Not every market regulates itself, as we know from electricity markets or auctions of mobile phone frequencies. Shaping complex markets and finding efficient solutions quickly through optimal design is one of…
Fees play a critical role in shaping the pension benefits provided by defined contribution (DC) pension funds. Even small differences in fees, when compounded over a long contribution period, can lead to…
In the first edition of Economics Actually, ZEW President Professor Achim Wambach, PhD looks back on the year 2025 and gives his assessment of the current situation. He addresses the stormy debates surrounding…
Rising political polarization generates significant negative externalities for democratic institutions and economic stability, yet scalable interventions to reduce polarization remain scarce. In this paper, I…
The advantages of adaptive experiments have led to their rapid adoption in economics, other fields, as well as among practitioners. However, adaptive experiments pose challenges for causal inference. This note…
We investigate whether firms engage in VAT evasion at the retail stage—typically a point of weakness in VAT systems—in a high-enforcement, low-informality setting. To measure evasion, we exploit a reform of VAT…
How do retirees choose among home equity release products? Despite housing wealth being households’ largest asset, little is known about preferences for different equity release products. We conduct a survey…
How do retirees choose among home equity release products? Despite housing wealth being households’ largest asset, little is known about preferences for different equity release products. We conduct a survey…
This paper studies the misallocation of Medicaid funds, its consequences for reimbursement rates, the quantity, and the quality of care provided. Combining two decades of administrative, audit, and survey data…
