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This dissertation comprises three essays. Although their titles make clear their self-contained nature, all essays share a common motivation: to combine economic theory with modern tools of causal inference to understand applied problems.
The first chapter studies honesty when the costs to behave honestly change. Using field data from a snack delivery company that employs an honesty payment system, the chapter presents an event study to analyze how price increases affect pay rates. The honesty payment system expects customers to pay a listed price for each consumed snack. This allows me to measure honesty with the pay rate that compares consumption to payments. The results, which draw on deliveries from several thousand firms, show that price increases that make honest behavior more costly cause more cheating. Price increases of 15% trigger a fall in pay rates of 11%.
The second chapter studies a recent legal reform in Germany, which aims to lower commission rates of real estate agents by raising the cost salience of sellers. I find that the reform has backfired and real estate agents have exploited the transition to increase their commission rates. The findings document that in some regions real estate agents increase their commission by up to 2 percentage points, adding over e6,000 in transaction cost to the average home sale. As explicit collusion is unlikely in this setting, I argue that this arbitrary increase points to seller ignorance instead. To verify if and why sellers fail to induce price competition, I run a pre-registered survey experiment with 1,062 real estate agents. Although commission rates should be negotiated independently for each sale, the survey confirms that 85% of sellers do not attempt to negotiate lower commission rates. The randomized experimental questions suggest that real estate agents may cater to the low willingness of sellers to negotiate by providing misleading reference commission rates and shrouding the economic incidence for sellers.
The third chapter is co-authored with Christian Traxler and Carsten Burhop and examines the causal effect of beer on crime based on unique panel data from Germany between 1882 and 1913. Using exogenous variation in the yield of spring barley, a key input in beer production, we identify a quantitatively and qualitatively significant effect of beer on violent crimes. This effect is mainly driven by a positive effect on assaults, where our findings suggest that a 1% increase in beer production raises assault rates by the same percentage. These findings are corroborated using a complementary empirical design that exploits a brewing tax reform in Prussia.
In fiscal redistribution negotiations, fiscally weaker sub-units aim to secure more funding but are disempowered by their dependency and lack of bargaining chips. What kind of negotiation strategies do fiscally weak actors rely on to maximize their bargaining positions in redistributive negotiations? The article puts forward a novel strategy of discursive framing whereby relatively powerless actors can reach successful agreements. Two strategies of framing, communitarian and coercive, are observed inductively through a comparative case study analysis of two instances of sub-federal redistribution negotiations in Canada. The findings reveal that ‘more is not always better’: more publicity and aggression can backfire, while communitarian strategies grounded in normative argumentation can prove effective despite their non-confrontational nature. Even a mixed communitarian-coercive strategy can prove effective given that sub-units remain consistent with their initial objectives and apply pressure incrementally. The lessons learned from these Canadian cases have broader implications for studying the dynamics of redistributive negotiations globally.
This thesis is a comprehensive study of trust. The study rests on the argument that all forms of trust stem from the same universal concept. Once trust has been defined at its core, the concept can be specified within a wide variety of contexts, such as trust in your friends and family, in your fellow citizens, or in different kinds of institutions within your country. Although trust is an increasingly popular topic within the social sciences, a lack of consensus on the true meaning of the concept remains. One the one hand, this can be attributed to diverging conceptualisations in a rich and multidisciplinary conceptual literature. On the other, to empirical studies where quantifiable measures do not spring from a clear conceptual account, but rather take survey responses directly at face value. Based on this fundamental issue, the overarching goal of my thesis is to bridge the gap between the conceptual and empirical literature.
I achieve this goal with three contributions. Firstly, I conduct a conceptual analysis of trust, which results in a unifying conceptual framework. The framework acknowledges and combines different conceptual understandings from political science, psychology and sociology, thereby representing a move towards clearer consensus on the meaning of trust within the conceptual literature. Secondly, I develop a new measurement model for trust, which is directly rooted in the conceptual framework. The model reflects an alternative approach to empirical research, where quantitative measures of trust are derived from a conceptual argument on the appropriate structure and dimensionality. Thirdly, I identify a typology of citizens who trust in fundamentally different ways. The typology acts as a complementary perspective on the meaning of trust, studied from the viewpoint of citizens in a heterogeneous population.
As a whole, I argue that the thesis represents a new approach to trust research, where conceptual and empirical methods are closely intertwined. In order to advance our understanding of this fundamentally important concept, it is crucial to bring the two strands of the literature closer together.
In the past decade, social media has revolutionized how governments create public value through online communication and collaboration with citizens. Despite this, academic literature still lacks a comprehensive understanding of how public value is disseminated via social media. This research delves into the process of public value creation on social media in New Zealand, a leading country in leveraging social media for government-to-citizen communication, particularly during crises.
The study seeks to answer two questions about creating or eroding public value over social media. The first question investigates the socio-demographic factors correlating with citizens' varying perceptions of public value from social media adoption. The findings suggest that citizens with similar public value perceptions share common socio-demographic characteristics, such as age, gender, education, trust in government, platform usage, and following government accounts. The study also reveals differences in public value perceptions based on the platform type, with platforms like Twitter garnering more positive public value perceptions than Facebook.
The second question examines how using social media in government can enhance or diminish public value perceptions among citizens. The research constructs a causal model where specific social media practices during peaceful and crisis times, along with the engagement of external stakeholders, lead to increased perceptions of public value creation. The study also uncovers two causal mechanisms for the erosion of public value. In the first model, government reactions to opposing opinions on social media, such as hiding or removing comments, result in low public value perceptions. The second model shows that over-posting or posting irrelevant information can reduce citizens’ trust in the government, limit government posts' reach, and lower public value perception.
This research encourages future studies to replicate the experiment across various platforms and countries to better understand how public value can be created or eroded over social media.
The increasingly litigated Article 18 ECHR aims at unmasking the ‘hidden agenda’ pursued by states that proclaim to be restricting human rights for legitimate reasons, but in fact do so for an ‘ulterior purpose’. These complaints generate complex evidentiary challenges. This article investigates the evidentiary regime of Article 18 since the delivery of the Grand Chamber Merabishvili v Georgia judgment in 2017. It shows that this regime is composed of a three-legged evidentiary test requiring: (1) that the Article 18 complaint is a fundamental aspect of the case, (2) the identification of an ‘ulterior purpose’, and (3) the predominance of this purpose in the state’s overall motivation. The article argues that this three-stage test is sui generis, despite borrowing elements from evidentiary regimes, both from other Convention provisions and externally, and that it lacks clarity and coherency: facilitating a higher standard of proof for the provision, which largely burdens applicants.
This book provides an in-depth empirical analysis and theoretical history of the institutional development of EU police cooperation, with a focus on the creation and integration of Europol.
Presenting a thoroughly comprehensive analysis, the book systematically traces integration dynamics and the evolution of EU police cooperation over a 40-year period, assessing the influence of cross-country interdependencies, politicisation and policy entrepreneurship on Member States’ behaviour and institutional choice. By combining a wealth of sources including previously unpublished sources and personal insights from key decision-makers, it explores which driving factors shape processes of differentiation and integration in this sovereignty-sensitive policy domain, and how, and attempts to explain state preferences on international police cooperation in the light of major theories of European integration.
The book will be of key interest to students, scholars and practitioners working in or on the fields of police cooperation, Justice and Home Affairs policy, EU governance and security studies, both at national and European level.
From Developing Country Leader to Flexible Negotiator: New Directions in Brazilian Trade Strategy
(2023)
Brazil has changed its negotiation strategy in World Trade Organization (WTO) negotiations. In the first half of the WTO era (1995–), Brazil adopted a strong developing country leadership role as coordinator and spokesperson of the G20 group of developing countries. More recently, however, this group has disappeared from the negotiation scene. This article examines how Brazil has departed from a 2000 status quo and arrived at a more flexible approach, less reliant on the industrialized-developing divide as a structuring principle of its diplomacy. Using WTO negotiation documents, trade delegate interviews, dispute settlement case law, and secondary literature, I outline the contours of new directions in Brazilian trade policy. These include joint legislative initiatives with the EU, a move towards the plurilateral level on non-traditional issues, a greater heterogeneity of dispute settlement targets, and a newly flexible handling of its rights under the WTO's special and differential treatment status. The article contributes to ongoing debates on Brazil's status in international affairs, its reliance on large coalitions, and the maintenance of followership as key directives of its foreign policy, and scholarship that sees Brazil as stuck in a ‘graduation dilemma’.