A Digest of CERGE-EI Research and Events

Located in Prague, CERGE-EI is dedicated to advancing the frontiers of economic research and graduate education. Chartered by the State of New York, CERGE-EI is a joint workplace of Charles University in Prague and the Czech Academy of Sciences, with the support of numerous donors.

Selected Journal Articles

Trusting Former Rebels: An Experimental Approach to Understanding Reintegration after Civil War

Michal Bauer, Nathan Fiala, and Ian Levely

Economic Journal forthcoming

Warfare, despite its many negative legacies, can elevate local cooperation and civic engagement. This experimental research shows that former child soldiers in the Lord’s Resistance Army are more engaged with their communities than their peers. The study also finds no evidence of mistrust or discrimination against them, providing reason for cautious optimism about the prospects for reintegrating child soldiers. Read more

Tough Love for Lazy Kids: Dynamic Insurance and Equal Bequests

Ctirad Slavik and Kevin Wiseman

Review of Economic Dynamics 27(1): 64–80

Slavik and Wiseman develop a dynamic insurance model to analyze the differences between types of intergenerational transfers. Parents use gifts to children early in life but bequests later, and as insurance against income shocks. The value of transfers is intended to motivate rather than spoil. While gifts tend to be compensatory, bequests are usually divided equally regardless of children's income levels. Read more

Political Cycles and Corruption in Russian Regions

Oleg Sidorkin and Dmitriy Vorobyev

European Journal of Political Economy forthcoming

Are corruption levels among appointed officials affected by the timing of political cycles? Evidence from across Russia links perceptions of corruption intensity with a governor’s chances of remaining in office. If a renewed term is unlikely, the official will use the remaining time in office to accumulate wealth. The findings offer scope to improve the effectiveness of anti-corruption drives. Read more

Inefficient Rushes in Auction

Angel Hernando-Veciana and Fabio Michelucci

Theoretical Economics  13(1): 273–306

Open ascending auctions have been held to preserve first-best outcomes and have, therefore, been preferred for privatizations, public tenders and takeovers. In a scenario involving an incumbent, however, they are prone to rushes that undermine efficiency. The authors propose a two-round auction to correct rush inefficiencies and preserve the positive characteristics of the open ascending auction. Read more

Selected Working Papers

Financing Education Abroad: A Developing Country Perspective

Gega Todua

Developing countries increasingly offer financial aid for university education abroad. Todua develops a new dataset to compare the aid programs on offer. He finds that high-ability students will have access to scholarships for graduate or post-graduate study and will be required to return. Students whose abilities are expected to be lower will have access to loans but will not be obligated to return. Read more

Not All Silver Lining? The Great Road to Recession and Road Traffic Accidents

Paola Bertoli, Veronica Grembi and Judit Vall Castello

Can economic austerity have positive health benefits? Using a dataset from 2004 to 2011, the authors find a 12% decrease in road traffic accidents in parts of Spain most affected by the 2008 economic crisis. While there was a decrease in the probability of death or serious injury, drivers involved were more likely to be under the influence of drugs or alcohol. The findings were most marked in rural areas. Read more

Decision-Making in the Household and Material Deprivation

Sergii Maksymovych

Maksymovych studies the links between decision-making roles within households and living conditions across Europe. He finds that an even balance in decision-making power between the sexes leads to better living conditions. Conditions are worse where either gender dominates the decision-making. The effect is particularly strong when decision-making is dominated by the female partner. Read more

Wage Risk and the Skill Premium

Ctirad Slavik and Hakki Yazici

Slavik and Yazici analyze the correlation between the rising skills premium and the increase in individual wage risk as observed in the U.S. over four decades. They use a quantitative macroeconomic model to show how a rise in uninsured wage risk encourages individuals to save more and, therefore, increases capital stock, resulting in a greater skills premium due to capital labor complementarity. Read more