolio of CDR options is necessary to reduce risks and potential negative side effects. Despite a large theoretical potential, ocean-based CDR such as ocean alkalinity enhancement (OAE) has been omitted in climate change mitigation scenarios so far. In this study, we provide a techno-economic assessment of large-scale OAE using hydrated lime ('ocean liming'). We address key uncertainties that determine the overall cost of ocean liming (OL) such as the CO2 uptake efficiency per unit of material, distribution strategies avoiding carbonate precipitation which would compromise efficiency, and technology availability (e.g., solar calciners). We find that at economic costs of 130-295 \$/tCO2 net-removed, ocean liming could be a competitive CDR option which could make a significant contribution towards the Paris climate target. As the techno-economic assessment identified no showstoppers, we argue for more research on ecosystem impacts, governance, monitoring, reporting, and verification, and technology development and assessment to determine whether ocean liming and other OAE should be considered as part of a broader CDR portfolio.}, language = {en} } @article{CaliendoCobbClarkPfeiferetal.2023, author = {Caliendo, Marco and Cobb-Clark, Deborah A. and Pfeifer, Harald and Uhlendorff, Arne and Wehner, Caroline}, title = {Managers' risk preferences and firm training investments}, series = {European economic review}, journal = {European economic review}, publisher = {Elsevier}, address = {Amsterdam}, issn = {0014-2921}, doi = {10.1016/j.euroecorev.2023.104616}, pages = {36}, year = {2023}, abstract = {This study analyses the impact of managers' risk preferences on their training allocation decisions. We begin by providing nationally representative evidence that managers' risk-aversion is negatively correlated with the likelihood that their firms engage in any worker training. Using a novel vignette study, we then demonstrate that risk-tolerant and risk-averse decision makers have significantly different training preferences. Risk aversion results in increased sensitivity to turnover risk. Managers who are risk-averse offer less general training and are more reluctant to train workers with a history of job mobility. Adopting a weighting approach to flexibly control for observed differences in the characteristics of risk-averse and risk-tolerant managers, we show that our findings cannot be explained by heterogeneity in either managers' observed characteristics or the type of firms where they work. All managers, irrespective of their risk preferences, are sensitive to the investment risk associated with training, avoiding training that is more costly or that targets those with less occupational expertise or nearing retirement. This provides suggestive evidence that the risks of training are primarily due to the risk that trained workers will leave the firm (turnover risk) rather than the risk that the benefits of training do not outweigh the costs (investment risk).}, language = {en} } @article{ClemensEydamHeinemann2023, author = {Clemens, Marius and Eydam, Ulrich and Heinemann, Maik}, title = {Inequality over the business cycle: the role of distributive shocks}, series = {Macroeconomic dynamics}, volume = {27}, journal = {Macroeconomic dynamics}, number = {3}, publisher = {Cambridge University Press}, address = {Cambridge}, issn = {1365-1005}, doi = {10.1017/S1365100521000523}, pages = {571 -- 600}, year = {2023}, abstract = {This paper examines how wealth and income inequality dynamics are related to fluctuations in the functional income distribution over the business cycle. In a panel estimation for OECD countries between 1970 and 2016, although inequality is, on average countercyclical and significantly associated with the capital share, one-third of the countries display a pro- or noncyclical relationship. To analyze the observed pattern, we incorporate distributive shocks into an RBC model, where agents are ex ante heterogeneous with respect to wealth and ability. We find that whether wealth and income inequality behave countercyclically or not depends on the elasticity of intertemporal substitution and the persistence of shocks. We match the model to quarterly US data using Bayesian techniques. The parameter estimates point toward a non-monotonic relationship between productivity and inequality fluctuations. On impact, inequality increases in response to TFP shocks but subsequently declines. Furthermore, TFP shocks explain 17\% of inequality fluctuations.}, language = {en} } @phdthesis{GohlGreenaway2023, author = {Gohl-Greenaway, Niklas}, title = {Essays in public economics}, doi = {10.25932/publishup-60902}, url = {http://nbn-resolving.de/urn:nbn:de:kobv:517-opus4-609026}, school = {Universit{\"a}t Potsdam}, pages = {10, 291}, year = {2023}, abstract = {This cumulative dissertation uses economic theory and micro-econometric tools and evaluation methods to analyse public policies and their impact on welfare and individual behaviour. In particular, it focuses on policies in two distinct areas that represent fundamental societal challenges in the 21st century: the ageing of society and life in densely-populated urban agglomerations. Together, these areas shape important financial decisions in a person's life, impact welfare, and are driving forces behind many of the challenges in today's societies. The five self-contained research chapters of this thesis analyse the forward looking effects of pension reforms, affordable housing policies as well as a public transport subsidy and its effect on air pollution.}, language = {en} } @article{FranksKalkuhlLessmann2023, author = {Franks, Max and Kalkuhl, Matthias and Lessmann, Kai}, title = {Optimal pricing for carbon dioxide removal under inter-regional leakage}, series = {Journal of environmental economics and management}, volume = {117}, journal = {Journal of environmental economics and management}, publisher = {Elsevier}, address = {Amsterdam}, issn = {1096-0449}, doi = {10.1016/j.jeem.2022.102769}, year = {2023}, abstract = {Carbon dioxide removal (CDR) moves atmospheric carbon to geological or land-based sinks. In a first-best setting, the optimal use of CDR is achieved by a removal subsidy that equals the optimal carbon tax and marginal damages. We derive second-best policy rules for CDR subsidies and carbon taxes when no global carbon price exists but a national government implements a unilateral climate policy. We find that the optimal carbon tax differs from an optimal CDR subsidy because of carbon leakage and a balance of resource trade effect. First, the optimal removal subsidy tends to be larger than the carbon tax because of lower supply-side leakage on fossil resource markets. Second, net carbon exporters exacerbate this wedge to increase producer surplus of their carbon resource producers, implying even larger removal subsidies. Third, net carbon importers may set their removal subsidy even below their carbon tax when marginal environmental damages are small, to appropriate producer surplus from carbon exporters.}, language = {en} }