The Shadow Economy and Morals: A Note

If the established rules are obeyed spontaneously in an economy, this increases economic efficiency since the uncertainties, monitoring costs and incentive problems induced by opportunism can be avoided. Opportunism will be increasedby increasing the incentives for unlawful behaviour, however, and a slight increase in these incentives might cause a cumulative and self-nourishing breakdown of morals. The dangers of the growing shadow economy are louring here

The FIR-absorption of short period quantum wires and the transition from one to two dimensions

We investigate the FIR-absorption of short period parallel quantum wires in a perpendicular quantizing magnetic field. The external time-dependent electric field is linearly polarized along the wire modulation. The mutual Coulomb interaction of the electrons is treated self-consistently in the ground state and in the absorption calculation within the Hartree approximation. We consider the effects of a metal gate grating coupler, with the same or with a different period as the wire modulation, on the absorption. The evolution of the magnetoplasmon in the nonlocal region where it is split into several Bernstein modes is discussed in the transition from: narrow to broad wires, and isolated to overlapping wires. We show that in the case of narrow and not strongly modulated wires the absorption can be directly correlated with the underlying electronic bandstructure.Comment: 15 pages, 9 figures, Revtex, to appear in Phys. Rev.

Distributional Orderings: An Approach with Seven Flavours

We examine individuals' distributional orderings in a number of contexts. This is done by using a questionnaire-experiment that is presented to respondents in any one of seven "flavours" or interpretations of the basic distributional problem. The flavours include inequality, risk, social welfare and justice. The issue of personal involvement in the distributional comparison is explicitly addressed.social welfare, inequality, justice, risk, questionnaire experiments.

To Be or not To Be Involved:A Questionnaire-Experimental View on Harsanyi’sUtilitarian Ethics

According to standard theory founded on Harsanyi (1953, 1955) a social welfarefunction can be appropriately based on the individual's approach to choice underuncertainty. We investigate whether people really do rank distributions according tothe same principles irrespective of whether the comparison involves money payoffs ina risky situation or the distribution of income among persons. We use a questionnaireexperiment to focus on the two different interpretations of the Harsanyi approach.There are important, systematic differences that transcend the cultural background ofrespondents.Impartial observer theorem, utilitarianism, welfare.

Contingent Capital in Executive Compensation

Contingent capital has great potential to improve corporate governance in Systemically Important Financial Institutions (SIFIs). Early initiatives by European SIFIs to include contingent convertible bonds in executive compensation packages lack governance-improving designs. This Article suggests the use of contingent convertible bonds with an early conversion trigger in executive compensation. The proposal adds an important element to the literature on inside debt and the creditor-centered approach to executive compensation. Contingent convertible bonds with early triggers could be preferable to other debt instruments because, in addition to lowering income inequality and increasing sustainability, the early trigger design can improve incentives for executives to lower risk-taking, improve signaling of default risk, and increase incentives for monitoring by creditors and shareholders. The recognition of ownership characteristics in design features adds an important element to the literature on contingent capital trigger designs. The methodological assumptions of incomplete contract theory can improve the analysis of executive compensation arrangements