Static and dynamic underinvestment: An experimental investigation
Abstract
In this paper, we analyze a stylized version of an environment with public goods, dynamic linkages, and legislative bargaining. Our theoretical framework studies the provision of a durable public good as a modified two-period version of Battaglini et al. (2012). The experimental design allows us to disentangle inefficiencies that would result in a one-shot world (static inefficiencies) from additional inefficiencies that emerge in an environment...
Paper Details
Title
Static and dynamic underinvestment: An experimental investigation
Published Date
Nov 1, 2016
Journal
Volume
143
Pages
125 - 141
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