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Displaying results 1 to 12 of 12.

  1. Beyond Pigou
    Externalities and Civil Society in the Supply-Demand Framework
    Published: March 2023
    Publisher:  National Bureau of Economic Research, Cambridge, Mass

    The extent of voluntary cooperation in the presence of externalities is shown as an equilibrium outcome in the supply and demand framework. The analysis uses familiar ingredients to provide a new way of understanding the results of the extensive... more

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    Staats- und Universitätsbibliothek Hamburg Carl von Ossietzky
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    The extent of voluntary cooperation in the presence of externalities is shown as an equilibrium outcome in the supply and demand framework. The analysis uses familiar ingredients to provide a new way of understanding the results of the extensive literature beginning with Buchanan, Coase, Ostrom, Shapley, Telser, Tullock, and Williamson showing that a Pigouvian tax is not the only alternative to independently acting individuals who are coordinated merely through distorted market prices. Voluntary cooperation can have a far different incidence than Pigouvian taxes and subsidies while changing the character of the costs resulting from externalities. The paper discusses applications including forest management, volume discounts, residential associations, energy policy, the scope of planning of household activities, and the role of workplaces in preventing infectious disease

     

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    Source: Union catalogues
    Language: English
    Media type: Book
    Format: Online
    Series: NBER working paper series ; no. w31095
    Subjects: Externer Effekt; Pigou-Steuer; Internalisierung externer Effekte; Externalities; Social Choice; Clubs; Committees; Associations; Externalities; Redistributive Effects; Environmental Taxes and Subsidies; Firm Performance: Size, Diversification, and Scope
    Scope: 1 Online-Ressource, illustrations (black and white)
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    Hardcopy version available to institutional subscribers

  2. How Good Are Privacy Guarantees? Platform Architecture and Violation of User Privacy
    Published: June 2023
    Publisher:  National Bureau of Economic Research, Cambridge, Mass

    Many platforms deploy data collected from users for a multitude of purposes. While some are beneficial to users, others are costly to their privacy. The presence of these privacy costs means that platforms may need to provide guarantees about how and... more

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    Helmut-Schmidt-Universität, Universität der Bundeswehr Hamburg, Universitätsbibliothek
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    Staats- und Universitätsbibliothek Hamburg Carl von Ossietzky
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    Many platforms deploy data collected from users for a multitude of purposes. While some are beneficial to users, others are costly to their privacy. The presence of these privacy costs means that platforms may need to provide guarantees about how and to what extent user data will be harvested for activities such as targeted ads, individualized pricing, and sales to third parties. In this paper, we build a multi-stage model in which users decide whether to share their data based on privacy guarantees. We first introduce a novel mask-shuffle mechanism and prove it is Pareto optimal--meaning that it leaks the least about the users' data for any given leakage about the underlying common parameter. We then show that under any mask-shuffle mechanism, there exists a unique equilibrium in which privacy guarantees balance privacy costs and utility gains from the pooling of user data for purposes such as assessment of health risks or product development. Paradoxically, we show that as users' value of pooled data increases, the equilibrium of the game leads to lower user welfare. This is because platforms take advantage of this change to reduce privacy guarantees so much that user utility declines (whereas it would have increased with a given mechanism). Even more strikingly, we show that platforms have incentives to choose data architectures that systematically differ from those that are optimal from the user's point of view. In particular, we identify a class of pivot mechanisms, linking individual privacy to choices by others, which platforms prefer to implement and which make users significantly worse off

     

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    Source: Union catalogues
    Language: English
    Media type: Book
    Format: Online
    Series: NBER working paper series ; no. w31413
    Subjects: Digitale Plattform; Datenschutz; Datensicherheit; Externalities; Search; Learning; Information and Knowledge; Communication; Belief; Unawareness; Information and Internet Services; Computer Software
    Scope: 1 Online-Ressource, illustrations (black and white)
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  3. Internalizing Externalities
    Disclosure Regulation for Hydraulic Fracturing, Drilling Activity and Water Quality
    Published: January 2023
    Publisher:  National Bureau of Economic Research, Cambridge, Mass

    The rise of shale gas and tight oil development has triggered a major debate about hydraulic fracturing (HF). In an effort to mitigate risks from HF, especially with respect to water quality, many U.S. states have introduced disclosure mandates for... more

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    Helmut-Schmidt-Universität, Universität der Bundeswehr Hamburg, Universitätsbibliothek
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    Staats- und Universitätsbibliothek Hamburg Carl von Ossietzky
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    The rise of shale gas and tight oil development has triggered a major debate about hydraulic fracturing (HF). In an effort to mitigate risks from HF, especially with respect to water quality, many U.S. states have introduced disclosure mandates for HF wells and fracturing fluids. We use this setting to study whether targeting corporate activities that have dispersed environmental externalities with disclosure regulation to create public pressure reduces their environmental impact. We find significant improvements in water quality, examining salts that are considered signatures for HF impact, after the disclosure mandates are introduced. We document effects along the extensive and the intensive margin, though most of the improvement comes from the latter. Supporting this interpretation, we find that, after the disclosure mandates, operators pollute less per unit of production, use fewer toxic chemicals, and cause fewer spills and leaks of HF fluids and wastewater. We also show that disclosure enables public pressure and that this pressure facilitates internalization

     

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  4. Peak-Hour Road Congestion Pricing
    Experimental Evidence and Equilibrium Implications
    Published: January 2023
    Publisher:  National Bureau of Economic Research, Cambridge, Mass

    Developing country megacities suffer from severe road traffic congestion, yet the level of congestion is not a direct measure of equilibrium inefficiency. I study the peak-hour traffic congestion equilibrium in Bangalore. To measure travel... more

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    Helmut-Schmidt-Universität, Universität der Bundeswehr Hamburg, Universitätsbibliothek
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    Staats- und Universitätsbibliothek Hamburg Carl von Ossietzky
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    Technische Informationsbibliothek (TIB) / Leibniz-Informationszentrum Technik und Naturwissenschaften und Universitätsbibliothek
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    ZBW - Leibniz-Informationszentrum Wirtschaft, Standort Kiel
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    Developing country megacities suffer from severe road traffic congestion, yet the level of congestion is not a direct measure of equilibrium inefficiency. I study the peak-hour traffic congestion equilibrium in Bangalore. To measure travel preferences, I use a model of departure time choice to design a field experiment with congestion pricing policies and implement it using precise GPS data. Commuter responses in the experiment reveal moderate schedule inflexibility and a high value of time. I then show that in Bangalore, traffic density has a moderate and linear impact on travel delay. My policy simulations with endogenous congestion indicate that optimal congestion charges would lead to a small reduction in travel times, and small commuter welfare gains. This result is driven primarily by the shape of the congestion externality. Overall, these results suggest limited commuter welfare benefits from peak-spreading traffic policies in cities like Bangalore

     

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    Source: Union catalogues
    Language: English
    Media type: Book
    Format: Online
    Series: NBER working paper series ; no. w30903
    Subjects: Verkehrsstau; Maut; Straßenverkehr; Verkehrsmittelwahl; Externer Effekt; Feldforschung; Entwicklungsländer; Bangalore; Field Experiments; Externalities; Externalities; Redistributive Effects; Environmental Taxes and Subsidies; Economic Development; General
    Scope: 1 Online-Ressource, illustrations (black and white)
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    Hardcopy version available to institutional subscribers

  5. On the Efficiency of Competitive Equilibria with Pandemics
    Published: April 2023
    Publisher:  National Bureau of Economic Research, Cambridge, Mass

    The epidemiological literature suggests that virus transmission occurs only when individuals are in relatively close contact. We show that if society can control the extent to which economic agents are exposed to the virus and agents can commit to... more

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    Helmut-Schmidt-Universität, Universität der Bundeswehr Hamburg, Universitätsbibliothek
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    Staats- und Universitätsbibliothek Hamburg Carl von Ossietzky
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    Technische Informationsbibliothek (TIB) / Leibniz-Informationszentrum Technik und Naturwissenschaften und Universitätsbibliothek
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    ZBW - Leibniz-Informationszentrum Wirtschaft, Standort Kiel
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    The epidemiological literature suggests that virus transmission occurs only when individuals are in relatively close contact. We show that if society can control the extent to which economic agents are exposed to the virus and agents can commit to contracts, virus externalities are local, and competitive equilibria are efficient. The Second Welfare Theorem also holds. These results still apply when infection status is imperfectly observed and when agents are privately informed about their infection status. If society cannot control virus exposure, then virus externalities are global and competitive equilibria are inefficient, but the policy implications are very different from those in the literature. Economic activity in this version of our model can be inefficiently low, in contrast to the conventional wisdom that viruses create global externalities and result in inefficiently high economic activity. If agents cannot commit, competitive equilibria are inefficient because of a novel pecuniary externality

     

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    Source: Union catalogues
    Language: English
    Media type: Book
    Format: Online
    Series: NBER working paper series ; no. w31116
    Subjects: Coronavirus; Epidemie; Morbidität; Infektionsschutz; Externer Effekt; Lokale öffentliche Güter; Allgemeines Gleichgewicht; Wohlfahrtsökonomik; Externalities; General; Public Goods
    Scope: 1 Online-Ressource, illustrations (black and white)
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    Hardcopy version available to institutional subscribers

  6. The social value of overreaction to information
    Published: November 2023
    Publisher:  CSEF, Centre for Studies in Economics and Finance, Department of Economics, University of Naples, Naples, Italy

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    ZBW - Leibniz-Informationszentrum Wirtschaft, Standort Kiel
    VS 660
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    Source: Union catalogues
    Language: English
    Media type: Book
    Format: Online
    Series: Working paper / CSEF, Centre for Studies in Economics and Finance ; no. 690
    Subjects: Overreaction; Diagnostic Expectations; Non-Bayesian learning; Taxes onFinancial Transactions; Asymmetric Information; Externalities
    Scope: 1 Online-Ressource (circa 29 Seiten)
  7. Optimal Subsidies for Green Hydrogen Production
    Published: November 2023
    Publisher:  National Bureau of Economic Research, Cambridge, Mass

    Green hydrogen may decarbonize sectors which are difficult to electrify, and the recent Inflation Reduction Act (IRA) provides tax credits to encourage hydrogen production. We analyze a model in which hydrogen produced using electricity replaces... more

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    Helmut-Schmidt-Universität, Universität der Bundeswehr Hamburg, Universitätsbibliothek
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    Staats- und Universitätsbibliothek Hamburg Carl von Ossietzky
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    Technische Informationsbibliothek (TIB) / Leibniz-Informationszentrum Technik und Naturwissenschaften und Universitätsbibliothek
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    Green hydrogen may decarbonize sectors which are difficult to electrify, and the recent Inflation Reduction Act (IRA) provides tax credits to encourage hydrogen production. We analyze a model in which hydrogen produced using electricity replaces natural gas. The electricity may be procured from dedicated renewables or from the grid with and without offsetting. In the absence of Pigouvian taxation, optimal hydrogen subsidies are positive if the unpriced externality from avoided natural gas is larger than the unpriced externality from electricity. With optimally differentiated subsidies, offsetting increases welfare. With undifferentiated subsidies, offsetting can decrease welfare, unless it is restricted to regions with higher unpriced electricity externalities. Short-run parameterization shows that the IRA's subsidy of $3/kg-H2 is rationalized: i) by hydrogen production from dedicated renewables if the social cost of carbon (SCC) is $500 or ii) by hydrogen production from the (relatively clean) grid in California with renewables offsetting (relatively dirty) electricity in the non-RGGI East if the SCC is $185. Allowing offsetting of production in California with renewables in any region does not reduce welfare, but the reverse does not hold

     

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    Source: Union catalogues
    Language: English
    Media type: Book
    Format: Online
    Series: NBER working paper series ; no. w31902
    Subjects: Wasserstoff; Wasserstofftechnologie; Subvention; Wohlfahrtsanalyse; Externalities; Government Policy
    Scope: 1 Online-Ressource, illustrations (black and white)
    Notes:

    Hardcopy version available to institutional subscribers

  8. When Product Markets Become Collective Traps
    The Case of Social Media
    Published: October 2023
    Publisher:  National Bureau of Economic Research, Cambridge, Mass

    Individuals might experience negative utility from not consuming a popular product. For example, being inactive on social media can lead to social exclusion or not owning luxury brands can be associated with having a low social status. We show that,... more

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    Helmut-Schmidt-Universität, Universität der Bundeswehr Hamburg, Universitätsbibliothek
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    Staats- und Universitätsbibliothek Hamburg Carl von Ossietzky
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    Technische Informationsbibliothek (TIB) / Leibniz-Informationszentrum Technik und Naturwissenschaften und Universitätsbibliothek
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    Individuals might experience negative utility from not consuming a popular product. For example, being inactive on social media can lead to social exclusion or not owning luxury brands can be associated with having a low social status. We show that, in the presence of such spillovers to non-users, standard measures that take aggregate consumption as given fail to appropriately capture welfare. We propose a new methodology to measure welfare that accounts for these consumption spillovers, which we apply to estimate the consumer surplus of two popular social media platforms, TikTok and Instagram. In large-scale, incentivized experiments with college students, we show that, while the standard welfare measure suggests a large and positive surplus, our measure accounting for consumption spillovers indicates a negative surplus, with a large share of active users deriving negative utility. We also shed light on the drivers of consumption spillovers to non-users in the case of social media and show that, in this setting, the "fear of missing out" plays an important role. Our framework and estimates highlight the possibility of product market traps, where large shares of consumers are trapped in an inefficient equilibrium and would prefer the product not to exist

     

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    Source: Union catalogues
    Language: English
    Media type: Book
    Format: Online
    Series: NBER working paper series ; no. w31771
    Subjects: Social Web; Mediennutzung; Privater Konsum; Externer Effekt; Wohlfahrtsanalyse; Externalities; Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    Scope: 1 Online-Ressource, illustrations (black and white)
    Notes:

    Hardcopy version available to institutional subscribers

  9. Firm Commitments
    Published: May 2023
    Publisher:  National Bureau of Economic Research, Cambridge, Mass

    A growing fraction of companies globally have made commitments to reduce their carbon emissions by a certain date. While the companies that make commitments subsequently reduce their emissions, the effect on overall emissions of companies (including... more

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    Universitätsbibliothek Freiburg
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    Helmut-Schmidt-Universität, Universität der Bundeswehr Hamburg, Universitätsbibliothek
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    Staats- und Universitätsbibliothek Hamburg Carl von Ossietzky
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    A growing fraction of companies globally have made commitments to reduce their carbon emissions by a certain date. While the companies that make commitments subsequently reduce their emissions, the effect on overall emissions of companies (including those that do not commit) has been small; the companies that commit, and those that make the most ambitious commitments, tend to have lower emissions; firm commitments are less prevalent in countries where governments have made national commitments. Overall, the commitment movements have been successful in drawing the willing but have found greater resistance from the companies that most need to reduce their emissions

     

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    Source: Union catalogues
    Language: English
    Media type: Book
    Format: Online
    Series: NBER working paper series ; no. w31244
    Subjects: Umweltmanagement; Treibhausgas-Emissionen; Kompensationsmaßnahme; Externer Effekt; Unternehmen; Mechanismus-Design-Theorie; Welt; Externalities; Asymmetric and Private Information; Mechanism Design; Non-bank Financial Institutions; Financial Instruments; Institutional Investors; General
    Scope: 1 Online-Ressource, illustrations (black and white)
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    Hardcopy version available to institutional subscribers

  10. Resilience in Vertical Supply Chains
    Published: September 2023
    Publisher:  National Bureau of Economic Research, Cambridge, Mass

    Forward-looking investments determine the resilience of firms' supply chains. Such investments confer externalities on other firms in the production network. We compare the equilibrium and optimal allocations in a general equilibrium model with an... more

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    Universitätsbibliothek Freiburg
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    Helmut-Schmidt-Universität, Universität der Bundeswehr Hamburg, Universitätsbibliothek
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    Staats- und Universitätsbibliothek Hamburg Carl von Ossietzky
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    Technische Informationsbibliothek (TIB) / Leibniz-Informationszentrum Technik und Naturwissenschaften und Universitätsbibliothek
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    ZBW - Leibniz-Informationszentrum Wirtschaft, Standort Kiel
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    Forward-looking investments determine the resilience of firms' supply chains. Such investments confer externalities on other firms in the production network. We compare the equilibrium and optimal allocations in a general equilibrium model with an arbitrary number of vertical production tiers. Our model features endogenous investments in resilience, endogenous formation of supply links, and sequential bargaining over quantities and payments between firms in successive tiers. We derive policies that implement the first-best allocation, allowing for subsidies to input purchases, network formation, and investments in resilience. The first-best policies depend only on production function parameters of the pertinent tier. When subsidies to transactions are infeasible, the second-best subsidies for resilience and network formation depend on production function parameters throughout the network, and subsidies are larger upstream than downstream whenever the bargaining weights of buyers are non-increasing along the chain

     

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    Source: Union catalogues
    Language: English
    Media type: Book
    Format: Online
    Series: NBER working paper series ; no. w31739
    Subjects: Lieferkette; Vertikale Integration; Unternehmensnetzwerk; Investitionsentscheidung; Theorie; Firm Behavior: Theory; Externalities
    Scope: 1 Online-Ressource, illustrations (black and white)
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    Hardcopy version available to institutional subscribers

  11. Resilience in vertical supply chains
    Published: 29 September 2023
    Publisher:  Centre for Economic Policy Research, London

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    LZ 161
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    Universitätsbibliothek Mannheim
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    Source: Union catalogues
    Language: English
    Media type: Book
    Format: Online
    Series: Array ; DP18491
    Subjects: Lieferkette; Vertikale Integration; Unternehmensnetzwerk; Investitionsentscheidung; Theorie; Supply chains; Resilience; Externalities; Production networks
    Scope: 1 Online-Ressource (circa 72 Seiten), Illustrationen
  12. Who wins and who loses from state subsidies?
    Published: 2023
    Publisher:  Universitätsbibliothek Kiel, Kiel