L - - - Why Industrial Policies Fail : Limited Commitment

Why Industrial Policies Fail : Limited Commitment

The strategic effects of subsidies on output and subsidies on investment differ substantiaily in dynamic models where a government's commitment ability is limited. Output subsidies remain effective even as the period of commitment vanishes, but investment subsidies may become completely ineffective. This difference has been obscured because most existing models of strategic trade policy are sta...

Why users (fail to) read computer usage policies

Purpose – This paper aims to improve understanding of individuals’ awareness and perceptions of computer usage policies (CUPs) and why individuals elect not to read these policies. Design/methodology/approach – MBA students were asked to complete an online survey evaluating their behavioral intention to read CUPs, as well as their performance of this behavior. Factors contributing to the intent...

Why randomized controlled trials fail but needn't: 1. Failure to gain "coal-face" commitment and to use the uncertainty principle.

Optimal sovereign debt policy with private trading: Explaining allocation puzzle

This paper studies optimal sovereign debt policy of the government with limited commitment and compare the optimal policies in economies with and without government’s private capital control. The comparison of optimal sovereign debt policies can rationalize why more financially open market economies show more severe allocation puzzle — more negative relationship between growth and public capita...

Optimal fiscal policy in a small open economy with limited commitment

a r t i c l e i n f o We introduce limited commitment into a standard optimal fiscal policy model in small open economies. We consider the problem of a benevolent government that signs a risk-sharing contract with the rest of the world, and that has to choose optimally distortionary taxes on labor income, domestic debt and international transfers. Both the home country and the rest of the world...