Information asymmetry and deception

Situations such as an entrepreneur overstating a project’s value, or a superior choosing to under or overstate the gains from a project to a subordinate are common and may result in acts of deception. In this paper we modify the standard investment game in the economics literature to study the nature of deception. In this game a trustor (investor) can send a given amount of money to a trustee (or investee). The amount received is multiplied by a certain amount, k, and the investee then decides on how to divide the total amount received. In our modified game the information on the multiplier, k, is known only to the investee and she can send a nonbinding message to the investor regarding its value. We find that 66% of the investees send false messages with both under and over, statement being observed. Investors are naive and almost half of them believe the message received. We find greater lying when the distribution of the multiplier is unknown by the investors than when they know the distribution. Further, messages make beliefs about the multiplier more pessimistic when the investors know the distribution of the multiplier, while the opposite is true when they do not know the distribution

Trust and trustworthiness under information asymmetry and ambiguity

We introduce uncertainty and ambiguity in the standard investment game. In the uncertainty treatment, investors are informed that the return of the investment is drawn from a publicly known distribution function. In the ambiguity treatment, investors are not informed about the distribution function. We find that both trust and trustworthiness are robust to the introduction of these changes

The 2017 Regional Election in Catalonia: An attempt to understand the pro-independence vote

This paper tries to unveil the main factors behind the triumph of the proindependence vote in the 2017 Regional Election in Catalonia. The empirical analysis, which is carried out at the county level and by using a spatial econometric model, reveals that geographical location matters. The estimation results also suggest that the pro-independence vote is mainly linked to the birthplace of individuals. More specifically, it shows that the independence feeling is weaker the higher the share of citizens born outside Catalonia. On the other side, young and highly educated people are more prone to independence. Additionally, it is shown that people working in the public sector are more likely to vote for a political party in favor of Catalonia remaining in Spain, while the opposite happens for those voters working in construction. Finally, the results seem to dispel some myths associated with the role played by the county’s size and level of income on the proindependence vote

The economics and politics of women's rights

Women’s rights and economic development are highly correlated. Today, the discrepancy between the legal rights of women and men is much larger in developing compared to developed countries. Historically, even in countries that are now rich women had few rights before economic development took off. Is development the cause of expanding women’s rights, or conversely, do women’s rights facilitate development? We argue that there is truth to both hypotheses. The literature on the economic consequences of women’s rights documents that more rights for women lead to more spending on health and children, which should benefit development. The politicaleconomy literature on the evolution of women’s rights finds that technological change increased the costs of patriarchy for men, and thus contributed to expanding women’s rights. Combining these perspectives, we discuss the theory of Doepke and Tertilt (2009), where an increase in the return to human capital induces men to vote for women’s rights, which in turn promotes growth in human capital and income per capita

Education, language and national identity: Evidence from education reform in Catalonia

This book presents a synthesis of key recent advances in political-economy research on the various approaches and strategies used in the process of building nations throughout modern history. It features chapters written by leading scholars who describe the findings of their quantitative analyses of the risks and benefits of different nation-building policies. The book is comprised of 26 chapters organised into six sections, each focusing on a different aspect of nation building. The first chapter presents a unified framework for assessing nation-building policies, highlights potential challenges that may arise, provides a summary of each of the other chapters, and draws out the main lessons from them. The following chapters delve into the importance of social interactions for national identification, the role of education, propaganda and leadership, external interventions and wars, and the effects of representation and redistribution. The book offers a nuanced understanding of effective nationbuilding policies

Citizenship, fertility, and parental investments

Citizenship rights are associated with better economic opportunities for immigrants. This paper studies how in a country with a large fraction of temporary migrants the fertility decisions of foreign citizens respond to a change in the rules that regulate child legal status at birth. The introduction of birthright citizenship in Germany in 2000, represented a positive shock to the returns to investment in child human capital. Consistent with Becker's "quality-quantity" model of fertility, we find that birthright citizenship leads to a reduction in immigrant fertility and an improvement in health and socio-emotional outcomes for the children affected by the reform