How to hire helpers? Evidence from a field experiment

How to hire voluntary helpers? We shed new light on this question by reporting a field experiment in which we invited 2859 students to help at the ‘ESA Europe 2012’ conference. Invitation emails varied non-monetary and monetary incentives to convince subjects to offer help. Students could apply to help at the conference and, if so, also specify the working time they wanted to provide. Just asking subjects to volunteer or offering them a certificate turned out to be significantly more motivating than mentioning that the regular conference fee would be waived for helpers. By means of an online-survey experiment, we find that intrinsic motivation to help is likely to have been crowded out by mentioning the waived fee. Increasing monetary incentives by varying hourly wages of 1, 5, and 10 Euros shows positive effects on the number of applications and on the working time offered. However, when comparing these results with treatments without any monetary compensation, the number of applications could not be increased by offering money and may even be reduced.     

Unwrapping some euro area growth puzzles: Factor substitution, productivity and unemployment

In this paper, we estimate a long run supply-side system incorporating a CES production function with time-varying factor-augmenting technical progress for the euro area over the period 1970–2005. We find that the elasticity of substitution lies below unity at 0.7, that labor-augmenting technical progress is dominant in the long run while capital-augmenting technical progress plays an important role in the interim period. Importantly, we also find evidence of a structural break in the pattern of biased technical progress towards the end of the 1990s. Our results help to solve two puzzles in Europe’s recent growth experience which differ markedly from the US experience. The first is related to the effects of the IT boom in the 1990s on productivity growth in Europe. The second puzzle concerns the changes in the “Okun’s law” relationship, linking growth to the reduction of unemployment, which are observable in Europe since the late 1990s.     

Consumer laundry practices in Germany

Sustainability is a guiding principle for a responsible, future‐oriented 21st century lifestyle and this already begins in private households with the daily household tasks. Approximately 25% of an average household's electricity consumption is required to do the laundry and dishwashing – 5% alone is for washing clothes with a corresponding energy consumption of 6 billion kilowatt hours. In addition, 600 000 tonnes of detergent and 330 million cubic metres of water are used for textile care in Germany. These figures provide the rationale for the scientific study of current practices of using washing machines and for a resulting estimate of the latent energy‐saving potential in German households. In the context of the in‐home study presented here, 236 private households throughout Germany were studied with respect to their washing practices and existing knowledge about topics on the sustainable, energy‐saving use of their washing machines. Overall, across all households 2867 wash cycles were individually recorded and subsequently analysed over a 4‐week period. The results of this study show that washing machines tend to be underloaded, and therefore maximum loading of the machines could lead to a reduction of wash cycles per household. With respect to detergent dosage, it was determined that the consumer does not adjust the dosage to the textile type, load size, soil level and/or water hardness, and this can lead to under‐ or overdosing depending on prevailing conditions. Finally, the selection of the wash temperature showed a 90°C/95°C programme was only chosen in 2.3% of all recorded wash cycles, however, every fourth cycle was completed at 60°C. Therefore, adjusting the load size and detergent dosage as well as selecting the right wash temperature are key themes to be taken into account in future consumer communication about energy‐saving households.     

Modeling the diffusion of general purpose technologies in an evolutionary multi-sector framework

General purpose technologies (GPTs) are characterized by their pervasive use in the economy. The introduction of a new GPT (product innovation) as well as increasing productivity within a GPT-sector (as a consequence of process innovations) affect the economy in several ways. First, a new GPT offers the opportunity to produce goods by means of cheaper processes; secondly, technical change within the GPT sector influences productivity gains in related sectors. Also social consequences such as changing wage share, technical unemployment and transitional wage inequality can be observed. Finally, the emergence of a GPT often coincides with output decline, preceding economic growth. This paper introduces a multi-sector diffusion model to study these effects by combining classical economics and replicator-dynamics. Empirical evidence is given by the information and communication technology sector in Denmark and its impact on the economic structure from 1966 to 2007.     

Honesty in tournaments

We apply the die rolling experiment of Fischbacher and Föllmi-Heusi (2013) to a two-player tournament incentive scheme. Our treatments vary the prize spread. The data highlights that honesty is more pronounced when the prize spread is small.     

Optimal Designs for Asymmetric Linear Paired Comparisons with a Profile Strength Constraint

Within the linear model framework the problem of determining optimal designs for paired comparisons of alternatives which are described by a set of discrete attributes is considered under the constraint that the alternatives in a pair are only allowed to differ with regard to a certain number of attributes. Whereas in previous treatments of this problem it was assumed that all attributes possess the same number of levels, here the general asymmetric case is discussed. We provide a characterization of optimal designs and demonstrate how this can be used to derive a solution of the design problem for many situations of interest.     

The introduction of the Euro and its effects on portfolio decisions

Examining investment behavior related to the Euro introduction, we address the relevance of different investment determinants. With the advent of the currency union two potential sources of portfolio reallocation can be distinguished: First, the diminishment of exchange rate risk and transaction costs within the EMU. Second, the increase of correlation of EMU returns so that diversification benefits decreased. We test for structural breaks in the holdings of German investors and estimate a market model to account for the two effects. A significant decrease in national and an increase in EMU and rest-of-the-world investments can be observed. Comparing the observed holdings with benchmark portfolios, we find that investment home bias has diminished since the Euro introduction.     

Assessing governance of biosphere reserves in Central Europe

The biosphere reserve (BR) concept, developed within UNESCO's Man and the Biosphere (MAB) Programme, represents a hallmark in seeking to reconcile conservation and sustainable use of biodiversity. The MAB Programme functioning mechanisms leave the responsibility for the translation of its BR objectives to the management authorities of the participating countries. While a shift to broad social and livelihood perspectives is emerging in the BR Programme, reflecting contemporary requirements for the sustainable management of larger territories including protected areas, it suffers from implementation deficits at the local level.     

Attitudes towards capitalism in 34 countries on five continents

The author commissioned a survey on the image of capitalism in 34 countries. In only six of these countries – led by Poland and the United States – do pro-capitalist attitudes dominate. Although approval of capitalism increases when the word ‘capitalism’ is omitted (and instead only described), even then a positive attitude dominates in only seven of 34 countries. The most frequently mentioned criticisms of capitalism are that capitalism is dominated by the rich and that capitalism leads to growing inequality. Respondents with higher incomes and higher levels of education, men, and those who classified themselves as being on the right of the political spectrum are less anti-capitalist or are more pro-capitalist than the population at large in most countries. In 33 countries, anti-capitalists tend to be more conspiracy-minded than pro-capitalists.