Fold localization at pre-existing normal faults: field observations and analogue modelling of the Achental structure, Northern Calcareous Alps, Austria

Within the Northern Calcareous Alps (NCA) fold-and-thrust belt of the Eastern Alps, multiple pre-shortening deformation phases have contributed to the structural grain that controlled localization of deformation at later stages. In particular, Jurassic rifting and opening of the Alpine Tethys led to the formation of extensional basins at the northern margin of the Apulian plate. Subsequent Cretaceous shortening within the Northern Calcareous Alps produced the enigmatic Achental structure, which forms a sigmoidal transition zone between two E–W-striking major synclines. One of the major complexities of the Achental structure is that all structural elements are oblique to the Cretaceous direction of shortening. Its sigmoidal form was, therefore, proposed to be a result of forced folding at the boundaries of the Jurassic Achental basin. This study analyses the structural evolution of the Achental structure through integrating field observations with crustal-scale physical analogue modelling to elucidate the influence of pre-existing crustal heterogeneities on oblique basin inversion. From brittle–ductile models that include a weak basal décollement, we infer that oblique shortening of pre-existing extensional faults can lead to the localization of deformation at the pre-existing structure and predicts thrust and fold structures that are consistent with field observations. Consequently, the Achental low-angle thrust and sigmoidal fold train was able to localize at the former Jurassic basin margin, with a vergence opposite to the controlling normal fault, creating the characteristic sigmoidal morphology during a single phase of NW-directed shortening

Real Tax Effects and Tax Perception Effects in Decisions on Asset Allocation

We test the predictions of the theoretical literature initiated by the study of Domar and Musgrave (1944) with a laboratory experiment in which subjects have to decide on the composition of an asset portfolio. Our simple design enables us to distinguish between Real Tax Effects and Perception Effects when a proportional income tax, with and without a full loss offset provision, is introduced. Observed investment behavior is partially inconsistent with the theoretical predictions if we do not control for the Perception Effects. However, if we consider these effects, we find support for the theory. The isolated Perception Effects can explain the unexpected behavior observed in previous studies and has both scientific and political implications

Tax Perception - An Empirical Survey

This paper gives a survey of the experimental literature on the perception (bias) of individuals with respect to their own tax burden and its effect on economic decisions. Six strands of literature are discussed: (1) perception of marginal tax rates, (2) influence of tax complexity on tax perception, (3) taxation and incentives to work, (4) tax salience, (5) tax morale and fairness and (6) money illusion, perceived inflation and fiscal drag. The literature discussed contains more evidence for than against a perception bias

Behavioral Economics and the Public Sector

This thesis consists of four essays dealing with topics that are relevant for the public sector. The essays cover diverse issues of economics partly overlapping with political science. The topics reach from the taxation of labor over monetary policy to preferences over voting institutions. Throughout this thesis it is, in contrast to classical economics, not assumed that humans are necessarily fully rational. Once full rationality is no longer assumed, experiments become an important tool to learn about human behavior. Consequently, most of the work in this thesis makes use of economic experiments

Tax Salience, Voting, and Deliberation

Tax incentives can be more or less salient, i.e. noticeable or cognitively easy to process. Our hypothesis is that taxes on consumers are more salient to consumers than equivalent taxes on sellers because consumers underestimate the extent of tax shifting in the market. We show that tax salience biases consumers' voting on tax regimes, and that experience is an effective de-biasing mechanism in the experimental laboratory. Pre-vote deliberation makes initially held opinions more extreme rather than correct and does not eliminate the bias in the typical committee. Yet, if voters can discuss their experience with the tax regimes they are less likely to be biased

Peers at work: Evidence from the lab

This paper reports the results of a lab experiment designed to study the role of observability for peer effects in the setting of a simple production task. In our experiment, participants in the role of workers engage in a team real-effort task. We vary whether they can observe, or be observed by, one of their co-workers. In contrast to earlier findings from the field, we find no evidence that low-productivity workers perform better when they are observed by high-productivity co-workers. Instead, our results imply that peer effects in our experiment are heterogeneous, with some workers reciprocating a high-productivity co-worker but others taking the opportunity to free ride