Marko Tervio

Helsinki School of Economics
PL 1210
00101 Helsinki


NBER Working Papers and Publications

November 2008Self-Esteem, Moral Capital, and Wrongdoing
with Ernesto Dal Bó: w14508
We present an infinite-horizon model of moral standards where self-esteem and unconscious drives play key roles. In the model, an individual receives random temptations (such as bribe offers) and must decide which to resist. Individual actions depend both on conscious intent and a type reflecting unconscious drives. Temptations yield consumption value, but keeping a good self-image (a high belief of being the type of person that resists) yields self-esteem. We identify conditions for individuals to build an introspective reputation for goodness ("moral capital") and for good actions to lead to a stronger disposition to do good. Bad actions destroy moral capital and lock-in further wrongdoing. Economic shocks that result in higher temptations have persistent effects on wrongdoing that fade ...

Published: SELF-ESTEEM, MORAL CAPITAL, AND WRONGDOING Ernesto Dal Bó1, Marko Terviö2 Article first published online: 3 JUN 2013 DOI: 10.1111/jeea.12012 © 2013 by the European Economic Association Issue Journal of the European Economic Association Journal of the European Economic Association Themed Issue: Social Norms: Theory and Evidence from Laboratory and Field Volume 11, Issue 3, pages 599–663, June 2013 citation courtesy of

June 2000Does Trade Raise Income? Evidence from the Twentieth Century
with Douglas A. Irwin: w7745
Efforts to estimate the effects of international trade on a country's real income have been hampered by the failure to account for the endogeneity of trade. Frankel and Romer recently use a country's geographic attributes - notably its distance from potential trading partners - as an instrument to identify the effects of trade on income in 1985. Using data from the pre- World War I, the interwar, and the post-war periods, this paper finds that the Frankel-Romer result is robust to different time periods, i.e., that instrumenting for trade with geographic characteristics raises the estimated positive effect of trade on income by a substantial margin and, in most of our cases, the precision of those estimates. These results suggest that the downward bias of OLS estimates is systematic an...

Published: Irwin, Douglas A. and Marko Terviö. "Does trade raise income?: Evidence from the twentieth century." Journal of International Economics 58, 1 (October 2002): 1-18. citation courtesy of

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