intensive margin
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2021 ◽  
pp. 1-36
Author(s):  
Julio González-Díaz ◽  
Ignacio Palacios-Huerta ◽  
José M. Abuín

Abstract We connect two large bodies of scientific inquiry. First, important theories in the social sciences establish that human preferences are reference-dependent. Second, a separate field of research documents substantial differences in preferences and attitudes across genders. Specifically, we examine the universe of official classic chess games (more than 250,000 subjects and 22 million games). This allows us to study differences across genders both in cognitive performance (intensive margin) and in competitive participation (extensive margin), using the fact that personal bests act as reference points. We find that males and females behave very differently around their personal bests in both margins.


De Economist ◽  
2021 ◽  
Author(s):  
Laurentiu-Cristian Ciobotaru ◽  
Sul Kim ◽  
Arthur van Soest

AbstractUsing representative survey data on the Dutch population, we analyze households’ actual participation and stated preferences for crowdfunding involvement at the extensive and intensive margin, with emphasis on the relation with investing in socially responsible assets. We find that crowdfunding investors are higher educated and more future oriented than others, whereas risk aversion plays a negative but insignificant role. Financial literacy is positively associated with knowing about crowdfunding, but not with actual participation. A stated choice preference experiment largely confirms these relations. At the intensive margin, however, results are rather different: Women have a stronger preference for crowdfunding than men do. Financial literacy reduces the preferred share invested in crowdfunding. We find a strong positive relation between crowdfunding and socially responsible investing. We identify several common factors: a desire to contribute to improving society and a lack of confidence in traditional financial institutions. Comparing stated and revealed preferences, we find that the potential for attracting more crowdfunding funders is much smaller than for attracting socially responsible investors.


Author(s):  
Libor Dusek ◽  
Christian Traxler

Abstract This paper studies how punishment affects future compliance behavior and isolates deterrence effects mediated by learning. Using administrative data from speed cameras that capture the full driving histories of more than a million cars over several years, we evaluate responses to punishment at the extensive (receiving a speeding ticket) and intensive margin (tickets with higher fines). Two complementary empirical strategies a regression discontinuity design and an event study coherently document strong responses to receiving a ticket: the speeding rate drops by a third and reoffense rates fall by 70% Higher fines produce a small but imprecisely estimated additional effect. All responses occur immediately and are persistent over time, with no backsliding towards speeding even two years after receiving a ticket. Our evidence rejects unlearning and temporary salience effects. Instead, it supports a learning model in which agents update their priors on the expected punishment in a coarse manner.


Author(s):  
Elsa Perdrix ◽  
Quitterie Roquebert

AbstractThis paper investigates the causal effect of the amount of formal care used on the informal care received by formal care users. We use an original instrument for formal care volume based on local disparities (NUTS 3 level, 96 units) in the price of formal care. Using the French CARE survey, we use a two-part model to assess the effect of formal care on the extensive and the intensive margin of informal care. An increase in the amount of formal care is found to be associated with a small decrease in the probability of using informal care. Heterogeneity tests show that this negative effect is mainly driven by help for daily activities provided by women. At the intensive margin, informal care is not significantly affected by the amount of formal care. Reforms increasing subsidies for formal care can thus be suspected to have a limited effect on informal care arrangements.


World Economy ◽  
2021 ◽  
Author(s):  
Xin Zhao ◽  
Jeff Luckstead ◽  
Stephen Devadoss

2021 ◽  
pp. 1-46
Author(s):  
Michael Geruso ◽  
Timothy J. Layton ◽  
Grace McCormack ◽  
Mark Shepard

Abstract Insurance markets often feature consumer sorting along both an extensive margin (whether to buy) and an intensive margin (which plan to buy). We present a new graphical theoretical framework that extends a workhorse model to incorporate both selection margins simultaneously. A key insight from our framework is that policies aimed at addressing one margin of selection often involve an economically meaningful trade-off on the other margin in terms of prices, enrollment, and welfare. Using data fromMassachusetts, we illustrate these trade-offs in an empirical sufficient statistics approach that is tightly linked to the graphical framework we develop.


2021 ◽  
pp. 2150004
Author(s):  
TINGTING XIONG ◽  
HAO SUN

This paper investigates the effect of bilateral investment treaties (BITs) on the extensive and intensive product margins of exports in sectors with different credit constraints. The model in this paper demonstrates that such investment liberalization increases the extensive product margin by lowering the variable costs of selling abroad, while it decreases the intensive product margin by lowering both the fixed investment costs and the variable costs. Moreover, the effects of investment liberalization are stronger in financially more vulnerable sectors. Using a detailed dataset of 190 countries and 27 manufacturing sectors from 1988 to 2006, this paper furnishes robust evidence that BITs increase the extensive margin of exports from developed countries and decrease the intensive margin of exports. It further shows that BITs decrease the intensive margin of exports from developed countries more in the sectors that are more dependent on external finance. Similarly, the intensive margin of exports from developed countries in low tangibility sectors falls by 11.81% because of BITs, while the intensive margin in high tangibility sectors is quite stable with BITs.


2021 ◽  
Author(s):  
Edward N Okeke

During a health pandemic health workers have to balance two competing objectives: their own welfare vs. that of their patients. Intuitively, attending to sick patients during a pandemic poses risks to health workers because some of these patients could be infected. One way to reduce risk is by reducing contact with patients. These changes could be on the extensive margin, e.g., seeing fewer patients; or, more insidiously, on the intensive margin, by reducing the duration/intensity of contact. This paper studies risk avoidance behavior during the Covid-19 pandemic and examines implications for patient welfare. Using primary data on thousands of patient-provider interactions between January 2019 and October 2020 in Nigeria, I present evidence of risk compensation by health workers along the intensive margin. For example, the probability that a patient receives a physical examination has dropped by about a third. I find suggestive evidence of negative effects on health outcomes.


Empirica ◽  
2021 ◽  
Author(s):  
Michael Christl ◽  
Silvia De Poli

AbstractFinancial incentives affect the labour supply decisions of households. However, the impact usually varies significantly across household types. Whilst there is a substantial amount of literature on the labour supply effects of tax reforms and in-work benefits, the impact of changes in social assistance benefits has received less attention. This paper analyses labour supply responses to changes in social assistance. We show that labour supply elasticities vary substantially across gender and household type. Women exhibit higher labour supply elasticities, both on the intensive and the extensive margins. Additionally, labour supply elasticities are typically higher for singles and for households with children. Using these results, we analyse the impact of the Austrian reform proposal “Neue Sozialhilfe” (New Social Assistance), which was introduced in 2019 and substantially cut social assistance benefits for migrants and families with children. The overall effects of the reform are especially strong for men and migrants. Migrants and couples with children, that is, the groups hardest hit by the reform’s social assistance reductions, show the strongest labour supply reactions to the New Social Assistance. Furthermore, we show that overall, the reform is expected to have a positive, but small, effect on the intensive margin of labour supply.


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