Certyfikat jakości 
kształcenia dla WNE

EBCL
WNE Centrum
Egzaminacyjnym EBC*L 

WP(43)191. Gender, beauty and support networks in academia: evidence from a field experiment

Abstrakt

Bibliometric studies show that male academics are more productive than their female counterparts and that the gap cannot be explained in terms of difference in abilities. In this project we wish to verify the hypothesis that this tendency is related to the greater support that men receive from their colleagues (“old boys network”). Towards this end we had e-mails sent by a male or female student asking academics for a minor favour. In Study 1 we asked authors of nearly 300 papers in experimental economics to share the raw data used in their study. We observed no difference in response rate or compliance rate between male and female senders. In Study 2 we sent 2775 e-mails to academics affiliated with prestigious schools from ten different fields , asking to either send us a copy of their recent article or meet the sender supposedly interested in pursuing a PhD program. Once again we manipulated gender of the senders but this time we also varied their physical attractiveness. We found a small but significant difference in the Article Treatment: attractive females’ requests were honoured less often. No such tendency was found in the Meeting Treatment and no general gender effect was observed. Overall, we find very little support for the claim that early-stage male researchers enjoy greater support than their female colleagues.
Michał Krawczyk Magdalena Smyk

WP(42)190. Productivity spillovers in the GVC. The case of Poland and the New EU Member States

Abstrakt

The new EU member states have been experiencing firm internationalization not only through inward foreign direct investment but also through exporting, importation of foreign technology in investment goods and increased use of imported intermediates. We argue that there are important productivity spillovers within the global value chains, i.e. FDI alone does not tell the whole story of the reallocation processes going on in the economies of the NMS. We augment the standard TFP spillover empirical model with modern measures of GVC participation. We show that increased foreign content of exports brings additional productivity gains on top of the ones attributed to exporting. Moreover, we show that in selected cases, participation in the GVC leads to a smaller productivity gap between foreign and domestic firms.
Jan Hagemejer

WP(41)189. Valuing the benefits of improved marine environmental quality under multiple stressors

Abstrakt

Many marine and coastal ecosystems are under increasing pressure from multiple stressors. In the Baltic Sea, these stressors include oil and chemical spills from shipping, nutrient run-off from land and invasive species. All of these pressures have been rising over the recent past. Increasing pressures lead to reductions in environmental quality, which produce negative effects on human well-being. In this paper, the choice experiment method is used to estimate the benefits to people in Estonia resulting from reductions in pressure from multiple stressors in the Baltic.
Mikołaj Czajkowski Heidi Tuhkanen, Evelin Urbel-Piirsalu, Tea Nõmmann, Nick Hanley

WP(40)188. Regional differences in gender wage gaps in Poland

Abstrakt

The paper aims to estimate the adjusted gender wage gaps in Poland and in each of the 16 NUTS2 Polish regions using the new harmonised dataset of wages of individuals in 2010. The results show that the total gender wage gap in Poland, estimated with new dataset, amounts to 15.7% and indicate that the previous estimates based on the Polish Labour Force Survey data are upward biased and the estimates based on the Structure of Wages and Salaries data are downward biased. Moreover, the authors show that part of the differences in wages between men and women in Poland is due to differences in the employment structure. Gender wage gap corrected for the segregation bias decreases to 14.3%. There is significant variation among regions – estimates of corrected gender wage gap vary from 24% in Opolskie to 1% in Swietokrzyskie region. The differences in gender wage gap across regions are mainly due to different employment structure by ownership sector and occupational groups.
Paweł Strawiński Aleksandra Majchrowska

WP(39)187. Cross-Sectional Returns With Volatility Regimes From Diverse Portfolio of Emerging and Developed Equity Indices

Abstrakt

This article aims to extend evaluation of classic multifactor model of Carhart (1997) for the case of global equity indices and to expand analysis performed in Sakowski et. al.(2015). Our intention is to test several modifications of these models to take into account different dynamics of equity excess returns between emerging and developed equity indices. Proposed extensions include volatility regime switching mechanism (using dummy variables and the Markov approach) and the fifth risk factor based on realized volatility of index returns. Moreover, instead of using data for stocks of a particular market (which is a common approach in the literature), we check performance of these models for weekly data of 81 world investable equity indices in the period of 2000-2015. Such approach is proposed to estimate equity risk premium for a single country. Empirical evidence reveals important differences between results for classical models estimated on single stocks (either in international or US-only framework) and models evaluated for equity indices. Additionally, we observe substantial discrepancies between results for developed countries and emerging markets. Finally, using weekly data for the last 15 years we illustrate importance of model risk and data overfitting effects when drawing conclusions upon results of multifactor models.
Paweł Sakowski Robert Ślepaczuk Mateusz Wywiał

WP(38)186. Think not calculate! Implementation of Felix Klein postulates in economic education with CAS software

Abstrakt

For the last two decades, there have been many attempts to broadly introduce the Computer Algebra System (CAS) programs to teach economics. So far, none of these trials have reported significant success. The purpose of this article is to investigate the reasons why this software is still not commonly used tool in teaching economics. Paper is based on interdisciplinary approach. Experience of introducing CAS to teach advanced microeconomics is being confronted with philosophy of science, anthropology, history of mathematics, history of economic thought, education, etc. This leads to coherent new approach to the application of CAS to teach economics using tools of blended learning and m-learning, where the postulates of mathematics teaching reform presented in 1905 by Felix Klein are the core point. One of these postulates is to shift from laborious calculations to presentations of results in the functional form, what allows for the demonstration of complex relationships in simple graphical form. By using this approach, students can devote more time to evaluation of the reality of operation of theoretical models. Introduction of Felix Klein postulates improves significantly the tradeoff between quality and accessibility of this software for students and teachers. To improve the efficiency of using CAS in teaching, this paper presents tools created by the Author. One of those is to use language corpus analysis to isolate the most often appearing MAXIMA commands, what may simplify and accelerate the process of learning the programming language and syntax. Paper presents the Leontief (1935) Input-Output model as an example of using CAS in teaching microeconomics. This model is one of the most striking examples of the inadequacy of the teaching results obtained in relation to the effort of pen-and-paper calculations. Using CAS for this model is a qualitative change both in didactics as well can extend scientific research and theory applications.
Tomasz Kopczewski

WP(37)185. Use and non-use values in an applied bioeconomic model of fisheries and habitat connections

Abstrakt

In addition to indirect support to fisheries, marine habitats also provide non-use benefits that are overlooked in most existing bioeconomic models. Our paper expands a dynamic bioeconomic fisheries model in which the presence of natural habitats not only reduces the cost of fishing, via aggregation effects, but also supplies non-use benefits. The theoretical model is illustrated with the analysis of cold water corals in Norway where two fishing methods are considered – destructive bottom trawl and non-destructive coastal gear. Non-use values of cold water corals in Norway are estimated using a discrete choice experiment. Both the theoretical model and its empirical applications show how non-use values impact upon the optimal fishing practices.
Mikołaj Czajkowski Claire W. Armstrong, Viktoria Kahui, Godwin K. Vondolia, Margrethe Aanesen

WP(36)184. Utilizing the Discrete Choice Experiment Approach for Designing a Socially Efficient Cultural Policy: The case of municipal theaters in Warsaw

Abstrakt

While public support for culture, and performing arts in particular has become a less self-evident privilege all over Europe than in the past, the economic evidence for benefits a society gains from those goods has become essential for both of the following: scientific research in the area of cultural economics and cultural policy. Although the non-market valuation has been employed as a tool for measuring social benefits generated by cultural resources, the budget constraint has not been considered in most studies regarding the performing arts. Due to that constraint, the crucial question that decision-makers have to answer is then not “whether to finance” or “how big the support should be”, but rather “how to allocate scarce resources”. The aim of our study is to investigate socially preferred ways of allocating public resources in the context of the types of performances offered by municipal theaters in Warsaw. The problem investigated is a current issue for local policy-making, but in a broader sense, it illustrates how state-of-the-art stated preference methods could be employed to support cultural policy. We find that inhabitants of Warsaw assign positive value to the broader accessibility of municipal theaters, and their willingness to pay for making the theaters a truly public good (by introducing a program of highly discounted tickets) exceeds the costs of such a policy. However, we also find that the cost-benefit relationship varies across theaters with different types of plays in their repertories. Our results imply a different level of socially efficient support for experimental, drama, children’s and entertainment theaters.
Aleksandra Wiśniewska Mikołaj Czajkowski

WP(35)183. Does the number of discrete choice alternatives matter for respondents’ stated preferences? The case of tap water quality improvements

Abstrakt

Contingent valuation is among the most widely used techniques for studying consumers’ preferences. Nevertheless, whether respondents reveal their true preferences in contingent valuation surveys is still the subject of academic debate. The existing literature indicates that the truthful disclosure of preferences pivots on the number of alternatives presented in a single choice task. On a theoretical basis, the use of a two-alternative task format has long been recommended because of its incentive-compatible properties, which ensure that respondents’ disclosure of their true preferences constitutes their optimal strategy. However, the empirical literature presents nascent evidence that providing more than two choice alternatives may increase the respondents’ likelihood of finding an option that satisfactorily matches their preferences; consequently, a multiple-alternative task format likely enhances the accuracy of preference disclosures. Furthermore, empirical studies often employ multiple alternatives for a single task because of statistical efficiency gains. The lack of consensus about the impact of the number of alternatives on respondents’ truthfulness when stating their preferences in contingent valuation surveys motivates this study. Using data from a discrete choice experiment, we examine whether willingness-to-pay (WTP) estimates depend on the number of alternatives provided for a single choice task. We employ a split-sample design that uses two- and three-alternative formats in a contingent valuation survey of proposed public policies for the improvement of tap water quality (iron and chorine content, hardness) in Milanówek, a town in the Warsaw agglomeration in Poland. Drawing on a generalized mixed logit model with scale heterogeneity, we find no significant differences in the mean WTP values elicited with two- and three-alternative tasks, while the WTP estimates based on three-alternative tasks appear to have relatively lower standard errors compared with two-alternative tasks. This finding indicates that using three or more alternatives per choice task may offer a way to increase efficiency without biasing the results.
Mikołaj Czajkowski Marek Giergiczny Ewa Zawojska

WP(34)182. Selling timber in Poland

Abstrakt

The paper looks at how the foresters try to reconcile sustainable management practices with economic viability of their operations within the legal framework they operate in. In particular, we compare prices received by the State Forest Enterprise in Poland in two types of timber auctions: constrained and unconstrained ones. While the latter allow for higher revenues, the former are maintained for political reasons. The authors verify alternative hypotheses regarding market behaviour of timber buyers. The data from timber auctions in 2011-2012 demonstrate that winning prices are determined by starting prices and by the market power of the State Forest Enterprise (diversified with respect to specific timber varieties), as well as by price expectations. Based on the modelling results the paper makes policy recommendations with respect to the design of timber auctions and – more broadly – with respect to striking a balance between timber and non-timber benefits from the forestry in Poland.
Marek Giergiczny Natalia Nehrebecka Tomasz Żylicz

WP(33)181. Economic Effects of Post-Socialist Constitutions Revisited (nearly) 25 Years from the Outset of Transition

Abstrakt

Post-socialist transition taking place since 1989 in countries of Central and Eastern Europe, as well as later in Central and Southwestern Asia, brought about simultaneous changes of their political and economic systems, requiring the establishment of new constitutional frameworks. In this paper we study the effects of post-socialist constitutional change on economic policy decisions of countries involved in this process. As nearly 25 years have passed from the outset of transition, the data allows to conduct an empirical study based on an econometric model confirming the relevance of several constitutional rules in this respect, e.g. regarding the model of government and constitutional judiciary. Based on the results, recommendations are made for countries, where the transition process has been slow and unsuccessful.
Katarzyna Metelska-Szaniawska

WP(32)180. She Cares and He Earns? The Family Gaps in Poland

Abstrakt

This paper deals with parenthood induced inequalities in the labour market outcomes of men and women in Poland. It extends the existing framework of research by providing a joint analysis of parenthood impact on working hours and wages for men and women for a transition economy. Using propensity score matching and fixed effects estimation this paper reveals that parenthood is associated with longer working hours and greater wages for men and shorter working hours and lower wages for women. The gaps in working hours may be however partially attributed to unobserved differences between parents and childless individuals. For men, unobserved heterogeneity also explains their greater wages. Mothers are however found to receive significantly lower wages even if their unobserved characteristics and self-selection into employment are accounted.
Ewa Cukrowska-Torzewska

WP(31)179. Addressing empirical challenges related to the incentive compatibility of stated preference methods

Abstrakt

An emerging theoretical literature focused on the incentive compatibility of stated preference surveys offers a new lens through which to view extant evidence on external validity, and provides guidance for practitioners. However, critical theoretical assumptions rest on latent respondent beliefs, such as the belief that respondents view surveys as potentially influencing policy (i.e., policy consequentiality), which gives rise to pressing empirical challenges. In this study, we develop a Hybrid Mixed Logit model capable of integrating multiple latent beliefs, and subjective measures of these beliefs, into discrete choice models of stated preferences. Further, we provide a split-sample test of the effects of exogenous information signals related to policy consequentiality. Our results suggest some potential for researchers to induce desired beliefs through simple information signals and, importantly, that latent beliefs and information signals significantly influence elicited willingness to pay.
Mikołaj Czajkowski Aleksandra Wiśniewska Ewa Zawojska Christian A. Vossler, Wiktor Budziński

WP(30)178. Choice experiment assessment of public preferences for forest structural attributes

Abstrakt

The objectives of forest policy have been broadened from tangible products, such as wood and fiber, to ecosystem services. This broadening emphasizes the need to also estimate the value of biodiversity and the social benefits of tourism and recreation. While research on the species’ requirements has a long history, the issue of which habitat humans select to engage in tourism and recreation lags behind. In both cases, a major challenge is to consider the complete range of forest structure from a managed to a natural dynamic. Combining the approach used in landscape research with non-market valuation techniques, the aim of this study is to document human habitat selection for recreational purposes in a gradient of forest naturalness. The results indicate that respondents prefer older stands with vertical layering, irregularly spaced trees and a greater number of tree species. Our study thus indicates that forests that are managed (or left unmanaged) for biodiversity purposes are also likely to be attractive to humans. To conclude, while greater management intensity was associated with higher disutility regardless of the model employed, we do not perceive a risk of conflict between forest management designed to protect biodiversity and management targeting recreational value. Consequently, there is a need for spatially differentiated forest management that discriminates among different functions. The state ownership of all larger Polish forest massifs makes this zoning approach feasible.
Marek Giergiczny Mikołaj Czajkowski Tomasz Żylicz Per Angelstam

WP(29)177. Differences in the Estimates of Gender Wage Gap Over The Life Cycle

Abstrakt

Given theoretical premises, there is some ground to expect the gender wage gap adjusted for individual characteristics to be age specific. We rely on a long panel of data from the German Socio-Economic Panel covering the 1984-2008 period. We employ the DiNardo et al. (1996) technique to disentangle cohort and age effects. Our results indicate that the gender wage gap increases over the lifetime, but decreases with time. This finding runs contrary to the hypothesis that it is during the reproductive age that women's wages relative to men's wages suffer most. We suggest explanations for this pattern.
Joanna Tyrowicz Lucas Augusto van der Velde Irene van Staveren

WP(28)176. Performance of different approaches in international benefit transfer: Insights from a nine country experiment

Abstrakt

This paper investigates the performance of different approaches in international benefit transfer using data from identical and simultaneous contingent valuation surveys on marine water quality in nine European countries. The environmental good is shared by the study countries, but the countries differ substantially in their income levels and geography. We test the performance of three approaches: unit value transfer, unit value transfer with income elasticity adjustment, and function transfer. We find that at least in the case of international benefit transfers (when respondents’ mean incomes vary) unit value transfer with income elasticity adjustment performs the best, both in terms of mean absolute transfer errors and minimum tolerance levels for the equivalence of welfare measures. We argue that this approach should become a standard for quick and easy benefit transfer, and can serve as a baseline for comparisons with more complicated function transfers.
Mikołaj Czajkowski Heini Ahtiainen, Janne Artell, Jürgen Meyerhoff

WP(27)175. Exploring the role of deliberation time in non-selfish behaviour: the Double Response method

Abstrakt

In this paper we introduce an innovative research method called Double Response under which subjects are incentivised to provide a quick, intuitive choice and additionally one based on longer deliberation. We apply the method to a series of simple decision tasks aimed at eliciting subjects’ social preferences (as in Charness and Rabin, 2002). Our method appears to successfully induce very quick responses. We find that although only 9.9% of initial choices are changed after deliberation, 79.4% of subjects change at least one of their choices. Comparing contents of the decisions we observe that time pressure leads to more negative attitude towards another individual’s earnings when they are higher than those of the decision maker. In other words, with deliberation decisions are typically updated towards lesser aversion to disadvantageous inequality (“envy”).
Marta Ewa Sylwestrzak Michał Krawczyk

WP(26)174. "Thou shalt not leech" Are digital pirates conditional cooperators?

Abstrakt

In this project we investigate willingness to share and download cultural content by implementing a novel "piracy game" modelled after standard public good games. Subjects' decisions have real consequence, as they are rewarded with individual "transfer" on a file-sharing service. We find that willingness to share depends positively on the sharing by others. Interestingly, however, this tendency does not seem to be associated with reciprocity or other-regarding social preferences. We employ several measures of sharing - from self-reporting to experimental - and incorporate to the analysis other factors which may explain the autonomous willingness to share, irrespective of the group effects. We find that conditional cooperation in content sharing is fairly prevalent, but unrelated to personality traits, attitude towards risk, attitude towards the other, marginal valuation, as well as socio-demographic characteristics.
Wojciech Hardy Michał Krawczyk Joanna Tyrowicz

WP(25)173. Pushed by the crowd or pulled by the leaders? Peer effects in Pay-What-You-Want

Abstrakt

Literature on charitable giving often finds that seed money matters: the example of a wealthy donor is followed by others (List and Lucking-Riley, 2002). Nearly all relevant theoretical accounts (e.g. that leaders possess superior information on quality of the project) seem to apply to the closely related environment of Pay-What-You-Want mechanisms as well. Yet, as far as we can tell, no empirical study has tested for that until now. To fill this gap, we analyze data from 16 campaigns of BookRage (an equivalent of Humble Bundle, offering bundles of e-books). We make use of the fact that a fixed number of currently highest contributions are always displayed (along with mean contribution and total amount raised). Thus a discontinuity may be expected: contributions that are displayed might directly affect subsequent donors' behavior, in contrast to just slightly lower donations that are only observable as a (small) change in mean contribution. We find that the example of leaders makes no impact on willingness to purchase and amount paid. By contrast, the mean of past contributions has a positive impact on current contribution, yet a negative impact on the probability of contributing.
Michał Krawczyk Anna Kukla-Gryz Joanna Tyrowicz

WP(24)172. Digital piracy and the perception of price fairness

Abstrakt

We focus on the relationship between pricing of cultural goods and willingness to download their unauthorized versions. Building on equity theory we propose that perceiving a price as overly high provides a self-justification for downloading content from unauthorized sources. In a large-scale online experiment on customers of a major e-book store we employ the Bayesian Truth Serum to induce truthful confessions of acquiring content from unauthorized sources. We confirm that self-reported downloading from unauthorized sources is associated with having experienced overpricing. We also relate it to endorsing relatively positive views on the role of file-sharing services and believing that ''pirate's'' motives are relatively principled, while those of abstainers are rather pragmatic.
Michał Krawczyk Anna Kukla-Gryz Joanna Tyrowicz

WP(23)171. Friends or foes? A meta-analysis of the link between "online piracy'" and sales of cultural goods

Abstrakt

Over the past decade or so, the literature has sprung in analyses of the impact the so-called online or digital "piracy'" has on sales. Since theory posits both positive and negative effects are possible, the question remains purely empirical. Consequently, there is a variety of published articles and working papers arguing in both ways, many of which attempt to account for the challenge of providing a reliable and causal effect. The objective of this survey is to review and discuss the accomplishments of the field so far. We also provide a tentative meta-analysis. Despite the multiplicity of measures and methods used we argue that the literature as a whole fails to reject the null hypothesis of no effects on sales.
Wojciech Hardy Michał Krawczyk Joanna Tyrowicz

WP(22)170. In the search for the optimal path to establish a funded pension system

Abstrakt

We propose a politically feasible instrument for a nearly optimal transition from a pay-as-you-go to a funded scheme in a defined contribution pension system. It consists of compensating the transition generations in the form of pension benefits indexation more generous than would have prevailed in a clean DC system. Thus, this instrument allows to smoothen the welfare costs of transition over future generations via some small implicit debt. Our instrument proves robust to a number of parametric and modeling choices.
Marcin Bielecki Joanna Tyrowicz Krzysztof Makarski, Marcin Waniek

WP(21)169. Political (In)Stability of Social Security Reform

Abstrakt

In this paper we consider an economy populated by overlapping generations, who vote on abolishing the funded system and replacing it with the pay-as-you-go scheme (i.e. unprivatizing the pension system). We compare politically stable and politically unstable reforms and show that even if the funded system is overall welfare enhancing, the cohort distribution of benefits along the transition path turns unprivatizing social security politically favorable.
Joanna Tyrowicz Krzysztof Makarski

WP(20)168. Should we pay, and to whom, for biodiversity enhancement in private forests? An empirical study of attitudes towards payments for forest ecosystem services in Poland

Abstrakt

This paper investigates the possibility of forest policy changes in Poland. The main objective is to investigate whether, and to whom, the society would be willing to pay for providing biodiversity enhancement in private forests. The empirical evidence is derived from a stated preference survey conducted on the national level and analyzed using a multinomial logit model (MNL). Our findings show a rather strong potential for the implementation of payments for ecosystem services (PES) in private forests, even though historical and institutional conditions are not favorable. The results also indicate a significant role of environmental attitudes in viewing the national and local governments as those responsible for financing the implementation of changes in private forests. They allow to provide recommendations for planning authorities and decision-makers not only in Poland but also in the other Central and Eastern European countries, where payments for ecosystem services have no long tradition.
Anna Bartczak Katarzyna Metelska-Szaniawska

WP(19)167. Marine trade-offs: comparing the benefits of off-shore wind farms and marine protected areas

Abstrakt

The drive to increase renewable electricity production in many parts of Europe has led to an increasing concentration of location of new sites at sea. This results in a range of environmental impacts which should be taken into account in a benefit-cost analysis of such proposal. In this paper, we use choice modelling to investigate the relative gains and losses from siting new windfarms off the coast of Estonia, relative to the option of creating a new marine protected area. Methodologically, the paper makes a contribution by showing the ability of the latent class mixed logit model to represent both within-and between-class preference heterogeneity, and thus its power to provide a more sophisticated representation of preference heterogeneity than latent class or mixed logit approaches. The paper is also the first to use the latent class mixed logit in willingness-to-pay space for environmental goods.
Mikołaj Czajkowski Aljona Karlõševa, Sulev Nõmmann, Tea Nõmmann, Evelin Urbel-Piirsalu, Wiktor Budziński, Nick Hanley

WP(18)166. Talent workers as entrepreneurs: a new approach to aspirational self-employment

Abstrakt

What is necessary to make entrepreneurship sector successful? It seems like two key factors in this matter are quantity of financial capital and quality of human capital. So far, studies on innovative firms were rather focused on spending on resources, and not on qualification of people who are entering entrepreneurship sector. Using concept of so-called talent workers (Hsieh et al. 2013) we check who is entering self-employment in Poland. Our question is whether people who enter self-employment are more likely to create successful businesses. The analysis is based on the labor force survey panel data for Poland for over a decade between 2001 and 2013. We found that talent workers were more likely to become self-employed in this period. Results are robust on two possibly confounding effects – within sector mobility and productivity of workers before entering self-employment.
Joanna Tyrowicz Zofia Barbara Liberda Magdalena Smyk

WP(17)165. Liberalization of trade flows under TTIP from a small country perspective. The case of Poland

Abstrakt

The empirical ex-ante evaluations of the Transatlantic Trade and Investment Partnership are similar on aggregate but suggest a large heterogeneity of the TTIP impact at the individual country level. We aim to provide a comprehensive evaluation of the possible TTIP effects for the economy of Poland using a computable general equilibrium model. In our simulation scenarios we use the estimates of NTBs that allow us to differentiate the impact of NTBs on trade of Poland, the remaining NMS aggregate, Germany, the largest trading partner of Poland and the rest of EU-15. We show that from a point of view of a small country, where most of international trade is concentrated on exchange with one or a few neighboring trading partners, such as Poland, simultaneous trade liberalization with a third partner will not bring sizeable gains to its economy. We observe US-EU15 trade expansion to be crowding out some of the trade in the most important Polish trading sectors, such as chemicals and motor vehicles. The unfavorable change in the terms of trade makes the gains from trade small while some sectors reduce output by a considerable amount.
Jan Hagemejer

WP(16)164. Inequalities in an OLG economy with heterogeneity within cohorts and pension systems

Abstrakt

While the inequalities of endowments are widely recognized as areas of policy intervention, the dispersion in preferences may also imply inequalities of outcomes. In this paper, we analyze the inequalities in an OLG model with obligatory pension systems. We model both policy relevant pension systems (a defined benefit system -- DB -- and a transition from a DB to a defined contribution system, DC). We introduce within cohort heterogeneity of endowments (individual productivities) and heterogeneity of preferences (preference for leisure and time preference). We introduce two policy instruments, which are widely used: a contribution cap and a minimum pension. In theory these instruments affect both the incentives to work and the incentives to save for the retirement with different strength and via different channels, but the actual effect attributable to these policy instruments cannot be judged in an environment with a single representative agent. We show four main results. First, longevity increases aggregate consumption inequalities substantially in both pension systems, whereas the effect of a pension system reform works to reinforce the consumption inequalities and reduce the wealth inequalities. Second, the contribution cap has negligible effect on inequalities, but the role for minimum pension benefit guarantee is more pronounced. Third, the reduction in inequalities due to minimum pension benefit guarantee is achieved with virtually no effect on capital accumulation. Finally, the minimum pension benefit guarantee addresses mostly the inequalities which stem from differentiated endowments and not those that stem from differentiated preferences.
Marcin Bielecki Joanna Tyrowicz Krzysztof Makarski, Marcin Waniek

WP(15)163. Do pirates play fair? Ethical judgment of unauthorized sports broadcasts

Abstrakt

Ethical norms on the Internet are believed to be more permissive than in the ‘real’ world and this belief often serves as an explanation for the prevalence of the so-called digital “piracy”. In this study we provide evidence from a vignette experiment that contradicts this claim. Analyzing the case of sports broadcast, we compare explicitly the ethical judgment of legal and illegal sharing in the offline and online context. We find that the norms concerning legality, availability of alternatives and deriving material benefits from sharing content do not differ substantially between the virtual and real worlds. We also test explicitly for the role of legal awareness and find that emphasizing what is prohibited (copyright infringement) is less effective than focusing on what is permitted (fair use) in reducing the disparity between legal and ethical norms.
Michał Krawczyk Joanna Tyrowicz Anna Kukla-Gryz Wojciech Hardy

WP(14)162. What is the Causal Effect of Knowledge on Preferences?

Abstrakt

We use a novel field experiment which jointly tests two implicit assumptions of updating models in a joint framework: that new information leads to new knowledge and that new knowledge can affect economic decisions. In the experiment, we elicit subjects’ prior knowledge state about a good’s attributes, exogenously vary how much new information about good attributes we provide to subjects, elicit subjects’ valuation for the good, and elicit posterior knowledge states about the same good attributes. Testing for changes in knowledge jointly with changes in preferences allows us to horserace updating models more completely than previous studies since we observe ex ante and ex post knowledge states. Our results are consistent with a model of incomplete learning, fatigue and either confirmation bias or costly search coupled with unbiased priors.
Mikołaj Czajkowski Jacob LaRiviere, Nick Hanley, Katherine Simpson

WP(13)161. The effects of emotions on preferences and choices for public goods

Abstrakt

This paper tests whether changes in “incidental emotions” lead to changes in economic choices. Incidental emotions are experienced at the time of an economic decision but are not part of the payoff from a particular choice. As such, the standard economic model predicts that incidental emotions should not affect behavior, yet many papers in the behavioral science and psychology literatures find evidence of such effects. In this paper, we used a standard procedure to induce different incidental emotional states in respondents, and then carried out a choice experiment on changes to an environmental good (beach quality). We estimated preferences for this environmental good and willingness to pay for changes in this good, and tested whether these were dependent on the particular emotional state induced. We also tested whether choices became more or less random when emotional states were induced, based on the notion of randomness in a standard random utility model. Contrary to our a-priori hypothesis we found no significant evidence of treatment effects, implying that economists need not worry about the effects of variations in incidental emotions on preferences and the randomness of choice, even when there is measured (induced) variation in these emotions.
Mikołaj Czajkowski Christopher Boyce, Nick Hanley, Charles Noussair, Michael Townsend, Steve Tucker

WP(12)160. The Individual Travel Cost Method with Consumer-Specific Values of Travel Time Savings

Abstrakt

The treatment of the opportunity cost of travel time in travel cost models has been an area of research interest for many decades. This analysis develops a methodology to combine the travel distance and travel time data with respondent-specific estimates of the value of travel time savings. The individual travel time values are elicited with the use of discrete choice stated preference methods. The travel time valuation procedure is integrated into the valuation exercise to create a two equation structural model of site valuation. Since the travel time equation of the structural model incorporates individual preference heterogeneity full structural model provides a travel cost site demand model based upon individualized values of time. The methodology is illustrated in a study of recreational birdwatching, more specifically, visits to a stork village in Poland. We show that the usual practice of basing respondents’ value of travel time savings on their wage rate is largely unfounded.
Mikołaj Czajkowski Marek Giergiczny Jakub Kronenberg, Jeffrey Englin

WP(11)159. Productivity and Inequality Effects of Rapid Labor Reallocation – Insights from a Meta-Analysis of Studies on Transition

Abstrakt

From a theoretical perspective the link between the speed and scope of rapid labor reallocation and productivity growth or inequalities remains unclear. Do reallocations with more flows tend to produce higher productivity growth? Does such link appear at the expense of higher inequalities? We explore the rich evidence from earlier studies on worker flows in the period of massive and rapid labor reallocation, i.e. the economic transition from a centrally planned to a market-oriented economy in Central and Eastern Europe. We apply the tools typical for a meta-analysis to verify the empirical regularities between labor flows and productivity growth as well as inequalities. We collected over 450 estimates of job flows from the literature and use these inputs to estimate the short-run and long-run relationship between job flows, labor productivity and inequalities. Our findings suggest relatively weak and short term links with productivity for job destruction/separations. On the other hand, data reveal a strong pattern for inequalities more churning during reallocation is associated with a permanent level efect towards increased Gini indexes.
Lucas Augusto van der Velde Joanna Tyrowicz Jan Svejnar

WP(10)158. Crowding (out) the retirees? RDD application to raising effective retirement age in Poland

Abstrakt

As of 2007 increased labor force participation of the elderly has been observed in Poland. In 2009 a reform in the eligibility criteria narrowed the scope of early retirement opportunities for majority of the occupations. While labor force participation in the directly affected cohorts continued to grow, but an increase already prior to the reform hints that other factors may have been at play as well. The objective of this paper is to isolate and evaluate the causal ef-fect of the changes in eligibility criteria on labor force participation and exit to retirement of the affected cohorts. We rely on Polish Labor Force Survey and employ regression disconti-nuity design to evaluate the change in participation subsequent to the eligibility reform among the treated cohorts. We find a statistically significant, but economically small discontinuity at the timing of the reform. The placebo test shows no similar effects in earlier or later quarters. Yet, the pure treatment effects are insignificant in vast majority of the specification. Our con-clusions are thus as follows: the changes in the eligibility criteria were not instrumental in fostering the participation rates among the affected cohort, i.e. the immediate contribution to increased labor force participation of these cohorts is not economically large.
Joanna Tyrowicz Paweł Strzelecki

WP(9)157. Occupational structure in the Polish territories at the turn of the 20th (1895-1900) century

Abstrakt

Authors present the occupational structure of Polish lands at the turn of 20th century on the basis of censuses carried out in Germany (1895), Russia (1897) and Austria (1900). Our research provides corrections to the errors of the censuses, to a considerable extent. As a result, we present an occupational structure that allows a more complete the picture of the economic situation in the Polish territories at the end of the 19th century. The conducted research has created an opportunity to partially verify the assumption, which is common in Polish economical historiography, that a technological turning point and an industrial revolution occurred in Polish lands already in the 1870s and 1880s. Revised census data demonstrated that the extent of industrialization in Polish lands was still very limited in 1900.
Piotr Koryś Maciej Tymiński

WP(8)156. Re-examining empirical evidence on contingent valuation - Importance of incentive compatibility

Abstrakt

The contingent valuation (CV) method uses respondents’ stated choices made in hypothetical situations to infer their preferences for environmental public goods. It enables the general public’s preferences to be stated in monetary terms and hence to estimate the economic value of a change in the quantity or quality of the goods. However, a key question remains regarding CV’s validity: do the value estimates obtained from a CV study reflect respondents’ true preferences and their maximum willingness to pay? Numerous empirical investigations have tested CV’s validity, but overall conclusions are mixed. We critically re-evaluate this evidence considering the issue of incentive compatibility in contingent valuation settings for which the necessary conditions were recently proposed by Carson and Groves (2007). Our analysis shows that once incentive compatibility conditions are considered, the available studies consistently show that the CV method is valid. As a result, we argue that contingent scenarios and elicitation formats must be made incentive compatible in order to observe consumers’ true preferences.
Mikołaj Czajkowski Ewa Zawojska

WP(7)155. Is the income elasticity of the willingness to pay for pollution control constant?

Abstrakt

This paper explores both theoretically and empirically whether or not the willingness to pay (WTP) for pollution control varies with income. Our model indicates that the income elasticity of the marginal WTP for pollution reduction is only constant under very restrictive conditions, which are not necessary for an environmental Kuznets curve relationship between pollution and income. Our empirical analysis tests the null hypothesis that the elasticity of the WTP for pollution control with respect to income is constant, employing a multi-country contingent valuation study of eutrophication reduction in the Baltic Sea. Our findings reject this hypothesis, and estimate an income elasticity of the WTP for eutrophication control of 0.1 - 0.2 for low-income respondents and 0.6 - 0.7 for high-income respondents. Thus, our empirical results suggest that the elasticity is not constant and always less than one.
Mikołaj Czajkowski Edward S. Barbier, Nick Hanley

WP(6)154. Spatial heterogeneity of willingness to pay for forest management

Abstrakt

The paper investigates spatial heterogeneity of the public’s preferences for the implementation of a new country-wide forest management and protection program in Poland. Spatial econometric methods and high resolution geographical information system (GIS) data related to forest characteristics are used to explain individual-specific willingness to pay (WTP) values, derived from a discrete choice experiment (DCE) study. We find that respondents’ WTP is higher the closer they live to their nearest forest, and the scarcer forests are in the area where they live. Interestingly, the more highly ecologically valuable forests in respondents’ area, the more they prefer extending areas of national forest protection. In addition, we investigate spatial patterns in individual-specific WTP scores and in latent class membership probabilities, finding that preferences are indeed spatially clustered. We argue that this clustering should be taken into account in both benefits analysis and policy-making.
Mikołaj Czajkowski Marek Giergiczny Wiktor Budziński, Danny Campbell, Nick Hanley

WP(5)153. Why do users choose Open Source software? Analysis of the network effect

Abstrakt

This article analyses the phenomenon of using the Open Source software. Its aim is to verify the existence of a positive direct network effect that characterizes using of the Open Source software. The multivariate probit model is used to extract factors motivating users to the usage of the Open Source software. Special attention is paid to demographic characteristics of users, as well as to the impact of users' acquaintances, such as family, work and school on using the Open Source software. The results of the conducted analysis confirm our research. 
Dorota Celińska-Kopczyńska Mirosława Lasek

WP(4)152. Women in transition and today: what do they want, realize, and experience in the labor market?

Abstrakt

We investigate how women’s attitude and realization of choices towards equal participation in the labor market changes with age, and how these patterns differ between generations in transition and Western economies. As transition countries experienced a drop in employment rates regardless of gender, we study the relative change in the position of women, compared to similarly endowed men. We find that disentangling age, time, and cohort effects is necessary to appropriately assess women’s progress on labor markets in transition. The results indicate that in Western Europe countries women born later have much more equal position on the labor market as compared to older birth cohorts, but this is not the case in transition economies.
Karolina Goraus-Tańska Magdalena Smyk Lucas Augusto van der Velde

WP(3)151. Bivariate GARCH models for single asset returns

Abstrakt

In this paper an alternative approach to modelling and forecasting single asset returns volatility is presented. A new, bivariate, flexible framework, which may be considered as a development of single-equation ARCH-type models, is proposed. This approach focuses on joint distribution of returns and observed volatility, measured by Garman-Klass variance estimator, and it enables to examine simultaneous dependencies between them. Proposed models are compared with benchmark GARCH and range-based GARCH (RGARCH) models in terms of prediction accuracy. All models are estimated with maximum likelihood method, using time series of EUR/PLN spot rate quotations and WIG20 index. Results are very encouraging especially for foreasting Value-at-Risk. Bivariate models achieved lesser rates of VaR exception, as well as lower coverage tests statistics, without being more conservative than its single-equation counterparts, as their forecasts errors measures are rather similar.
Tomasz Skoczylas

WP(2)150. Inequality of opportunity in Europe before and after the Great Recession

Abstrakt

This paper is a follow-up to Marrero and Rodríguez (2012), who estimated the inequality of opportunity (IO) in Europe in 2005. We use the EU-SILC 2005 and 2011 databases to compare the IO in 23 European countries before and after the Great Recession. The parametric procedure of Ferreira and Gignoux (2011) is used to measure IO. Results show that between 2004 and 2010 both absolute and relative IO increased in Belgium and Slovakia, while decreased in Portugal and Lithuania. In addition, relative IO rose in Austria, Hungary and Greece.
Michał Brzeziński

WP(1)149. Are we all overconfident in the long run? Evidence from one million marathon participants

Abstrakt

In this project we sought to contribute to extant literature on overconfidence by identifying it in a large, heterogeneous sample making familiar, repeated choices in a natural environment which provides direct feedback. In Study 1 we elicited predictions of own finishing time among participants of the 2012 Warsaw Marathon. Their prediction errors turned out to be very highly correlated with the change in pace over the course of the run. In Study 2 we thus took this change in pace as a proxy for self-confidence and used existing field data of around one million participants. Both studies indicate that males as well as youngest and oldest participants tend to be more confident. In Study 2 we are also able to investigate national and cultural dimensions, confirming previously reported findings of relative overconfidence in Asians and providing some novel results, i.a. that relatively conservative societies tend to be more self-confident.
Michał Krawczyk Maciej Wilamowski

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