[Show abstract][Hide abstract] ABSTRACT: There is a widespread belief that peer effects are important in charitable giving, but little evidence on how donors respond to their peers. Analysing a unique dataset of donations to online fundraising pages, we find positive and sizeable peer effects: a £10 increase in the mean of past donations increases giving by £2.50, on average. Donations respond to both very large and very small amounts and to changes in the mode. We find little evidence that donations signal charity quality – our preferred explanation is that donors use information on earlier donations to decide what is appropriate for them to give. This article is protected by copyright. All rights reserved.
Full-text · Article · Nov 2013 · The Economic Journal
[Show abstract][Hide abstract] ABSTRACT: Market definition, and, in particular, being able to identify who is in which product market, lies at the heart of competition law. The identification of demand elasticities necessary to conduct a formal definition of product market can be time consuming and often there is insufficient data to provide an accurate answer. This paper suggests a possible tool for market definition using stock market data. The method is informative, simple and very quick to undertake. The approach assumes that a company’s returns depend on an economy wide factor, a product market specific factor and company specific idiosyncratic shocks. Given this assumption, the residuals from Market Model regressions will be more correlated for firms in the same product market than between firms in different product markets. To test the validity of this assumption, the central section of the paper looks at whether these correlations do indeed contain information about product markets. Using 51 companies and 13 product markets suggested by the Competition Commission (the “CC”), we calculate the correlation matrix of residuals and for each company identify the company with which it has the highest correlation. If the correlation matrix contains information about product markets then there should be some relationship between the correlations and the suggested CC markets. If the correlation of residuals contains no information with regard to relevant product market, then the chance of the highest correlation for a company being with a company from the same CC defined relevant product market would be roughly 7.5%. However, we find that in 82% of the cases the highest correlation for a company is with a company from the same CC defined relevant market. Finally, we examine the banking, the home credit and the ex-building society markets.
Preview · Article · Jun 2010 · SSRN Electronic Journal
[Show abstract][Hide abstract] ABSTRACT: We examine the impact of …nancial development on earnings in-equality in Brazil in the 1980s and …rst half of the 1990s. The evidence— based initially on time-series, and then on the relatively novel panel time-series data and analysis— shows that …nancial development had a signi…cant and robust e¤ect in reducing inequality during the period. We suggest that this is not only because the poorer can invest the acquired credit in either short or long-term productive activities, but also because those with access to …nancial markets can insulate them-selves, via a process of …nancial adaptation, against recurrent poor macroeconomic performance, which is exempli…ed in Brazil by high rates of ination. The main implication of the results is that a deeper and more active …nancial sector alleviates the high inequality seen in Brazil without the need for distortionary taxation.
Preview · Article · Oct 2009 · Economic Change and Restructuring
[Show abstract][Hide abstract] ABSTRACT: The Centre for Market and Public Organisation (CMPO) is a leading research centre, combining expertise in economics, geography and law. Our objective is to study the intersection between the public and private sectors of the economy, and in particular to understand the right way to organise and deliver public services. The Centre aims to develop research, contribute to the public debate and inform policy-making. CMPO, now an ESRC Research Centre was established in 1998 with two large grants from The Leverhulme Trust. In 2004 we were awarded ESRC Research Centre status, and CMPO now combines core funding from both the ESRC and the Trust. Centre for Market and Public Organisation
[Show abstract][Hide abstract] ABSTRACT: Evidence shows that real-effort investments can affect bilateral bargaining outcomes. This paper investigates whether similar investments can inhibit equilibrium convergence of experimental markets. In one treatment, sellers’ relative effort affects the allocation of production costs, but a random productivity shock ensures that the allocation is not necessarily equitable. In another treatment, sellers’ effort increases the buyers’ valuation of a good. We find that effort investments have a short-lived impact on trading behavior when sellers’ effort benefits buyers, but no effect when effort determines cost allocation. Efficiency rates are high and do not differ across treatments.
Full-text · Article · Jan 2008 · Journal of Public Economics