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Research has shown that financially incentivizing sustainable behaviors may undermine individuals' conformity to pro-environmental social norms, but it remains unclear why and when such a crowding out effect occurs. Using data from a quasi-experiment in Quzhou, China, this study has tested crowding out in a local incentive program for household recycling and evaluated the causal mechanisms and boundary conditions of crowding out. The reward program reduced residents' inclination to conform to their neighbors' recycling behaviors and persuasion, which was driven by the lowering of the first- and second-order beliefs underlying norm conformity. The crowding out effect and pathways were particularly salient among people with high levels of environmental self-identity or community social embeddedness. Moreover, framing the incentivized behavior in an environmentally beneficial way could not mitigate crowding out. Overall, the results contribute to refined theories of crowding out and have important implications for the design of environmental policies. [ABSTRACT FROM AUTHOR]

Monetary incentives are widely used to align employee actions with employer objectives. We conducted a field experiment in a retail chain to evaluate whether an attendance bonus could reduce employee absenteeism. Apprentices in 232 stores were randomly assigned to a control group or one of two treatment groups in which a monetary or time-off attendance bonus was introduced for one year. We find that neither variant of the attendance bonus led to a systematic reduction in absenteeism. On the contrary, the monetary attendance bonus increased absenteeism substantially by around 50% on average, which corresponds to more than five additional days absent per employee and year. This effect was driven by the most recently hired apprentices. Survey results reveal that the monetary attendance bonus shifted the perception of absenteeism as acceptable behavior. The backfiring effect persisted beyond the end of the experiment, indicating a lasting erosion of social norms. This paper was accepted by Marie Claire Villeval, behavioral economics and decision analysis. Funding: Funding by the Deutsche Forschungsgemeinschaft (DFG; German Research Foundation) [Grant EXC 2126/1–390838866] is gratefully acknowledged. Supplemental Material: The data files and online appendix are available at https://doi.org/10.1287/mnsc.2022.00484. [ABSTRACT FROM AUTHOR]

At present, China regards philanthropy as an important component of social security, social governance, and the third distribution of resources. Structural changes in government expenditure can drive the adjustment of social resources; therefore, it is fundamental to investigate the macroeconomic transmission effect of government expenditure on the development of the philanthropic sector in order to promote the sustainable development of philanthropy and ensure the fairness and justice of social distribution. The results of a regression analysis on provincial panel data from 2007 to 2020 indicated the following: (1) Government expenditure exhibits crowding-out effects on various dimensions of the philanthropic sector. (2) In terms of regional development disparities, government guidance shows crowding-out effects on the development of philanthropy in the eastern and central regions; meanwhile, it demonstrates complementary effects on the dimensions of charitable donations and the number of social organizations in the western region. (3) Furthermore, in terms of the regional distribution of social organizations by industry, government guidance in the eastern region exhibits crowding-out effects on the numbers of social organizations in the fields of science and technology, education, culture, health, and sports; meanwhile, in the western region, it shows complementary effects. Additionally, in the central region, it shows a complementary effect only in the cultural sector, with crowding-out effects in other industries. Therefore, greater flexibility should be granted to the philanthropic sector, in which the construction of hub-type philanthropic organizations and the creation of regional industry cooperation platforms promote the relatively balanced development of philanthropy. [ABSTRACT FROM AUTHOR]

We test the effect of going public on economic growth in the areas surrounding initial public offering (IPO) firms. We compare the effects of IPO filers that complete their IPOs with those that do not, using post-filing stock market fluctuations as an instrument for IPO completion. We show that IPOs that are large relative to the size of their counties lead to a 1.1 percentage point relative reduction in annual county-level establishment growth, with similar effects for employment and population growth. There are no corresponding effects for relatively small IPOs. These negative effects appear to be driven by a crowding out of local sector peers, but the crowding out also disrupts local agglomerations and slows down growth among other businesses that rely on local demand. Overall, our results indicate that macroeconomic gains from IPOs trade off against disruptions in local agglomeration economies where public firms originate. [ABSTRACT FROM AUTHOR]

This study advances understanding of the relationship between government support and private donations, by further investigating the mechanisms underlying that relationship and by examining a nonmonetary form of government support, namely, shared services. We use a survey experimental design to highlight U.S. donors' perceptions of government-supported nonprofits. The results suggest that donors are less willing to give to government-funded nonprofits. This is not only because donors see government funding as a substitute for their donations but also because donors perceive government-funded nonprofits as cost-inefficient. The results also suggest that donors' relative reluctance to donate to government-funded nonprofits is not because donors perceive government-funded nonprofits as less impactful and that donors' decisions about giving do not vary according to the forms of government support nonprofits receive. Overall, our findings stress the importance of governments simplifying administrative procedures for nonprofits to apply for and manage government funding. [ABSTRACT FROM AUTHOR]

Tax havens are often connected to growth in tourism, as finance and tourism conveniently share infrastructural prerequisites. This paper addresses the detrimental impacts of a tax haven development strategy adopted by small open economies in relation to the development of their tourism industry. Utilizing the synthetic control method, we find that since the 2016 Panama Papers scandal, Panama's tourism exports have fallen relative to an estimated counterfactual level that would have otherwise been attained. Moreover, based on an analysis of panel data drawn from 20 small open economies, we find that in the long run, the growth of the financial industry crowds out the tourism industry. Our findings warn tourism practitioners, based in tax havens, that they face an additional risk linked to potential tax scandals. Furthermore, the tourism industry may suffer reputational harm due to tax haven blacklisting and the crowding out of productive resources by the financial industry. JEL classifications: F43, H26, O57, Z32 [ABSTRACT FROM AUTHOR]

We conduct a field experiment with Amazon Mechanical Turk ("AMT") workers to causally assess the effect of introducing a control mechanism in an existing work relationship on workers' performance on tasks of varying difficulty. We find that introducing control significantly reduces performance. This reduction occurs primarily on challenging tasks, while performance on simple tasks is unaffected. The negative effects are primarily driven by workers who exhibit non-pecuniary motivation in the absence of control. Our results show that there are adverse effects of control, and they suggest that these adverse effects are of particular concern to firms that rely on high performance on challenging tasks. [ABSTRACT FROM AUTHOR]

Levels of government debt-to-GDP have been rising substantially for over a decade in emerging market economies such as South Africa, which has led to much debate around the implementation of large-scale debt-financed fiscal stimulus programs in response to the economic fallout of the global covid-19 pandemic. Debt-financed fiscal policies directly stimulate aggregate demand through government expenditure or tax cuts, but their effectiveness is highly dependent on direct crowding-out of private sector expenditure, spill-over effects to the private sector through a higher risk premium on interest rates, and the interaction between fiscal policy and monetary policy. Using an open-economy dynamic stochastic general equilibrium model for South Africa, we identify the effect of six different fiscal policy instruments on short-term and long-term interest rates. These disaggregated expenditure and revenue shocks raise long-term real yields between 18 and 29 basis points, but there are non-negligible differences in the dynamic responses to each fiscal instrument. Our main findings suggest that, in the context of fiscal sustainability, an investment-driven debt-financed fiscal stimulus programme would reduce the government debt-to-GDP ratio, especially in periods of economic slack when monetary policy would typically be more accommodative. In fact, since the global financial crisis, monetary policy has reduced the burden of fiscal adjustment in response to rising debt and a rising risk premium. But further shocks to the risk premium could offset any gains from the current stance of monetary policy (for example, a credit rating shock raises the long-term government bond rate 155 basis points). [ABSTRACT FROM AUTHOR]

Judging on the basis of standard accounts of commodification, one might reasonably suggest that liberalism intrinsically lacks an adequate theory of commodification. Liberalism, with its commitment to individual choice and to neutrality as regards competing evaluation practices, seems conceptually incapable of identifying or abolishing many significant forms of commodification. This essay aims to refute this claim. It employs a strategy of appealing to the harm principle as grounds for a liberal anti-commodification theory. I claim that we are harmed when we are denied ways to meaningfully engage in certain evaluative practices, ways that depend on evaluations shared with others with whom we stand in meaningful social relationships. Markets can crowd out these shared evaluations, and to this extent cause us psychological harm; this in turn supplies grounds for restrictions on certain markets within a liberal state. [ABSTRACT FROM AUTHOR]

ABSTRACT This research aims to illustrate how, under the scenario of global financialization, Colombia’s productive model changed and now is led by finance which extracted value, creating instability, and provoking a crowding out effect on real sector embodied here by the manufacture share of GDP. The above became evident in the 1990s thanks to free-market reforms implemented. The research uses heterodox theory to empirically verify the hypotheses by creating variables representing the proposed phenomena and exposing them through descriptive analysis and a VARX model.

This research aims to illustrate how, under the scenario of global financialization, Colombia's productive model changed and now is led by finance which extracted value, creating instability, and provoking a crowding out effect on real sector embodied here by the manufacture share of GDP. The above became evident in the 1990s thanks to freemarket reforms implemented. The research uses heterodox theory to empirically verify the hypotheses by creating variables representing the proposed phenomena and exposing them through descriptive analysis and a VARX model. [ABSTRACT FROM AUTHOR]

This paper explores whether public investment crowds out or crowds in private investment. To this aim, we build a database of about half a million firms from 49 countries. We find that the effect of public investment on corporate investment depends on leverage, liquidity constraint, and firm's operating (labor) efficiency. In line with theory, public investment boosts private investment for firms with low leverage, but not for firms with high leverage, for firms that are financially constrained or that have low operating efficiency. [ABSTRACT FROM AUTHOR]

“Moral hazard” links geoengineering to mitigation via the fear that either solar geoengineering (solar radiation management, SRM) or carbon dioxide removal (CDR) might crowd out the desire to cut emissions. Fear of this crowding-out effect ranks among the most frequently cited risks of (solar) geoengineering. We here test moral hazard versus its inverse in a large-scale, revealed-preference experiment (n ~ 340,000) on Facebook and find little to no support for either outcome. For the most part, talking about SRM or CDR does not motivate our study population to support a large US environmental non-profit’s mission, nor does it turn them off relative to baseline climate messaging, except when using extreme messengers and framings. Our results indicate the importance of actors and reasoned narratives of (solar) geoengineering to help guide public discourse. [ABSTRACT FROM AUTHOR]

How does trade affect the making and implementation of environmental policies? I extend our understanding about this broad research question with an understudied case: government support for environmental innovation. As the foremost channel wherein cross-border technology transfer occurs, trade materializes the positive externality of technology investment. With this in mind, countries may tend to strategically underfund environmental technologies—particularly when their trade partners enlarge that spending—to have more money to use otherwise and to avoid politically awkward innovation failures. To substantiate this crowding-out argument, I perform spatial regression with data from 32 OECD countries, 1982–2017, and find that government spending on environmental R&D in one country is negatively correlated with that of the country's trade partners in environmental goods. My research contributes to the literature by adding new to our understanding about the international trade-environmental policy nexus, depicting a new scenario wherein states underprovide global public goods, and showing the strategic calculus underlying the use of technology-push strategy in addressing climate change. [ABSTRACT FROM AUTHOR]

This study examines how variation in government borrowing affects corporate acquisition activity around the world. Using a large sample of firms and deals from 50 countries between 1991 and 2017, the paper finds that government debt issuance is strongly negatively associated with acquisition activity at the firm and aggregate levels. An instrumental variable approach corroborates these findings, thus supporting their causal interpretation. In response to increases in government borrowing, firms appear to make more value-enhancing deals. These effects are stronger for cash-financed deals and for financially stronger firms. Collectively, these findings suggest that rising government debt leads to 'real crowding out' by affecting firms' ability to make large investments. [ABSTRACT FROM AUTHOR]

This paper analyses a set of housing market policies in an augmented DiPasquale-Wheaton (ADPW) model where the price-rent (PR) ratio ensures housing market equilibrium across different types of tenure. The aim of the paper is educational, putting several housing market policies into a comprehensive context where the rental housing market, the housing construction industry and the market for owner-occupied housing are interrelated. Housing market dynamics takes both direct and indirect effects into account. The paper finds that introducing tax-deductible mortgage interest rates has a positive effect on house prices. This policy stimulates housing starts and pushes down rental prices. A property tax has a negative effect on house prices while lifting the rental price as the housing industry contracts. Social housing policy interventions on the supply side of the housing market partly crowd out commercial housing supply. Demand-side vouchers have stronger short-run effects as long-run effects incorporate the housing construction industry’s reaction to house price signals. Finally, rental subsidies create a gap between the rent paid by a tenant and the rent received by a landlord. The aggregate effect of a rental subsidy is related to the elasticities of supply and demand, where not only renters, but also homeowners and landlords, may benefit when supply and demand are very elastic.

Tobacco consumption implies a dilemma in the allocation of the family budget. Hence, the objective of this study is to determine the effect of tobacco consumption on expenditure patterns within Costa Rican households. The 2018 National Household Income and Expenditure Survey is used to estimate Engel curves through a Quadratic Almost Ideal Demand System, using the Seemingly Unrelated Regression model for a set of 11 expenditure categories. Due to heteroskedasticity and endogeneity, the Generalized Method of Moment Three-Stage-Least-Squares (GMM-3SLS) is used since it provides more efficient parameter estimates. Results show that tobacco consumption is associated with a crowding-out effect on health expenditure and with a crowding-in effect on restaurant and hotel expenditures. Furthermore, tobacco consumption shows a crowding-in effect on alcoholic beverages for every income quintile. This suggests that tobacco consumption could harm the country´s standard of living and not only the realm of health.

The spread of vector-borne diseases poses considerable public health challenges in India, such that both government and private households engage in initiatives to tackle the problem. This study utilises two nationally representative datasets (2018 and 2012) to determine if action undertaken by state/local government(s) in India in tackling the problems of mosquitoes/flies is associated with a crowding out of private efforts in addressing the problem; or instead is associated with greater private action. Study findings reveal that local/state government action is associated with an increase in household effort in dealing with the problem of mosquitoes/flies. Action by state/local governments in India may convey information to households which may alter their decision-making calculus regarding returns on investments triggering an increase in private effort complementing the public effort. Accordingly, simple government-sponsored advertising campaigns may not be efficacious in promulgating desired behavioural responses. This study finds that direct government action aimed at mitigating the transmission of vector-borne diseases, together with investment in education, social infrastructure and health system interaction may provide positive information signals to households thus enhancing private investment in health-related activity. [ABSTRACT FROM AUTHOR]

Internal whistleblowing systems are supposed to fight misconduct within organizations. Because it is difficult to study their efficacy in the field, scientific evidence on their performance is rare. This is problematic, because these systems bind substantial resources and might generate the erroneous impression of compliance in a company in which misconduct is prevalent. We therefore suggest a versatilely extendable experimental workhorse that allows the systematic study of internal whistleblowing systems in the lab. As a first step, we tested the efficacy of whistleblowing systems if internal punishment for misconduct is mild and hesitant which is usually the case in practice, as several fraud surveys confirm. Our results show that under these conditions almost nobody blew the whistle, and misconduct occurred even more frequently with than without a whistleblowing system. The institutionalization of whistleblowing seemed to crowd out the intrinsic motivation to act compliantly. Moreover, when a whistleblowing system was either unavailable or not used, misconduct was highly contagious and spread quickly. Yet, when we implemented severe and ensured punishment for misconduct, whistleblowing systems could deter wrongdoing. In such a setting, people were willing to blow the whistle and the prevalence of misconduct dropped substantially. Altogether, our results highlight the interaction between institutions and preferences and can support the design of compliance measures within organizations. For compliance managers a key takeaway is that if companies preach a zero-tolerance policy, they should practice it as well. Otherwise, they might even worsen the situation. [ABSTRACT FROM AUTHOR]

We investigate how the mandatory adoption of International Financial Reporting Standards (IFRS) by publicly listed firms in the European Union affects peer private firms. We find that private firms' capital investment decreases significantly after the IFRS mandate, relative to public firms. Private firms also display decreased investment when benchmarked against firms relatively insulated from the impact of the IFRS mandate, but the magnitude of the effect is smaller in this case. These results are consistent with the hypothesis that mandatory IFRS reporting (combined with other reforms), while increasing public firms' financing and investment, crowds out funding for private firms. The effect is more pronounced for larger private firms and in industries where public peers have greater external financing needs. Our evidence suggests that financial reporting regulations cause shifts in resource allocation in an economy. [ABSTRACT FROM AUTHOR]

Economic theory does not give clear predictions on the impact of social security wealth on private wealth. While the basic life-cycle hypothesis predicts full displacement, many more advanced theoretical contributions anticipate only a limited offset. Empirical research on the issue is also not conclusive. In this paper, we measure the substitution between social security wealth and private wealth in Poland. To obtain measures of long-term substitution, we measure the displacement effects of social security wealth on net wealth. Our estimates of the effects on consumption and the saving rate reflect a short-term impact. Our results do not provide support for the hypothesis that social security wealth crowds out private savings in the long term. The short-term evidence is mixed, but the effects of social security wealth on consumption are at best weak, while the impact on saving rates is not statistically significant. In our view, in transition economies, the influence of social security wealth on private wealth is weaker than in developed economies because the wealth distribution has been to a large extent transformed by random and rapid events such as the privatisation of housing assets.

This article traces the history of 'crowding out', and its use as a justification for austerity and state deflation from its origins in the 1920s to its latest post‐2010 incarnation. It examines why governments have kept turning to austerity and continue to justify it on the grounds that public sector activity crowds out more productive private activity, despite the accumulated evidence that this traditional pro‐market formulation has failed to deliver its stated goals. It examines three other embedded forms of crowding out that have been highly damaging—leading to weakened social resilience and more fragile economies—but which have been ignored by both governments and mainstream political economists. [ABSTRACT FROM AUTHOR]

The Nigerian government has borrowed for more than three decades to fund the growing fiscal deficit based on a weak tax revenue base. After the repayment of the country's foreign loans in 2006, the borrowing structure has been dominated by domestic loans. Between 2006 and 2020, domestic borrowing has grown by more than 800 per cent. This study examines the effect of domestic borrowing on Nigeria's macroeconomic variables from 1975 to 1980. The variables examined against the effect of domestic borrowing include economic growth, financial development (broad money supply and credit to private sector), external borrowing, interest rate, inflation, industrial production, private investment, trade openness and population growth rate. The study utilised the Bayesian Vector Autoregressive (BVAR) model. The BVAR approach gives more realistic estimations than other VAR models as it considers prior information steady states during analysis. The study also adopts the Cholesky impulse response function and variance decomposition approach in the investigation. The study found a long-run equilibrium relationship between domestic borrowing and other macroeconomic variables. Also, domestic borrowing positively and significantly affected economic growth, industrial production and inflation. However, domestic borrowing negatively and significantly affects trade openness. Although the effect of domestic borrowing on the financial development variables (broad money supply and credit to the private sector) is negative, it is insignificant. The Bayesian VAR impulse response simulation demonstrates that the fiscal policy shock from domestic borrowing impacts the macroeconomic variables in line with the estimated regression results. As a follow-up, the variance decomposition results show that the decomposition of the shocks from government domestic borrowing is borne more by external borrowing, broad money supply and interest rate in the order of magnitude. The study recommends a restriction in monetary policy to benchmark and closely checkmate the aggressive spending from domestic borrowing. Also, the Nigerian government should improve investment in infrastructure to enhance private sector productivity and expand taxes revenue base to mitigate the reliance on borrowing as a source of funding for fiscal deficit. Furthermore, the country's productivity must be coordinated by the government to expand the sources of foreign exchange earnings to enhance stability in the country's external sector. [ABSTRACT FROM AUTHOR]

A tradition in political economy holds that constitutions should be designed under the assumption that politicians are knaves. A criticism of this position says that a constitution so designed will cause political actors to behave worse than they otherwise would. Designing a constitution for knaves creates knaves. I critique this argument in the current paper. I advance two claims. First, all constitutions create knaves, because the activity of politics itself creates knaves. Second, knavish constitutions better cultivate virtue when compared to constitutions that lack knavish constraints and guardrails. Put together, the two arguments imply the criticism has it exactly backwards: if you want virtuous politicians, design constitutions under the assumption that they are knaves. [ABSTRACT FROM AUTHOR]

A decline in the monarch butterfly population led the U.S. Fish and Wildlife Service to acknowledge monarchs should be listed under the 1973 Endangered Species Act. This research evaluates farmer interest in restoring monarch habitat on their non‐cropped acres to help circumvent such a listing. Results suggest that efforts to promote habitat restoration on non‐cropped acres should focus on voluntary participation and make programs as easy as possible through design and technical assistance. The results also suggest that even a successful program can only provide a small fraction of the habitat needed to meet current restoration goals. [ABSTRACT FROM AUTHOR]

Background High out-of-pocket (OOP) health expenditures are a common problem in developing countries. Studies rarely investigate the crowding-out effect of OOP health expenditures on other areas of household consumption. OOP health costs are a colossal burden on families and can lead to adjustments in other areas of consumption to cope with these costs. Methods This cross-sectional study used self-reported household consumption data from the nationally representative Household Socioeconomic Survey (HSES), collected in 2018 by the National Statistical Office of Mongolia. We estimated a quadratic conditional Engel curves system to determine intrahousehold resource allocation among 12 consumption variables. The 3-stage least squared method was used to deal with heteroscedasticity and endogeneity problems to estimate the causal crowding-out effect of OOP. Results The mean monthly OOP health expenditure per household was ₮64 673 (standard deviation [SD] = 259 604), representing approximately 6.9% of total household expenditures. OOP health expenditures were associated with crowding out durables, communication, transportation, and rent, and with crowding in education and heating for all households. The crowding-out effect of ₮10 000 in OOP health expenditures was the largest for food (₮5149, 95% CI = -8582; -1695) and crowding-in effect was largest in heating (₮2691, 95% CI = 737; 4649) in the lowest-income households. The effect of heating was more than 10 times greater than that in highest-income households (₮261, 95% CI = 66; 454); in the highest-income households, food had a crowding-in effect (₮179, 95% CI = -445; 802) in absolute amounts. In terms of absolute amount, the crowding-out effect for food was up to 5 times greater in households without social health insurance (SHI) than in those with SHI. Conclusion Our findings suggest that Mongolia’s OOP health expenses are associated with reduced essential expenditure on items such as durables, communication, transportation, rent, and food. The effect varies by household income level and SHI status, and the lowest- income families were most vulnerable. SHI in Mongolia may not protect households from large OOP health expenditures.

This study empirically explores the existence of any cross-sector differences in bank lending behaviour in Pakistan. A wider set of both demand- and supply-side variables are included, and the ARDL model is employed to estimate the results. The empirical findings confirm that significant cross-sector differences regarding the impact of different variables on private sector credit exist in the short run. Moreover, in the long run, the impact of various factors on credit to the private sector are the same across sectors. While domestic deposits positively influence credit, non-performing loans have a negative effect on credit. Interest rate has no significant effect on credit in either the short or long term. Lastly, government borrowing from commercial banks crowds out the private sector. The findings point towards a weaker transmission of monetary policy through the credit channel and support the idea that the availability of funds is more important for private sector credit penetration in a country such as Pakistan with limited resources, whereby effective policy measures are needed to stimulate savings in the economy. [ABSTRACT FROM AUTHOR]

As international efforts to mitigate greenhouse gases continue to fall short of global targets, the scientific community increasingly debates the role of solar geoengineering in climate policy. Given the infancy of these technologies, the debate is not yet whether to deploy solar geoengineering but whether solar geoengineering deserves consideration and research funding. Looming large over this discussion is the moral hazard conjecture – normalizing solar geoengineering will decrease mitigation efforts. Using a controlled experiment of a collective-risk social dilemma that simulates the strategic decisions of heterogeneous groups to mitigate emissions and deploy solar geoengineering, we find no evidence for the moral hazard conjecture. On the contrary, when people in the experiment are given the option to deploy solar geoengineering, average investment in mitigation increases. [ABSTRACT FROM AUTHOR]

Language skills are central to refugee integration and the availability of language courses could thus be a limiting factor. We explore how the most important provider of language courses in Germany, adult education centers (VHS), adapted their course supply to the refugee wave of 2015/2016. Our results highlight two channels through which the local environment can affect opportunities for participation in adult learning: First, exploiting the quasi-random allocation of refugees to counties, we causally estimate by how much VHS scaled up their German language course (DAF) supply as a reaction. Moreover, we show that DAF courses were created almost exclusively at the cost of other courses, that is, by crowding out. Second, we uncover heterogeneities in scaling success. VHS with more prior DAF course experience and larger VHS adapted better, which shows the relevance of initial conditions in course offers. [ABSTRACT FROM AUTHOR]

This paper argues that an entrepreneurial state can inadvertently crowd out entrepreneurship. Using the context provided by Singapore, the paper finds that coordinated policies that prioritize and target capital, knowledge, and human capital accumulation in particular industries, sectors, technologies, and firms have created a formidable societal knowledge filter, which in turn can impede endogenous entrepreneurial activity. By serving as the entrepreneur, Singapore's entrepreneurial state imposes its vision by assuming the core entrepreneurial values and traits of opportunity recognition, discovery, and action. The entrepreneurial state, at least in the case of Singapore, retards the transition to an entrepreneurial society, which, paradoxically, is the vision of Singapore's entrepreneurial state. Plain English Summary: States increasingly engage in entrepreneurial activities. This paper explains how the policies and activities of such entrepreneurial states may inadvertently create barriers to a more inclusive entrepreneurial society where entrepreneurship is embraced by diverse citizens. Drawing on the case of Singapore, this paper shows that it is not the individual state activities in the entrepreneurial sphere, but the mix of activities, which starves entrepreneurship. The article focuses on state activities in the areas of capital, knowledge, and human capital, and shows how such activities jointly have reduced the scope of private entrepreneurial endeavor. In doing so, the article provides knowledge on the relationship between entrepreneurial states and an inclusive entrepreneurial society. It draws attention to the effects of policy configurations and action on entrepreneurship. [ABSTRACT FROM AUTHOR]

Copyright of Polish Journal of Economics / Gospodarka Narodowa is the property of SGH Warsaw School of Economics and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of ECO Revista Académica is the property of Universidad Rafael Landivar and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

The article proposes a modified version of a theoretical model that crowds out less educated workforce from the informal economy in response to a shock in government transfers. The negative impact of universal child benefits (UCB) is measured by the outflow of labour from the informal economy in Poland. After it was introduced in the country in 2016, the “Family 500+” child benefit programme probably caused a permanent outflow of some 160,000 jobs from the labour market. The study verifies this assumption with a real business cycle (RBC) model, with two types of households responding to a positive shock resulting from government transfers. The endogenous growth factor in the model results from the rate of return on higher education and lifelong learning. The model describes the statistical aggregates of the Polish economy. A Bayesian estimation shows an acceptable fit to the time series, which allows for wider use of the fiscal impulse resulting in a decline in the economic activity of beneficiaries. The study adds to a debate on the margins of government intervention in the economy, which at some point may displace less educated workers in the shadow economy.

To motivate public participation in climate change mitigation, both "carrot" policies that create positive incentives for mitigated carbon and "stick" policies that create negative incentives for emitted carbon have been widely applied. Given the joint deployment of these measures, a key question is whether they are compatible with each other. Focusing on the Low-Carbon Reward Scheme (LCRS) and carbon taxes, two prominent proposals on China's climate policy agenda, this study evaluates how one incentive policy affects public support for the other. The results of a large survey experiment with Hangzhou residents indicate a two-way crowding-out effect, wherein introducing the LCRS diminished support for the tax, albeit primarily among LCRS proponents, and introducing the tax reduced support for the LCRS. Aligning with the proposed account, crowding out was driven by a decrease in policy effectiveness and fairness perceptions. These findings reveal a contradictory relationship between carrot and stick policies at the citizen level and illuminate the underlying mechanism. • Both carrot and stick policies are applied to motivate climate mitigation behaviors. • We identify a two-way crowding-out effect between these policies in public opinion. • Introducing a stick (carbon tax) reduces support for a carrot (low-carbon reward). • Introducing a carrot reduces support for a stick among people favoring the carrot. • Crowding out is driven by weakened policy effectiveness and fairness perceptions. [ABSTRACT FROM AUTHOR]

The role of residents in the calculation of economic impact remains a point of contention. It is unclear if changes in resident spending caused by an event contribute positively, negatively, or not at all. Building on previous theory, we develop a comprehensive model that explains all 72 possible behaviors of residents based on changes in (a) spending, (b) multiplier, (c) timing of expenditures, and (d) geographic location of spending. Applying the model to Super Bowl 50 indicates that few residents were affected and positive and negative effects were relatively equivalent; thus, their overall impact is negligible. This leaves practitioners the option to engage in the challenging process of gathering data on all four variables on all residents or to revert back to the old model of entirely excluding residents from economic impact. From a theoretical perspective, there is a pressing need to properly conceptualize the time variable in economic impact studies. [ABSTRACT FROM AUTHOR]

Motivation: To prevent job losses, firms facing insolvency in China may be kept running by bank credit, even though they show few signs of returning to profit. These loss-making firms are termed "zombies". Purpose: Does keeping zombie firms operating block access to credit for financially healthy firms, thereby slowing their growth, and consequently the number of jobs they might create? We analyse the effect of zombie firms within a postal zone--a sub-division of the county--on the growth of employment in non-zombie firms in the same zone. Methods and approach: Zombie firms are identified as those that have been unprofitable for at least two successive years, and that have a high and rising ratio of liabilities to assets. Data come from China's industrial enterprise database for 1998-2008 and 2011-2013, gathered from manufacturing, extractive industry, and utilities enterprises with annual sales of more than RMB 5 million (RMB 20 million for 2011 and beyond). It covers between 83,000 and 217,000 firms for the years examined. We use regression to examine the relationship between the presence of zombie firms and employment growth in healthy firms. We test the robustness of the analysis. Findings: Between 1999 and 2013 the share of firms in the database classified as zombies fell from almost 10% to under 3%. Regression analysis shows that the presence of zombies in the same postal code does indeed slow the growth of employment in healthy firms. This effect is stronger for private firms, small firms, and those located in central China. Results are robust when considering start-up firms, analysing relations at county level, and checking for endogeneity. We show that the most likely mechanism that slows the growth of healthy firms is being crowded out of credit markets by banks that allocate their limited credit to keep zombies operating. Policy implications: While it is tempting for government to pressure banks to keep zombie firms operating, thereby avoiding them shutting down with loss of jobs, the cost is high in slowing the growth of financially healthy firms. Banks should offer credit based on expected returns and risk, rather than keeping insolvent firms going. Local and national government should take note that protecting zombie firms has medium-and long-term costs in lost growth of employment. [ABSTRACT FROM AUTHOR]

Countries of the Middle East and Central Asia depend heavily on natural resources for their exports, income, and employment. This study is a preliminary investigation that explores the effect of natural resources on domestic investment in a sample of 12 highly resource-dependent countries in the Middle East and Central Asia from 2000 to 2019. The recently advanced cross-sectional dependent auto-regressive distributed lag (CS-ARDL) model and panel quantile regression are employed. The results validate the accelerator theory that an increase of the non-oil GDP growth rate has a robust positive impact on domestic investment, while natural resources crowd-out domestic investment. The long-run estimate of ICT reveals a significant positive impact, while corruption shows a significant negative effect. These findings urge sample resource-dependent countries to focus on developing ICT-based enterprises and control prevailing corruption levels. Moreover, adopting liberal trade policies can also enhance domestic investment opportunities. [ABSTRACT FROM AUTHOR]

Background: High out-of-pocket (OOP) health expenditures are a common problem in developing countries. Studies rarely investigate the crowding-out effect of OOP health expenditures on other areas of household consumption. OOP health costs are a colossal burden on families and can lead to adjustments in other areas of consumption to cope with these costs. Methods: This cross-sectional study used self-reported household consumption data from the nationally representative Household Socioeconomic Survey (HSES), collected in 2018 by the National Statistical Office of Mongolia. We estimated a quadratic conditional Engel curves system to determine intrahousehold resource allocation among 12 consumption variables. The 3-stage least squared method was used to deal with heteroscedasticity and endogeneity problems to estimate the causal crowding-out effect of OOP. Results: The mean monthly OOP health expenditure per household was ₮64 673 (standard deviation [SD] = 259 604), representing approximately 6.9% of total household expenditures. OOP health expenditures were associated with crowding out durables, communication, transportation, and rent, and with crowding in education and heating for all households. The crowding-out effect of ₮10 000 in OOP health expenditures was the largest for food (₮5149, 95% CI = -8582; -1695) and crowding-in effect was largest in heating (₮2691, 95% CI = 737; 4649) in the lowest-income households. The effect of heating was more than 10 times greater than that in highest-income households (₮261, 95% CI = 66; 454); in the highest-income households, food had a crowding-in effect (₮179, 95% CI = -445; 802) in absolute amounts. In terms of absolute amount, the crowding-out effect for food was up to 5 times greater in households without social health insurance (SHI) than in those with SHI. Conclusion: Our findings suggest that Mongolia's OOP health expenses are associated with reduced essential expenditure on items such as durables, communication, transportation, rent, and food. The effect varies by household income level and SHI status, and the lowest-income families were most vulnerable. SHI in Mongolia may not protect households from large OOP health expenditures. [ABSTRACT FROM AUTHOR]

This is an applied econometric analysis of labour market data for the United States. We study the impact of several factors on overflow of overeducated employees into various job categories. We use panel data regression analysis with fixed and random effects. We also use data visualisation to investigate the overeducation trends during 2002–2016 for various occupation categories. Our dataset consists of seven sets of annual data for 704 occupations. We investigate this phenomenon at two levels: 1) overflow of university graduates into occupations that do not require a university degree, and 2) overflow of Masters and PhD degree holders into occupations that require a bachelor's degree or less. We observe that the overeducation has increased in most occupations and it causes a crowding out effect; an adequately educated worker might be outcompeted by an overeducated worker. While the income premium of a university education has decreased over time, the income advantage of university education over a high school degree has persisted. Furthermore, our regression analysis has shown that the overeducation ratio has a positive correlation with the median earnings of an occupation and its opportunities for self-employment. The results hold for both college graduates and holders of graduate degrees. [ABSTRACT FROM AUTHOR]

This paper investigates whether foreign direct investment (FDI) crowds-out/in domestic investment in Jordan. We analyze the effect on the aggregate economy using data from 1980 to 2017. The Autoregressive Distributed Lag (ARDL) model was used for short and long term relationships. The analysis shows that FDI crowds out domestic investment in Jordan. The channels of this crowding-out effect may be manifold. If FDI is directed to existing projects through privatization and does not create new investment, crowding out may occur. FDI may also crowd out domestic investment when MNCs enter sectors previously dominated by state-owned firms. [ABSTRACT FROM AUTHOR]

This paper argues that the concept of intrinsic motivation has been used by economists in inconsistent ways because the underlying theories of intrinsic motivation, imported into economics from psychology, are competing and mutually exclusive despite employing the same terminology. I first identify and analyze three distinct economic accounts where intrinsic motivation refers to different things due to different underlying psychological theories employed. I then discuss implications these differences have for empirical work and incentive-based policy interventions. Finally, I use this discussion as a case study to demonstrate the shortcomings of the recently proposed pragmatic synthesis between neoclassical and behavioral economics. If there are multiple and fundamentally different psychological theories of the same phenomenon, using their insights in economic analysis is hardly just a matter of a straightforward pragmatic choice among the various tools in the economist's toolbox. [ABSTRACT FROM AUTHOR]

External debt is essential for economic growth; however, high levels of public debt adversely affect growth via debt overhang, crowding-out of domestic private investment, and constraining countercyclical fiscal policy. This paper estimates the causal relationship between external public debt and economic growth in India, along with other macroeconomic variables, using annual time series data for 41 years, from 1980 to 2020, and applying the error correction mechanism estimation method. The debt burden is segmented into two parts - external debt stock and external debt service - and are measured as the percentage share to external debt to GDP and percentage share of total external debt service to total foreign exchange earnings, respectively. The estimated results show a significant positive impact of external debt stock on economic growth in the long run. There is no evidence of a debt overhang problem, but evidence of external debt service potentially affects growth by crowding out private investment. The effect of debt stock is less noteworthy, as the negative effect of debt service exceeds the positive debt stock effect. The adverse effect of debt service, both in the long and short run, is significant. The short-run disequilibrium is corrected at a reasonably good speed, providing the sanguinity of the external public debt in India. [ABSTRACT FROM AUTHOR]