Fertilizer subsidies and the role of targeting in crowding out: evidence from Kenya

Food Security ◽  
2018 ◽  
Vol 10 (2) ◽  
pp. 397-417 ◽  
Author(s):  
David L. Mather ◽  
Thomas S. Jayne
Keyword(s):  
Crowding Out ◽  
Fertilizer Subsidies

scholarly journals HOW SHOULD WE RECONCILE SELF-REGARDING AND PRO-SOCIAL MOTIVATIONS? A RENAISSANCE OF “DAS ADAM SMITH PROBLEM”

2020 ◽  
Vol 37 (1) ◽  
pp. 80-102
Author(s):  
Natalie Gold
Keyword(s):  
Adam Smith ◽  
Crowding Out ◽  
Private Interests ◽  
Self Interest ◽  
Intrinsic Motivations ◽  
Social Motivations ◽  
Motivation Crowding ◽  
Wealth Of Nations ◽  
Selfish Agents

Abstract“Das Adam Smith Problem” is the name given by eighteenth-century German scholars to the question of how to reconcile the role of self-interest in the Wealth of Nations with Smith’s advocacy of sympathy in Theory of Moral Sentiments. As the discipline of economics developed, it focused on the interaction of selfish agents, pursuing their private interests. However, behavioral economists have rediscovered the existence and importance of multiple motivations, and a new Das Adam Smith Problem has arisen, of how to accommodate self-regarding and pro-social motivations in a single system. This question is particularly important because of evidence of motivation crowding, where paying people can backfire, with payments achieving the opposite effects of those intended. Psychologists have proposed a mechanism for the crowding out of “intrinsic motivations” for doing a task, when payment is used to incentivize effort. However, they argue that pro-social motivations are different from these intrinsic motivations, implying that crowding out of pro-social motivations requires a different mechanism. In this essay I present an answer to the new Das Adam Smith problem, proposing a mechanism that can underpin the crowding out of both pro-social and intrinsic motivations, whereby motivations are prompted by frames and motivation crowding is underpinned by the crowding out of frames. I explore some of the implications of this mechanism for research and policy.

ENDOGENOUS SOCIAL DISTANCING AND CONTAINMENT POLICIES IN SOCIAL NETWORKS

2021 ◽  
Vol 257 ◽  
pp. 101-117
Author(s):  
Fabrizio Adriani ◽  
Dan Ladley
Keyword(s):  
Social Networks ◽  
Network Formation ◽  
Crowding Out ◽  
Policy Intervention ◽  
Negative Externalities ◽  
Formation Theory ◽  
Social Distancing ◽  
Face To Face ◽  
Underlying Network

Can smart containment policies crowd out private efforts at social distancing? We analyse this question from the perspective of network formation theory. We focus in particular on the role of externalities in social distancing choices. We also look at how these choices are affected by factors such as the agents’ risk perception, the speed of the policy intervention, the structure of the underlying network and the presence of strategic complementarities. We argue that crowding out is a problem when the probability that an outbreak may spread undetected is relatively high (either because testing is too infrequent or because tests are highly inaccurate). This is also the case where the choice of relaxing social distancing generates the largest negative externalities. Simulations on a real-world network suggest that crowding out is more likely to occur when, in the absence of interventions, face-to-face contacts are perceived to carry relatively high risk.

Underpricing, Risk Management, Hot Issue and Crowding out Effects: Evidence From the Australian Resources Sector Initial Public Offerings

2010 ◽  
Vol 13 (03) ◽  
pp. 333-361 ◽  
Author(s):  
Hoa Nguyen ◽  
William Dimovski ◽  
Robert Brooks
Keyword(s):  
Risk Management ◽  
Information Content ◽  
Initial Public Offerings ◽  
Crowding Out ◽  
Competition Effect ◽  
Public Offerings ◽  
The Poor ◽  
Industry Competition ◽  
Resource Sector

The main purpose of this paper is to explore the role of risk management, speculative industry competition effect and hot issue markets. We used a sample of 260 initial public offerings (IPOs) in the Australian resource sector for the 1994–2004 period to test the underpricing effect. We do not find any evidence that risk management can reduce the uncertainty relating to the new issue and hence alleviate the extent of underpricing. A plausible explanation for this lack of evidence is the poor information content of publicly available disclosures regarding risk management activities of IPO firms. We further provide evidence that the underpricing returns for resources IPOs are not impacted upon by the strength of alternative speculative IPO markets. We also show that the degree of underpricing adjusts to both market return in the preceding three months and the average underpricing of resources IPOs in the 12 month period leading to the float which offers an explanation to the hot issue effect observed in the IPO market.

scholarly journals Demotivating incentives and motivation crowding out in charitable giving

2017 ◽  
Vol 114 (28) ◽  
pp. 7301-7306 ◽  
Author(s):  
Matthew Chao
Keyword(s):  
Intrinsic Motivation ◽  
Charitable Giving ◽  
Cost Benefit ◽  
Direct Mail ◽  
Crowding Out ◽  
Mediating Role ◽  
Multiattribute Choice ◽  
The Gift ◽  
Motivation Crowding

Research has shown that extrinsic incentives can crowd out intrinsic motivation in many contexts. Despite this, many nonprofits offer conditional thank-you gifts, such as mugs or tote bags, in exchange for donations. In collaboration with a nonprofit, this study implements a direct mail field experiment and demonstrates that thank-you gifts reduced donation rates in a fundraising campaign. Attention-based multiattribute choice models suggest that this is because prospective donors shift attention to the salient gift offer, causing them to underweight less salient intrinsic motives. Attention to the gift may also cause individuals to adopt a more cost–benefit mindset, further de-emphasizing intrinsic motives. Consistent with these hypotheses, crowding out was driven by those who donated higher amounts in the previous year (i.e., those who likely had higher intrinsic motivation). In a complementary online experiment, thank-you gifts also reduced donation rates but only when the gift was visually salient. This corroborates the mediating role of attention in crowding out. Taken together, the laboratory and field results demonstrate that this fundraising technique can be demotivating in some contexts and that this may occur through an attention-based mechanism.

scholarly journals Public Capita and Growth: The Role of Institutions in Development

2021 ◽  
Vol 17 (4) ◽  
pp. 121
Author(s):  
Fred EKA
Keyword(s):  
Developing Countries ◽  
Econometric Model ◽  
Public Capital ◽  
Simultaneous Equations ◽  
Crowding Out ◽  
Private Capital ◽  
African Countries ◽  
Public And Private ◽  
The Public

This study analyzes the links between public capital and growth using an econometric model of simultaneous equations, estimated on a panel of forty-three developing countries over the period 2003-2020. This growth model explains the determinants of GDP and public and private capital stocks. The accumulation of public, private and human capital generates externalities that are sources of endogenous growth. However, the formation of public capital generated a crowding out effect, to the detriment of that of private capital, because of differentiated budgetary constraints. Our results show that several developing countries have moved away from an optimal structure for the growth of sharing of available capital between the public and private sectors. In doing so, are institutions a prerequisite for the economic development of African countries.

scholarly journals A NOTE ON THE CROWDING-OUT OF INVESTMENT BY PUBLIC SPENDING

2010 ◽  
Vol 14 (4) ◽  
pp. 604-615 ◽  
Author(s):  
Olivier Cardi
Keyword(s):  
Open Economy ◽  
Government Expenditure ◽  
Public Spending ◽  
Negative Relationship ◽  
Empirical Literature ◽  
Crowding Out ◽  
Habit Persistence ◽  
Investment Expenditure ◽  
Short Run

One of the most prominent and consistent findings of the recent empirical literature on fiscal policy is that investment expenditure is crowded out by public spending in the short run. In this contribution, we address this empirical fact using a dynamic general equilibrium model and show that the introduction of habit-forming behavior plays a major role in accommodating the observed negative relationship between investment and government expenditure. Our numerical experiments point out the role of consumption inertia in determining the reactions of the open economy: as habit persistence gets stronger, fiscal expansion crowds out real consumption by a smaller amount and investment by a larger one, while the current account enters into a greater deficit.

scholarly journals MANAGING FOREIGN DIRECT INVESTMENTS: THE ROLE OF CROWDING OUT EFFECT

2017 ◽  
Vol 15 (2) ◽  
pp. 93-99
Author(s):  
Zuzana Horváthová ◽  
Anatoly Shishkin ◽  
Vladimir Galanov
Keyword(s):  
Crowding Out ◽  
Foreign Direct Investments
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