Foundations of Economic Analysis

TL;DR: In this paper, the analysis of consumer demand is used as an example to illustrate the interplay between theoretical and empirical research in economics, and the case study is interpreted as a sequence of sophisticated specification searches.

TL;DR: This paper showed that ethnocentric behavior can emerge from a simple evolutionary model of local competition between individuals, where interactions are treated as one-move Prisoner's Dilemmas, and the inheritance of strategies as genetic, cultural, or (most plausibly) both.

TL;DR: In this article, the authors present the authors' accepted manuscript and the publisher's accepted manuscript, which is available electronically from the publisher from doi:10.1017/S1365100597003088

Abstract: Please send questions and/or remarks of non-scientific nature to driessen@tinbergen.nl. Abstract Existing studies show a positive relationship between business development and conventional human capital as measured by formal education attainment, previous business experience and prior management experience. In this paper, we explore whether illegal entrepreneurship experience (IEE), an unconventional form of human capital is related to the performance and motivation of existing legal businesses in a transition context. Based on data from 399 private business owners in Lithuania, our regression results indicate that IEE is significantly associated with subjective measures of business motivation. It is likely that the more motivated and enthusiastic entrepreneurs started as soon as possible or even earlier and have maintained their motivation throughout. An objective performance measure, i.e. business turnover, is affected by IEE for certain groups of entrepreneurs. Especially younger and more highly educated entrepreneurs with IEE have proven to be able to convert and apply their IEE to a market oriented setting. These results, therefore, do partly support the notion that prior experience in the black or gray market under a centrally planned economic system may provide valuable human capital for entrepreneurs in a more open-market oriented setting. We conclude that IEE is productive for specific types of entrepreneurs and that it can more generally be seen as a selection device for motivated entrepreneurs. We have gratefully utilized the constructive comments on an earlier version of this paper by two anonymous referees. 1 Illegal entrepreneurship experience: Does it make a difference for business performance and motivation? Abstract Existing studies show a positive relationship between business development and conventional human capital as measured by formal education attainment, previous business experience and prior management experience. In this paper, we explore whether illegal entrepreneurship experience (IEE), an unconventional form of human capital is related to the performance and motivation of existing legal businesses in a transition context. Based on data from 399 private business owners in Lithuania, our regression results indicate that IEE is significantly associated with subjective measures of business motivation. It is likely that the more motivated and enthusiastic entrepreneurs started as soon as possible or even earlier and have maintained their motivation throughout. An objective performance measure, i.e. business turnover, is affected by IEE for certain groups of entrepreneurs. Especially younger and more highly educated entrepreneurs with IEE have proven to be able to convert and apply their IEE to a market oriented setting. …

TL;DR: A meta analysis using data from thirteen different functional magnetic resonance imaging studies published in recent years shows that the principle brain area associated with this common representation is a subregion of the ventromedial prefrontal cortex (vmPFC)/orbitofrontal cortex (OFC).

TL;DR: In this paper, the potential of monetary policy to stabilize fluctuations in output and employment is demonstrated in a stochastic rational expectations model in which firms choose, considering average profitability, to set prices in advance of the period when they apply to goods sold.

TL;DR: A theory of the value of children based on the uncertainty-reduction assumption is proposed and a range of hypotheses that follow both from this assumption and from a subsidiary assumption of marital solidarity enhancement are generated.

TL;DR: This paper identifies four areas in which the two schools of extra-welfarism and conventional welfarist economics differ and concludes that these differences are substantive.