The challenge of enforcing contractual agreements is a pervasive feature of commercial transactions, particularly in developing countries and in transactions that cross borders. Firms thus rely on informal mechanisms – such as repeated relationships – to guarantee compliance.
There is a growing body of evidence from economic research of the importance of better management practices in driving improvements in firms’ performance. But since these innovations have been implemented fairly recently, it is unclear whether the effects persist over the long run.
Arthur Laffer, who was recently awarded the Presidential Medal of Freedom, is famous for sketching an inverted U-shaped diagram of the supposed trade-off between tax rates and tax revenues. The Laffer curve originates from the economist’s 1974 conversation with Wall Street Journal reporter Jude Wanniski, and politicians Dick Cheney and Donald Rumsfeld.
Markets for daily wage labor in agriculture are ubiquitous in poor countries, providing employment for hundreds of millions of workers in India alone. In an exploration of how nominal wages in these markets respond to changing economic conditions, this research finds strong evidence of limited downward adjustment in the face of a negative shock, such as a drought.
The global microloan portfolio is now worth over 102 billion dollars and is growing yearly. This research estimates the impact of the policy and the extent to which this impact is different across different contexts. It finds that overall, the best existing evidence suggests that the average impact of these loans is small and that in the future, it may be beneficial to seek alternative approaches to improve the lives of poor households in the developing world.
How much are low-income individuals willing to pay for health insurance? And what are the implications for insurance market reforms that propose to change government subsidies? Using administrative data from the pioneer subsidized insurance exchange in Massachusetts over the period 2009 to 2013, this study exploits discontinuities in the premium subsidy schedule to estimate willingness to pay and costs of insurance among low-income adults. The researchers have three main findings.
People who are receiving unemployment benefits and looking for a job are typically required to consider occupations beyond their preferred line of work, at least after an initial period of joblessness. But how should jobseekers decide which occupations to consider, and how should employment agencies advise them?
As policymakers, medical providers, insurers and consumers debate myriad proposed solutions to rising healthcare costs in the United States, the idea that insurers should be forced to expand their networks so enrollees can avoid expensive “out-of-network” charges is receiving renewed attention
The number of people who receive long-term disability payments has grown rapidly in many countries, raising the question of whether it is possible for some of them to return to gainful employment.
The Berlin Wall provides a unique natural experiment for identifying the key sources of urban development.
How widespread is tax evasion – and what does that imply for the true extent of inequality?
Is there a better way of measuring poverty.