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  • 1
    Language: English
    Pages: 1 Online-Ressource
    Series Statement: World Development Report Background Papers
    Series Statement: World Bank E-Library Archive
    Abstract: In this paper, the authors use the lab to test a series of policy proposals designed to constrain rent-seeking behaviour in a policymaking context. The baseline governance game is conducted in the following way: subjects are randomly assigned to groups of four, with one subject randomly selected to be the "policymaker", while the other three are the "citizens". Citizens are informed that they can use their endowments to contribute to a group account. Any amount contributed to the group account are doubled. Once citizens have made their contribution decisions, the policymaker observes the contribution decisions of each citizen, and the total amount in the group account. The policymaker formulates a distribution "policy" to distribute the tokens among all four group members. The game is repeated for 20 rounds. With this basic framework, the authors implement and test the effect of three institutions designed to constrain policymaker rent-seeking behaviour: voting, policy commitment, and punishment. The results show that voting and enforced commitment are the most effective policy mechanisms to constrain rent-seeking, and improve citizen welfare. The authors find policymaker punishment regimes to be largely ineffective, both in reducing rent-seeking and improving welfare of citizens
    URL: Volltext  (Deutschlandweit zugänglich)
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  • 2
    Online Resource
    Online Resource
    Washington, D.C : The World Bank
    Language: English
    Pages: 1 Online-Ressource (31 p)
    Series Statement: World Bank E-Library Archive
    Parallel Title: Erscheint auch als Banuri, Sheheryar Biased Policy Professionals
    Abstract: A large literature focuses on the biases of individuals and consumers, as well as "nudges" and other policies that can address those biases. Although policy decisions are often more consequential than those of individual consumers, there is a dearth of studies on the biases of policy professionals: those who prepare and implement policy on behalf of elected politicians. Experiments conducted on a novel subject pool of development policy professionals (public servants of the World Bank and the Department for International Development in the United Kingdom) show that policy professionals are indeed subject to decision making traps, including sunk cost bias, the framing of losses and gains, frame-dependent risk-aversion, and, most strikingly, confirmation bias correlated with ideological priors, despite having an explicit mission to promote evidence-informed and impartial decision making. These findings should worry policy professionals and their principals in governments and large organizations, as well as citizens themselves. A further experiment, in which policy professionals engage in discussion, shows that deliberation may be able to mitigate the effects of some of these biases
    URL: Volltext  (Deutschlandweit zugänglich)
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  • 3
    Language: English
    Pages: 1 Online-Ressource (32 p)
    Series Statement: World Bank E-Library Archive
    Parallel Title: Erscheint auch als Banuri, Sheheryar Was Weber Right?
    Abstract: This paper examines the effects of pecuniary compensation on the ability and motivation of individuals in organizations with non-pecuniary or pro-social missions. In particular, the paper compares flat pay systems, unrelated with ability or effort, to two other systems that are considered superior: high-powered, pay for performance schemes and more traditional, "Weberian" schemes that calibrate pay to ability, independent of effort. The analysis uses a sample of future public sector workers and finds that all three pay schemes attract motivated workers into tasks with a pro-social mission. However, flat pay schemes also attract low ability workers. In the short run, pay-for-performance schemes generate higher effort than flat pay and pay-for-ability systems, a difference driven entirely by effects on unmotivated workers. Once selection effects are accounted for, however, workers with pay for ability and pay for performance exert statistically indistinguishable levels of effort in the pro-social task. Moreover, pay for ability elicits effort at lower cost than pay for performance
    URL: Volltext  (Deutschlandweit zugänglich)
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  • 4
    Online Resource
    Online Resource
    Washington, D.C : The World Bank
    Language: English
    Pages: Online-Ressource (29 p)
    Edition: 2012 World Bank eLibrary
    Parallel Title: Sheheryar Banuri Experiments in Culture and Corruption
    Abstract: Two decades of empirical evaluation have shown that corruption has a negative impact on economic growth, political stability, judicial effectiveness, democratization, educational attainment, and equality of income. However, corruption exists, persists, and varies significantly by culture. Lab studies have recently come to the forefront in identifying both the incentives and disincentives for corrupt behavior. However, lab studies on culture and corruption have led to some puzzling, contradictory results. This paper begins with a discussion of non-experimental work in this area, and evaluates the experimental findings in the context of earlier research. The authors sketch out the channels through which culture interacts with corruption (through institutions and social norms), and argue that discrepancies in experimental results may be due to differences in design (including repetition or unobserved variation in beliefs) or to differences in the response to punishment across societies. In addition to exploring design-based reasons for previous contradictory findings, avenues for future research include: behavioral responses to different types of externalities; replicating results in different countries; and utilizing the lab to formulate effective anti-corruption measures
    URL: Volltext  (Deutschlandweit zugänglich)
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  • 5
    Online Resource
    Online Resource
    Washington, D.C : The World Bank
    Language: English
    Pages: Online-Ressource (32 p)
    Edition: 2013 World Bank eLibrary
    Parallel Title: Banuri, Sheheryar Intrinsic Motivation, Effort and the Call to Public Service
    Abstract: Pay schemes in the public sector aim to attract motivated, high-ability applicants. A nascent literature has found positive effects of higher pay on ability and no or slightly positive effects on motivation. This paper revisits this issue with a novel subject pool, students destined for the private and public sectors in Indonesia. The analysis uses dictator games and real effort tasks to examine wage effects on a measure of motivation that exactly matches the mission of the public sector task. The model and experimental design allow for precisely measuring (1) the distribution of ability over the effort task; (2) the distribution of motivational preferences for public sector missions; and (3) outside options when choosing to work for public sector missions. Three novel conclusions emerge. First, more pro-social workers do, in fact, exert higher effort in a pro-social task. Second, in contrast to previous research, motivated individuals are more likely to join the public sector when public sector pay is low than when it is high. Third, real public sector workers exhibit greater pro-sociality than private sector workers, even for entrants into the Indonesian Ministry of Finance
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  • 6
    Language: English
    Pages: 1 Online-Ressource (circa 33 Seiten) , Illustrationen
    Series Statement: Policy research working paper 8666
    Series Statement: Policy research working paper
    Keywords: Graue Literatur
    URL: Volltext  (Deutschlandweit zugänglich)
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  • 7
    Online Resource
    Online Resource
    [Washington, DC, USA] : World Bank Group, Middle East and North Africa Region, Office of the Chief Economist
    Language: English
    Pages: 1 Online-Ressource (circa 35 Seiten) , Illustrationen
    Series Statement: Policy research working paper 9354
    Series Statement: World Bank E-Library Archive
    Series Statement: Policy research working paper
    Parallel Title: Erscheint auch als Banuri, Sheheryar Borrowing to Keep up (with the Joneses): Inequality, Debt, and Conspicuous Consumption
    Keywords: Graue Literatur
    Abstract: The quest for status is a powerful motivator, but does it affect inequality? This paper presents a novel lab experiment that was designed and conducted to identify the relationship between inequality, status signaling, debt, and conspicuous consumption. It reports three main findings: First, consumption increases when it is "conspicuous" (i.e. is both observable, and signals ability/status). Second, borrowing increases when consumption is conspicuous. More critically, this increase in loan-taking is driven by those at the bottom of the income distribution. Third, in the presence of conspicuous consumption, access to finance exacerbates inequality. The results point to a vicious cycle of inequality and costly borrowing
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  • 8
    Online Resource
    Online Resource
    Washington, D.C. : World Bank Group, Development Research Group, Human Development Team
    Language: English
    Pages: 1 Online-Ressource (circa 26 Seiten) , Illustrationen
    Series Statement: Policy research working paper 8338
    Series Statement: World Bank E-Library Archive
    Series Statement: Policy research working paper
    Parallel Title: Erscheint auch als Banuri, Sheheryar Love the Job... or the Patient? Task vs. Mission-Based Motivations in Health Care
    Keywords: Gesundheitsberufe ; Ärzte ; Studium ; Öffentlicher Sektor ; Reform ; Öffentlicher Dienst ; Motivation ; Arbeitsleistung ; Graue Literatur
    Abstract: A booming literature has argued that mission-based motives are a central feature of mission-oriented labor markets. This paper shifts the focus to task-based motivation and finds that it yields significantly more effort than mission-based motivation. Moreover, in the presence of significant task motivation, mission motivation has no additional effect on effort. The evidence emerges from experiments with nearly 250 medical and nursing students in Burkina Faso. The students exert effort in three tasks, from boring to interesting. In addition, for half of the students, mission motivation is present: their effort on the task generates benefits for a charity. Two strong results emerge. First, task motivation has an economically important effect on effort, more than doubling effort. Second, mission motivation increases effort, but only for mundane tasks and not when the task is interesting. Moreover, even for mundane tasks, the effects of mission motivation appear to be less than those of task motivation
    URL: Volltext  (Deutschlandweit zugänglich)
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  • 9
    Online Resource
    Online Resource
    Washington, D.C : The World Bank
    Language: English
    Pages: 1 Online-Ressource (52 pages)
    Parallel Title: Erscheint auch als Banuri, Sheheryar The Power of Religion: Islamic Investing in the Lab
    Keywords: Economic Investment and Savings ; Experimental Methods ; Faith-Based Funds ; Faith-Based Investing ; Investor Behavior ; Islamic Investment ; Islamic Mutual Funds ; Macroeconomics and Economic Growth ; Mutal Funds ; Socially Responsible Investment
    Abstract: Faith-based mutual funds have recently become a growing corner of the mutual fund industry. Morality and ethics are thought to exert an influence on investors' decisions in this segment, although their role in driving such investments is not clear as these funds are also attractive due to their distinct risk-return profile. If nonpecuniary motives are predominant, investors in such funds may be less sensitive to financial performance, resulting in different patterns of fund flows relative to conventional funds. This paper fills the gap in the literature, by providing an express linkage between religious preferences and investment in an Islamic fund. Using an incentivized lab experiment, the analysis compares the extent to which investors with religious preferences are likely to accept inferior financial performance to pursue investments aligned with their religious preferences. The findings show that investment in an Islamic fund is driven by religious preferences and religiosity is strongly tied to investor loyalty in the Islamic fund, with investors more willing to accept reductions in returns and increases in risk. The analysis fails to find that social preferences play a similar role in socially responsible funds. When pitted directly against each other, investors prefer religious investments over socially responsible investments, suggesting that they do not view the two as substitutes
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