Economics
Hungary's convergence to the developed western economies have been much slower than initially expected. Applying the FOI model, this study investigates whether there were any changes in the convergence process during the second decade of…
The classic first-order approach (FOA) relaxes the principal-agent problem by replacing the incentive compatibility (IC) constraint with its first-order condition. We show that FOA is not a valid relaxation when the support of the outcome…
Deviations from Bayesian updating are traditionally categorized as biases, errors, or fallacies, thus implying their inherent ``sub-optimality.'' We offer a more nuanced view. We demonstrate that, in learning problems with misspecified…
This paper examines optimal risk sharing for empirically realistic risk attitudes, providing results on Pareto optimality, competitive equilibria, utility frontiers, and the first and second theorems of welfare. Contrary to common…
This work outlines the modeling steps for developing a tool aimed at supporting policymakers in guiding policies toward more sustainable wheat production. In the agricultural sector,policies affect a highly diverse set of farms, which…
This paper examines the impact of temperature shocks on European Parliament elections. We combine high-resolution climate data with results from parliamentary elections between 1989 and 2019, aggregated at the NUTS-2 regional level.…
Equity markets have long been regarded as unpredictable, with intraday price movements treated as stochastic noise. This study challenges that view by introducing the Extended Samuelson Model (ESM), a natural science-based framework that…
We study information disclosure in competitive markets with adverse selection. Sellers privately observe product quality, with higher quality entailing higher production costs, while buyers trade at the market-clearing price after observing…
Previous research indicates that zero tillage technology offers a profitable alternative to crop residue burning, with significant potential to reduce agricultural emissions and contribute to improvements in air quality and public health.…
Ensuring efficiency and envy-freeness in allocating indivisible goods without money often requires randomization. However, existing combinatorial assignment mechanisms (for applications such as course allocation, food banks, and refugee…
We build on theoretical results from the mechanism design literature to analyze empirical models of second-degree price discrimination (2PD). We show that for a random-coefficients discrete choice ("BLP") model to be suitable for studying…
This paper studies the partial identification of treatment effects in Instrumental Variables (IV) settings with binary outcomes under violations of independence. I derive the identified sets for the treatment parameters of interest in the…
The rapid rise of e-commerce has transformed consumer behavior, prompting questions about how online adoption influences offline shopping. We examine whether consumers who adopt a retailer's online shopping channels become more…
In this paper, we develop a unified approach to study partial identification of a finite-dimensional parameter defined by a general moment model with incomplete data. We establish a novel characterization of the identified set for the true…
A novel approach to Forecast Error Variance Decompositions (FEVD) in nonlinear Structural Vector Autoregressive models with Gaussian innovations is proposed, called the Hermite FEVD (HFEVD). This method employs a Hermite polynomial…
This paper analyzes optimal insurance design when the insurer internalizes the effect of coverage on third-party service prices. A monopolistic insurer contracts with risk-averse agents who have sequential two-dimensional private…
In settings like vaccination registries, individuals act after observing others, and the resulting public records can expose private information. We study privacy-preserving sequential learning, where agents add endogenous noise to their…
This paper introduces the Voting with Random Proposers (VRP) procedure to address the challenges of agenda manipulation in voting. In each round of VRP, a randomly selected proposer suggests an alternative that is voted on against the…
What role do non-elected bureaucrats play when elections provide imperfect accountability and create incentives for pandering? We develop a model where politicians and bureaucrats interact to implement policy. Both can either be good,…
I study how to regulate firms' access to consumer data when a regulator faces non-Bayesian uncertainty about how firms will exploit the consumer's information to segment the market and set prices. I fully characterize all worst-case optimal…