NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

NBER Publications by Federico Weinschelbaum

Contact and additional information for this authorAll NBER papers and publicationsNBER Working Papers onlyInformation about this author at RePEc

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October 2016Crime and Durable Goods
with Sebastian Galiani, Laura Jaitman: w22788
Crime and the durability of goods are strongly connected issues. However, surprisingly, they have been studied separately. This paper explores the relationship between the production of durable goods and crime from a theoretical perspective and draws important conclusions for both topics. Crime affects the consumer and producer surplus and thus the behavior of consumers, firms, the market equilibrium, and, in turn, the social optimum. Lower durability of goods reduces the incentive to steal those goods, thus reducing crime. When crime is included in the standard framework of durable goods, even without considering the negative externalities of crime, perfect competition does not provide the optimal durability level. When considering different stealing technologies, perfect competition eith...
June 2007Choosing Agents and Monitoring Consumption: A Note on Wealth as a Corruption-Controlling Device
with Rafael Di Tella: w13163
There are a large number of cases where corruption has been discovered investigating levels of consumption that appear to be hard to justify. Yet, in the standard moral hazard model withholding of effort by the agent is not observable to the principal. We argue that this assumption has to be revised in applications that study corruption. The informativeness of an agent's level of consumption depends on his legal income and initial level of wealth, as conspicuous consumption by wealthy agents leads to little updating of the principal's belief about their honesty. This introduces a tendency to prefer poor agents as they are easier to monitor. More generally, we describe the basic problem of choosing agents and monitoring consumption with the aim of reducing corruption, and discuss features o...

Published: RafaelDi Tella & Federico Weinschelbaum, 2008. "Choosing agents and monitoring consumption: a note on wealth as a corruption-controlling device," Economic Journal, Royal Economic Society, vol. 118(532), pages 1552-1571, October. citation courtesy of

Contact and additional information for this authorAll NBER papers and publicationsNBER Working Papers onlyInformation about this author at RePEc

 
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