The Behavioral and Experimental Economics group has an influential position in this field in the Netherlands and Europe. CREED, the Amsterdam-based group, focuses particularly on three main projects: economics of political decision making; bounded rationality and institutions and experimental economics. The research of the Rotterdam-based group focuses on two broad themes: decision under risk and uncertainty and intertemporal choice.
- Markiewicz, A.P. & K.L. Lansing,
- The Economic Journal, forthcoming
We introduce permanently-shifting income shares into a growth model with workers and capital owners. The model exactly replicates the U.S. time paths of the top quintile income share, capital’s share of income, and key macroeconomic variables from 1970 to 2014. Welfare effects depend on changes in the time pattern of agents’ consumption relative to a counterfactual scenario that holds income shares and the transfer-output ratio constant. Short-run declines in workers’ consumption are only partially offset by longer-term gains from higher transfers and more capital per worker. The baseline simulation delivers large welfare gains for capital owners and significant welfare losses for workers.
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