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    30394 research outputs found

    Epistemic Capital and Two-Trap Growth in the AI Era

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    Two-Way Clustering with Non-Exchangeable Data

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    Inference procedures for dyadic data based on two-way clustering rely on the data being exchangeable and dissociated. In particular, observations must be independent if they have no index in common. In an effort to relax this we consider, instead, data where Yij and Ypq can be dependent for all index pairs, with the dependence vanishing as the distance between the indices grows large. We establish limit theory for the sample mean and propose analytical and bootstrap procedures to perform inference

    Institutional Design For Environmental Acts

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    This paper develops a model of niche lobbying in which interest groups endogenously specialize in the acquisition of distinct types of policy-relevant information. Contrary to the view that niche strategies are chosen to soften competition and secure autonomy, we show that specialization arises as a self-enforcing equilibrium even though groups would prefer to compete over the same informational dimensions. The mechanism is demand-driven: when information acquisition is private and nonverifiable, the decision-maker’s inference from silence intensifies informational pressure on specialized groups, increasing the burden of information acquisition. We discuss the implications of these results for interest groups influence in climate and biodiversity policy

    Judging Social Priority and the Marginal Utility of Income Among Individuals

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    Weighted benefit-cost analysis is receiving increased attention as a method to incorporate concerns about the distribution of policy effects across individuals. Weights are intended to reflect interpersonal differences in the effect of income on wellbeing (the marginal utility of income) and the social value of improving the wellbeing of different individuals. Lacking an objective method for comparing differences or levels of wellbeing between individuals, multiple approaches to estimating how the marginal utility of income depends on income or other factors have been developed, but each of these requires strong assumptions that are not always recognized. This suggests that weights must be chosen judgmentally. Holding income constant, weights are likely to be smaller for older people, due to shorter remaining life expectancy and other factors

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