Droughts are becoming increasingly common in India, where 50 per cent of the labour force works in agriculture, and most agricultural production is rainfall-dependent. This paper investigates the extent to which rural households adapt to drought – defined as rainfall deficiency – by reallocating labour from agriculture to other sectors of the economy. We estimate a household-level fixed-effects regression model and find that household agricultural employment declines in the year following a drought. Furthermore, these effects are mediated by job skills and land ownership. We find that households with working members who have completed primary education account for most of the workers who exit the agricultural sector. In contrast, we find that households that own land increase their agricultural labour share after experiencing a drought. Thus, while we find that drought causes households to diversify away from agriculture on aggregate, the extent of this structural change is mitigated by the behaviour of landowners.

Environmental taxation is often justified by the ‘double dividend’ hypothesis, yet evidence overwhelmingly derives from high-income countries. In low-income countries (LICs), where broadening the tax base is a central fiscal priority, we identify a special case – the ‘tax base’ double dividend– in which environmental levies simultaneously curb emissions and strengthen revenue capacity. Exploiting Uganda’s 2018 reform of vehicle import duties as a natural experiment, we use administrative microdata covering all motor vehicle imports and a difference-in-differences strategy to assess this proposition. The reform generated substantial revenue gains alongside modest improvements in the emissions profile of imports. Effects varied by vehicle type, highlighting the need for policy tailoring. Drawing on these results, we outline design principles for LICs, emphasising sequencing, enforcement and inter-agency coordination. Uganda’s experience shows that administratively simple, import-based carbon taxes can serve as an effective and politically feasible entry point to carbon pricing while advancing domestic resource mobilisation.

Behavioral instruments have unique advantages in certain governance contexts for the reasonable use of public products. Drawing on bounded rationality, we compare two major behavioral instruments – nudging and boosting – and experimentally test their effectiveness in promoting reasonable use of public products. We select the default option (nudging) and future orientation (boosting) as specific instruments. In Study 1, we conduct a laboratory experiment and find that (1) both the default option and future orientation reduce free electricity usage; (2) the immediate effect of the default option is greater than that of future orientation, but its delayed effect is smaller; and (3) the combination strategy is more effective than any single intervention. In Study 2, we conduct a field experiment targeting reasonable use of public toilet paper and basically replicate the results of the laboratory experiment. These findings reinforce our confidence in the effectiveness of nudging and boosting and suggest the possibility of bridging behavioral science with governance theory.

The rapid expansion of mobile sports betting in the United States poses a growing threat to the financial well-being of military personnel, particularly young enlisted soldiers. This paper explores how the unique characteristics of military life – such as high stress, risk tolerance, and financial vulnerability – intersect with the accessibility and psychological appeal of mobile sports betting platforms. Drawing on recent data and behavioral research, we examine the potential prevalence of gambling among soldiers, the potential for addiction, and the broader implications for mental health and unit readiness. The analysis highlights how mobile betting undermines personal economic security by reducing savings and investment behaviors, such as contributions to the thrift savings plan (TSP). Despite the Department of Defense’s efforts to promote financial literacy, current financial education programs often overlook gambling risks. We argue for the urgent integration of targeted financial education, behavioral health support, and policy interventions to mitigate the impact of mobile sports betting. This paper contributes to the emerging discourse on digital gambling and military readiness, emphasizing the need for proactive strategies to safeguard soldiers’ financial and psychological resilience.

To enhance the supervision of regional environmental issues, China initiated a nationwide campaign in 2007 to establish environmental courts and formulate local environmental regulations. This study selected Shanghai and Shenzhen A-share listed companies from 2004 to 2021 as its research sample to examine the impact of local environmental legislation and the establishment of environmental courts on corporate carbon emissions. The findings indicate that the combined effect of these measures significantly curbs carbon emissions. Additionally, the study identifies that the intensity of local environmental court establishment and the implementation of corporate pollution charges or environmental protection taxes are critical mechanisms through which environmental legislation and court establishment reduce corporate carbon emissions. Finally, the interaction of environmental legislation and court establishment on corporate carbon emissions is most pronounced in regions where the government exhibits lower environmental concern, in state-owned enterprises, in enterprises located in the eastern region and in highly polluted cities.

This study examines whether different biodiversity proxies – species, habitat and functionality – satisfy the scope sensitivity and plausibility criteria in willingness to pay (WTP) estimation using a choice experiment in Manu National Park, Peru. We introduce the network of species interactions as a proxy for functionality and apply latent class (LC) models, including attribute non-attendance (ANA), to account for heterogeneity in preferences. Our results indicate that functionality is the only proxy consistently meeting both validity criteria across all specifications. LC analysis reveals two segments: one (74.4 per cent) displaying coherent, scope-sensitive WTP across biodiversity attributes, and another (25.6 per cent) less engaged, disregarding standard proxies but still valuing networks. Even under ANA constraints, networks remain salient for less attentive respondents, underscoring their cognitive accessibility in complex ecological contexts. These findings highlight the methodological and policy relevance of functionality-based proxies for biodiversity valuation in megadiverse environments, where conventional measures may fail to elicit behaviourally consistent responses.

This paper analyzes individual behavior in multi-armed bandit problems. We use a between-subjects experiment to implement four bandit problems that vary based on the horizon (indefinite or finite) and the number of bandit arms (two or three). We analyze commonly suggested strategies and find that an overwhelming majority of subjects are best fit by either a probabilistic “win-stay lose-shift” strategy or reinforcement learning. However, we show that subjects violate the assumptions of the probabilistic win-stay lose-shift strategy as switching depends on more than the previous outcome. We design two new “biased” strategies that adapt either reinforcement learning or myopic quantal response by incorporating a bias toward choosing the previous arm. We find that a majority of subjects are best fit by one of these two strategies but also find heterogeneity in subjects’ best-fitting strategies. We show that the performance of our biased strategies is robust to adapting popular strategies from other literatures (e.g., EWA and I-SAW) and using different selection criteria. Additionally, we find that our biased strategies best fit a majority of subjects when analyzing a new treatment with a new set of subjects.

This paper investigates the welfare implications of the rise of shadow banking in China, driven by regulatory arbitrage and implicit guarantees. Although shadow banking can improve social welfare by relaxing constraints on banks’ capacity to expand credit, it may also hurt social welfare due to the risk-taking behavior induced by implicit guarantees. We study the optimal level of guarantees and shadow banking in a model that balances these benefits and costs. Our findings suggest that reducing the existing degree of guarantees and shrinking the shadow banking sector could enhance social welfare in China.

This article develops a new test to detect changes in generalized autoregressive conditionally heteroscedastic (GARCH(1,1)) processes without imposing a stationary assumption. Specifically, the procedure tests the null hypothesis of a GARCH process with constant parameters, either in (strictly) stationary or explosive regimes, against the alternative hypothesis of parameter changes. We derive the limiting distribution of the test statistics and establish their asymptotic consistency. Monte Carlo simulations show that the proposed test has good size control and high power. We demonstrate a prototype application on a small group of stocks and report a further extensive application to more than ten thousand U.S. stocks.

This paper proposes constructing a new series of Brazilian sugar imports to Portugal between 1761 and 1807. The new customs data collected provides quantities, Brazilian origin, quality and taxes of the sugar. Based on the results of the empirical research, we demonstrate and corroborate the Brazilian sugar renaissance in the second half of the eighteenth century, a period of crisis in the colony’s mining industry and in the Portuguese trade balance. The growth of the sugar economy in the colony contributed to the adjustment of Portugal’s external accounts. The new information has allowed us to verify the increase in Brazilian sugar exports, especially after the early 1770s, despite the stagnation of the Portuguese economy.

Fitting loss distributions in insurance is sometimes a dilemma: either you get a good fit for the small/medium losses or for the very large losses. To be able to get both at the same time, this paper studies generalisations and extensions of the Pareto model that initially look like, for example, the Lognormal distribution but have a Pareto or GPD tail. We design a classification of such spliced distributions, which embraces and generalises various existing approaches. Special attention is paid to the geometry of distribution functions and to intuitive interpretations of the parameters, which can ease parameter inference from scarce data. The developed framework gives also new insights into the old Riebesell (power curve) exposure rating method.

Legal waivers embedded in corporate settlement agreements are commonly framed as neutral devices of dispute resolution. They promise finality, prevent double recovery and manage litigation risk. Yet in practice, waivers function as structural tools of accountability avoidance. This article examines the use of legal waivers within operational-level grievance mechanisms, focusing on three dimensions: the UNGPs’ procedural formalism, the cost dynamics of corporate settlements, and the opacity created by confidentiality provisions. It argues that the UNGPs’ emphasis on process legitimacy neglects the substantive consequences of waivers, that cost volatility incentivises their routine use, and that confidentiality provisions entrench information asymmetry while obstructing judicial oversight. The article concludes by advancing a hybrid regulatory model which prohibits blanket confidentiality of terms governing settlement agreements and advocates for greater transparency through a differentiated disclosure regime and increased judicial scrutiny by domestic courts.

Digital technologies are often seen as a powerful means for poverty reduction. Yet, much of the existing research focuses on macro-level outcomes, leaving gaps in understanding individual-level mechanisms and the processes behind successful digital interventions. This study addresses these gaps by examining how online platforms, developed as social innovation efforts, enable smallholder farmers in Japan to escape poverty. Using a qualitative, case-based approach, we analyze six social enterprises and explore how stakeholder mobilization drives the success or failure of these platforms. We developed a schematic model that captures the nonlinear, collaborative nature of the social innovation process. Our findings reveal a systemic account of why and how only two of the six platforms achieved meaningful impact, offering insights into the factors that shape the effectiveness of digital technologies in reducing poverty. In the end, our model offers practical implications for future digital poverty reduction initiatives.

Despite extensive media coverage on issues related to intellectual property (IP) in China, the academic literature on this topic has been sporadic. Two factors might be at play here. One is the multifaceted nature of IP: as IP is a legal asset with significant implications for firm performance and social welfare, the literature is scattered in various disciplines such as law, economics, strategy, and political science. The other is the unique institutional environment in China: policy-driven investments in IP have resulted in the decoupling of IP as a value appropriation mechanism in market competition and IP as a nonmarket strategy to engage with regulators. This review aims to bring the multiple streams of literature into a structured framework, with a side-by-side comparison with research based in developed countries, mostly in the US. Building on the combined research streams, we then recommend avenues of future research that can potentially speak to a broad audience in innovation, competition, and nonmarket strategies.

This article builds on the recommendations of the United Nations Working Group on Business and Human Rights to argue for the integration of access-to-remedy clauses into international investment agreements (IIAs). It contends that international investment law (IIL) exhibits imperialist tendencies, privileging corporate interests while neglecting rightsholders and thereby entrenching systemic injustice. Using the framework of legal imperialism, the article highlights how existing investment regimes create structural imbalances that deny victims’ meaningful redress. Moving beyond proposals limited to procedural reform within IIL, it advances a normative case for incorporating remedy clauses into IIAs, particularly to enable rightsholders to pursue claims in host states where harms occur. Drawing on examples from the Global South, it identifies persistent barriers such as jurisdictional hurdles and enforcement gaps. The article’s contribution lies in reframing IIAs not merely as instruments of investor protection but as potential vehicles for systemic correction, capable of moving transnational law towards equitable remedies.