I study a dynamic model of electoral competition between candidates with heterogeneous valence. When the candidates’ and voters’ policy preferences differ, the winner extracts rents, limited only by the voters’ threat of electing the weaker candidate. This threat becomes more costly to the voters when the relevant time horizon is longer. Thus, term limits can increase the voters’ bargaining power and their welfare. Term limits are even more important for curbing rent extraction if entry is strategic, as in that case strong incumbents face weaker competition. The paper also compares the welfare properties of seniority caps and stochastic term limits. (JEL C78, D72)
{"title":"Term Limits and Bargaining Power in Electoral Competition","authors":"Germán Gieczewski","doi":"10.1257/mic.20180033","DOIUrl":"https://doi.org/10.1257/mic.20180033","url":null,"abstract":"I study a dynamic model of electoral competition between candidates with heterogeneous valence. When the candidates’ and voters’ policy preferences differ, the winner extracts rents, limited only by the voters’ threat of electing the weaker candidate. This threat becomes more costly to the voters when the relevant time horizon is longer. Thus, term limits can increase the voters’ bargaining power and their welfare. Term limits are even more important for curbing rent extraction if entry is strategic, as in that case strong incumbents face weaker competition. The paper also compares the welfare properties of seniority caps and stochastic term limits. (JEL C78, D72)","PeriodicalId":47467,"journal":{"name":"American Economic Journal-Microeconomics","volume":" ","pages":""},"PeriodicalIF":2.4,"publicationDate":"2022-08-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"49556039","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Elicitation mechanisms typically presume only money enters utility functions. However, nonmonetary objectives are confounders. In particular, psychologists argue people favor bets where ability is involved over equivalent random bets—a preference for control. Our new elicitation method mitigates control objectives and determines that under the widely used matching probabilities method, subjects report beliefs 18 percent higher than their true beliefs to increase control. Nonmonetary objectives account for 68 percent of what would normally be measured as overconfidence. We also find that control is only a desire to bet on doing well; betting on doing badly is perceived as a negative. (JEL C91, D11, D82, D83, D91)
{"title":"Belief Elicitation When More Than Money Matters: Controlling for “Control”","authors":"J. Benoît, J. Dubra, G. Romagnoli","doi":"10.1257/mic.20200017","DOIUrl":"https://doi.org/10.1257/mic.20200017","url":null,"abstract":"Elicitation mechanisms typically presume only money enters utility functions. However, nonmonetary objectives are confounders. In particular, psychologists argue people favor bets where ability is involved over equivalent random bets—a preference for control. Our new elicitation method mitigates control objectives and determines that under the widely used matching probabilities method, subjects report beliefs 18 percent higher than their true beliefs to increase control. Nonmonetary objectives account for 68 percent of what would normally be measured as overconfidence. We also find that control is only a desire to bet on doing well; betting on doing badly is perceived as a negative. (JEL C91, D11, D82, D83, D91)","PeriodicalId":47467,"journal":{"name":"American Economic Journal-Microeconomics","volume":" ","pages":""},"PeriodicalIF":2.4,"publicationDate":"2022-08-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45299653","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
We show that the treatment effect estimated by standard methods such as regression discontinuity analysis or difference-in-differences may contain a transient “learning effect” that is entangled with the long-term effect of the treatment. This learning effect occurs when the variable of interest is the agents’ efforts, when treatment and control correspond to success or failure: success or failure gives agents information about how much their effort matters, and consequently changes the amount of effort they provide after treatment. We examine the impact of the learning effect and when it is likely to be substantial. (JEL C13, C21, D72, D74, D83, I20)
{"title":"Learning in Games and the Interpretation of Natural Experiments","authors":"D. Fudenberg, D. Levine","doi":"10.1257/mic.20200106","DOIUrl":"https://doi.org/10.1257/mic.20200106","url":null,"abstract":"We show that the treatment effect estimated by standard methods such as regression discontinuity analysis or difference-in-differences may contain a transient “learning effect” that is entangled with the long-term effect of the treatment. This learning effect occurs when the variable of interest is the agents’ efforts, when treatment and control correspond to success or failure: success or failure gives agents information about how much their effort matters, and consequently changes the amount of effort they provide after treatment. We examine the impact of the learning effect and when it is likely to be substantial. (JEL C13, C21, D72, D74, D83, I20)","PeriodicalId":47467,"journal":{"name":"American Economic Journal-Microeconomics","volume":" ","pages":""},"PeriodicalIF":2.4,"publicationDate":"2022-08-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44800522","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This paper develops a theory of crime in which potential victims elect their vigilance levels. When vigilance expenses are greater than expected property losses, an increase in penalties raises crime, namely, a criminal Laffer curve emerges. This curve is higher and peaks earlier when victims face higher costs. Thus, the government may wish to subsidize vigilance rather than increase penalties. Indeed, an increase in penalties may shift the vigilance levels further away from their socially optimal ones. Finally, the crime rate first rises and then falls in the property value at stake, which is consistent with the empirical evidence. (JEL D91, H76, K42)
{"title":"A Theory of Crime and Vigilance","authors":"Jorge Vásquez","doi":"10.1257/mic.20190339","DOIUrl":"https://doi.org/10.1257/mic.20190339","url":null,"abstract":"This paper develops a theory of crime in which potential victims elect their vigilance levels. When vigilance expenses are greater than expected property losses, an increase in penalties raises crime, namely, a criminal Laffer curve emerges. This curve is higher and peaks earlier when victims face higher costs. Thus, the government may wish to subsidize vigilance rather than increase penalties. Indeed, an increase in penalties may shift the vigilance levels further away from their socially optimal ones. Finally, the crime rate first rises and then falls in the property value at stake, which is consistent with the empirical evidence. (JEL D91, H76, K42)","PeriodicalId":47467,"journal":{"name":"American Economic Journal-Microeconomics","volume":" ","pages":""},"PeriodicalIF":2.4,"publicationDate":"2022-08-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43826152","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
I introduce a model of international production that allows the production chain to be of any length or number of sourcing countries and in which the production process does not have to be perfectly sequential. The presence of trade costs in this model makes firms cluster their production geographically, while trade liberalization allows firms to fragment their production more. Clustering patterns depend on the characteristics of the production structure, with stronger clustering associated with longer and less connected structures. Clustering intensity in upstream stages of production is generally higher and less affected by exogenous changes in production structure. (JEL D21, F12, F14, F23, L14, L23, L24)
{"title":"Production Clustering and Offshoring","authors":"Vladimir Tyazhelnikov","doi":"10.1257/mic.20190232","DOIUrl":"https://doi.org/10.1257/mic.20190232","url":null,"abstract":"I introduce a model of international production that allows the production chain to be of any length or number of sourcing countries and in which the production process does not have to be perfectly sequential. The presence of trade costs in this model makes firms cluster their production geographically, while trade liberalization allows firms to fragment their production more. Clustering patterns depend on the characteristics of the production structure, with stronger clustering associated with longer and less connected structures. Clustering intensity in upstream stages of production is generally higher and less affected by exogenous changes in production structure. (JEL D21, F12, F14, F23, L14, L23, L24)","PeriodicalId":47467,"journal":{"name":"American Economic Journal-Microeconomics","volume":" ","pages":""},"PeriodicalIF":2.4,"publicationDate":"2022-08-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46470374","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
I study how trade affects urbanization and real income. To this end, I exploit large-scale exogenous changes in trade stemming from the redrawing of Hungary’s borders after the First World War. I show that urbanization in counties near the new border decreased significantly relative to counties farther away. I rationalize this reduced-form finding in a spatial model in which benefits from trading drive agglomeration around locations where trading activity takes place. Structurally estimating the model, I find a 15.55 percent decrease in Hungarian residents’ average real income after the redrawing of borders, with the largest losses concentrated in border regions. (JEL F11, F14, N34, N74, N94, R12)
{"title":"Trade and Urbanization: Evidence from Hungary","authors":"D. Nagy","doi":"10.1257/mic.20180270","DOIUrl":"https://doi.org/10.1257/mic.20180270","url":null,"abstract":"I study how trade affects urbanization and real income. To this end, I exploit large-scale exogenous changes in trade stemming from the redrawing of Hungary’s borders after the First World War. I show that urbanization in counties near the new border decreased significantly relative to counties farther away. I rationalize this reduced-form finding in a spatial model in which benefits from trading drive agglomeration around locations where trading activity takes place. Structurally estimating the model, I find a 15.55 percent decrease in Hungarian residents’ average real income after the redrawing of borders, with the largest losses concentrated in border regions. (JEL F11, F14, N34, N74, N94, R12)","PeriodicalId":47467,"journal":{"name":"American Economic Journal-Microeconomics","volume":" ","pages":""},"PeriodicalIF":2.4,"publicationDate":"2022-08-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42622324","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-06-30DOI: 10.35429/jm.2022.10.6.16.27
Pamela HERNÁNDEZ-ZURITA, Hortencia ELISEO-DÁNTES, Leticia López-Valdivieso, D. García-Reyes
Microenterprises in Mexico cover 95.2%, generate 45.6% of employment and contribute 15% of the value added to the economy. Contribute to this segment since the competitive environment is not only a matter of productivity, but also that it must be merged with other elements such as quality, efficiency, effectiveness, strategy, having a model and a comprehensive system, everything for an organization to be successful. In a market where the consumer has a variety of options, increased productivity and improved quality are vital factors to ensure the permanence of the organization. That is why the improvement and measurement of productivity must be continuous and is the responsibility of all areas/departments of the organization. In order to increase productivity in this sector, the heads in charge must understand that external variables are closely related to their decision making, the scope of their objectives and the fulfillment of goals.
{"title":"Study of the productivity in microenterprises of the commercial sector for businesswomen in the city of Villahermosa, Tabasco, and generate a proposal for improvement","authors":"Pamela HERNÁNDEZ-ZURITA, Hortencia ELISEO-DÁNTES, Leticia López-Valdivieso, D. García-Reyes","doi":"10.35429/jm.2022.10.6.16.27","DOIUrl":"https://doi.org/10.35429/jm.2022.10.6.16.27","url":null,"abstract":"Microenterprises in Mexico cover 95.2%, generate 45.6% of employment and contribute 15% of the value added to the economy. Contribute to this segment since the competitive environment is not only a matter of productivity, but also that it must be merged with other elements such as quality, efficiency, effectiveness, strategy, having a model and a comprehensive system, everything for an organization to be successful. In a market where the consumer has a variety of options, increased productivity and improved quality are vital factors to ensure the permanence of the organization. That is why the improvement and measurement of productivity must be continuous and is the responsibility of all areas/departments of the organization. In order to increase productivity in this sector, the heads in charge must understand that external variables are closely related to their decision making, the scope of their objectives and the fulfillment of goals.","PeriodicalId":47467,"journal":{"name":"American Economic Journal-Microeconomics","volume":"12 1","pages":""},"PeriodicalIF":2.4,"publicationDate":"2022-06-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"74500619","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-06-30DOI: 10.35429/jm.2022.10.6.8.15
Jazmín Balderrabano-Briones, Monserrat ACOSTA-CADENAS, Griselda RODRÍGUEZ-AGUSTÍN, Eva María PRIETO-PEDRAZA
The measurement of productivity in organizations is imperative since it is essential to know the tangible and intangible resources that are available and, at the same time, to know weaknesses and adopt the necessary measures to improve them. For this, the appropriate tools must be available, so the present study used a comprehensive productivity measurement tool with that of a self-diagnosis questionnaire, as its name indicates, this tool seeks to perform an analysis of the productivity comprehensively, that is, encompassing all factors relevant to productivity and competitiveness. It seeks to represent the results of the department store studied quantitatively, and with the data obtained, place the organization within an already established frame of reference and classify it according to the parameters of world-class or less. In addition, it is planned to support the establishment by granting improvement proposals that help correct its most fragile aspects, as well as improve its highest aspects under the continuous improvement approach.
{"title":"Productivity study in a department store in Villahermosa, Tabasco, Mexico, for the proposal of a development model","authors":"Jazmín Balderrabano-Briones, Monserrat ACOSTA-CADENAS, Griselda RODRÍGUEZ-AGUSTÍN, Eva María PRIETO-PEDRAZA","doi":"10.35429/jm.2022.10.6.8.15","DOIUrl":"https://doi.org/10.35429/jm.2022.10.6.8.15","url":null,"abstract":"The measurement of productivity in organizations is imperative since it is essential to know the tangible and intangible resources that are available and, at the same time, to know weaknesses and adopt the necessary measures to improve them. For this, the appropriate tools must be available, so the present study used a comprehensive productivity measurement tool with that of a self-diagnosis questionnaire, as its name indicates, this tool seeks to perform an analysis of the productivity comprehensively, that is, encompassing all factors relevant to productivity and competitiveness. It seeks to represent the results of the department store studied quantitatively, and with the data obtained, place the organization within an already established frame of reference and classify it according to the parameters of world-class or less. In addition, it is planned to support the establishment by granting improvement proposals that help correct its most fragile aspects, as well as improve its highest aspects under the continuous improvement approach.","PeriodicalId":47467,"journal":{"name":"American Economic Journal-Microeconomics","volume":"297 1","pages":""},"PeriodicalIF":2.4,"publicationDate":"2022-06-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"78351642","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-06-30DOI: 10.35429/jm.2022.10.6.1.7
Carlos PÉREZ-JIMÉNEZ, M. Alonso-Calpeño
The aim of this research is to explore in the applicable theoretical perspectives, which innovation factors can be empirically studied in work teams. For that purpose, an integrative review of the literature was carried out using the methodology of search and evaluation for inclusion. A coherent classification, based on theory, was obtained for the innovation factors in work teams that could guide subsequent studies in real life to contribute to the lack of this type of studies reported in the literature.
{"title":"Innovation factors for workteam level empiric studies","authors":"Carlos PÉREZ-JIMÉNEZ, M. Alonso-Calpeño","doi":"10.35429/jm.2022.10.6.1.7","DOIUrl":"https://doi.org/10.35429/jm.2022.10.6.1.7","url":null,"abstract":"The aim of this research is to explore in the applicable theoretical perspectives, which innovation factors can be empirically studied in work teams. For that purpose, an integrative review of the literature was carried out using the methodology of search and evaluation for inclusion. A coherent classification, based on theory, was obtained for the innovation factors in work teams that could guide subsequent studies in real life to contribute to the lack of this type of studies reported in the literature.","PeriodicalId":47467,"journal":{"name":"American Economic Journal-Microeconomics","volume":"5 1","pages":""},"PeriodicalIF":2.4,"publicationDate":"2022-06-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"84226015","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Chung, Glimcher, and Tymula (2019) observed both consumers’ choices over commodity bundles and choices under risk. They assumed a cardinal riskless utility function V representing consumer choices and a cardinal risky utility function U.The two were inconsistent. This note shows that the two functions can be reconciled if we assume that V is ordinal. Then one utility function U can accommodate both risky and riskless choices. (JEL C91, D12, D81)
{"title":"Transforming Ordinal Riskless Utility into Cardinal Risky Utility: A Comment on Chung, Glimcher, and Tymula (2019)","authors":"Peter P. Wakker","doi":"10.1257/mic.20190338","DOIUrl":"https://doi.org/10.1257/mic.20190338","url":null,"abstract":"Chung, Glimcher, and Tymula (2019) observed both consumers’ choices over commodity bundles and choices under risk. They assumed a cardinal riskless utility function V representing consumer choices and a cardinal risky utility function U.The two were inconsistent. This note shows that the two functions can be reconciled if we assume that V is ordinal. Then one utility function U can accommodate both risky and riskless choices. (JEL C91, D12, D81)","PeriodicalId":47467,"journal":{"name":"American Economic Journal-Microeconomics","volume":" ","pages":""},"PeriodicalIF":2.4,"publicationDate":"2022-05-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"49143272","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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