Pre-production Papers

The following papers, listed alphabetically by the first author's last name, have been accepted for publication in JEEA, and can be downloaded in in the EEA membership log in area. 

27 November 2023

Nastiness in Groups

Michal Bauer
, Jana Cahlíková
, Dagmara Celik Katreniak, 
Julie Chytilová
, Lubomír Cingl, Tomáš Želinský

This paper provides evidence showing that people are more prone to engage in nasty behavior, malevolently causing ￿nancial harm to other people at own costs, when they make decisions in a group context rather than when making choices individually on their own. We establish this behavioral regularity in a series of large-scale experiments among university students, adolescents, and nationally representative samples of adults – more than ten thousand subjects in total.

23 November 2023

Rationality and Zero Risk

Itzhak Gilboa, 
Stefania Minardi
, Fan Wang

We adopt a definition of “rationality” as robustness to analysis: a mode of behavior is rational for a decision maker if she feels comfortable with it once it has been analyzed and explained to her. With this definition in mind, is it irrational to violate continuity axioms in one’s stated preferences? Specifically, does it make sense to avoid any positive probability of a negative outcome, not matter how small? Or, if a decision maker states such a “zero risk” policy, does she mean what she says? We propose to study this question axiomatically, asking which modes of behavior correspond to such statements.

30 November 2023

Reconstructing Income Inequality in Italy: New Evidence and Tax System Implications from Distributional National Accounts

Demetrio Guzzardi, Elisa Palagi, Andrea Roventini, Alessandro Santoro

This work reconstructs novel series on income distribution in Italy combining survey data, tax data and National Accounts both at the national and regional levels, and it analyzes the overall progressivity of the tax system. Our new Distributional National Accounts allow to correct for remarkable misreporting of capital income in surveys, to provide more accurate estimates of consumption, and to better account for the role of informal economy. Our fresh estimates show higher income concentration at the top 1% and 0.1% with respect to previous studies in order of 1.5 percentage points.

13 October 2023

Risk Gravity

Luciana Juvenal, Paulo Santos Monteiro

We consider the canonical trade model with heterogeneous firms, love for variety and trade costs, and integrate it in the consumption CAPM model. This yields a structural gravity equation that includes an additional factor related to risk premia. Empirical evidence based on firm-level data confirms the importance of cross-sectional heterogeneity in risk and time-varying risk premia to shape bilateral trade flows.