In standard contract-theoretic models, the underlying assumption is that an agent is purely selfish, and his objective is to maximize his own payoff. A large amount of empirical evidence has pointed out that many individuals are also motivated by other psychological considerations, such as fairness concerns and reciprocity. Theorists have been engaged in finding more realistic assumptions that are consistent with the ways in which economic agents behave in real life. Among the existing theories, the theory of inequity aversion developed by Fehr and Schmidt [35] has attracted enormous attention. It soon became a useful tool in behavioral contract theory, which capitalizes on the power of social preferences theories to enhance understanding of real-world contracting phenomena. The present thesis aims at contributing to the behavioral contract literature by investigating how inequality aversion preferences impact on the optimal contract design in a financial contracting environment and the agent's incentive in a career concerns experiment. Chapter 2 reviews some of the recent theoretical contributions to the development of the theories of reciprocity and fairness. Emphasis is placed on sketching the theories, demonstrating their abilities to explain experimental regularities and pointing out some potential problems that are inherent in the existing theories. In addition, we present a survey of the recent theoretical contributions linking inequality aversion and the theory of incentives, where the traditional selfish agent assumption is replaced by the more realistic assumption that the individual agent is also inequality-averse. Incorporating more realism into economic modelling, such as assuming some individuals are inequality-averse, appears to be a promising avenue for research in the theory of incentives, as it generates more refutable predictions that models based on the selfish agent assumption cannot offer. Chapter 3 analyzes a tractable two-period staged financing model in which a single principal interacts with an agent who is risk-neutral and inequality-averse, offering him an equity contract. We fully characterize the menu of the optimal sharing contracts. Our results show that inequality-aversion changes the structure of the optimal contract. More importantly, we show that it is more likely we will observe an equal sharing contract when the agent is inequality-averse. Our findings for efficiency comparison indicate that inequality-aversion exacerbates the distortions caused by moral hazard, which leads to a further downward distortion in terms of total social welfare in this staged financing context. Incorporating inequality-aversion into a dynamic staged financing game thus allows us to interpret real-world contractual arrangements in the venture capital industry where equal split contracts dominate. In Chapter 4, we revisit the innovative Holmström's-type career concerns experiment by Irlenbusch and Silwka [47]. In particular, we introduce inequality-aversion, a theoretical short cut for reciprocity, into the analysis and investigate if it is the missing link that potentially drives the results in the experiment. Two related but conceptually different models are considered. The complete information model confirms that inequality-aversion induces positive effort in the second period, but does not predict any differences in the effort choices across both periods in the revealed-ability setting. The incomplete information model's predictions conform more closely to the observations in the revealed-ability setting, and its predictions for the hidden-ability setting can partly explain the lower effort choices observed in the hidden-ability setting. Our analysis suggests that inequality-aversion is part of the missing link, but not all. Incorporating fairness intentions into the analysis should open more opportunities for explaining the experimental results in Irlenbusch and Silwka. / http://proxy.library.adelaide.edu.au/login?url= http://library.adelaide.edu.au/cgi-bin/Pwebrecon.cgi?BBID=1339820 / Thesis (Ph.D.) - University of Adelaide, Business School, 2008

The distribution of economic wellbeing is generally regarded as one of the key performance indicators of a society and economic wellbeing is strongly influenced by income, wealth and consumption. Despite this, almost all studies of inequality in Australia have relied upon income as the sole measure of economic wellbeing, due in large part to the ready availability of income data. This thesis attempts to redress that deficiency. This thesis provides an insight into an under-researched but vitally important topic � the distribution of wealth. Specifically the research has three goals. The first is to provide estimates of the level and distribution of wealth in Australia at the current time and the trends over the past decade or two. The second aim is to provide projections of the future wealth distribution. The final goal is to see if there are significant differences between the distribution of lifetime wealth and the annual cross-sectional distribution of wealth. The research uses a technique not previously used in Australia to estimate wealth in the future � dynamic microsimulation. The microsimulation model used is based on a starting sample of 150,000 individuals and this large number allows a large range of experiences to be modelled, while not having the high costs, years of commitment and other problems associated with undertaking panel studies. This thesis estimates that the average levels of wealth will increase significantly over the 40-year period from 2000 to 2040 but that wealth inequality will increase over the same period. The reasons for the increases in wealth inequality appear to be due to changes in asset ownership, particularly lower levels of home ownership; the ageing population; and increases in inequality within age cohorts. The research found that lifetime wealth inequality for a sub-group of Generation X differed from the distribution based on annual data. The lifetime wealth inequality was significantly less than the annual wealth inequality.

<p>Paper 1 : A geometrical version of Hardy's inequality for W_0^{1,p}(D).</p><p>The aim of this article is to prove a Hardy-type inequality, concerning functions in W_0^{1,p}(D) for some domain D in R^n, involving the volume of D and the distance to the boundary of D. The inequality is a generalization of a previously proved inequality by M. and T. Hoffmann-Ostenhof and A. Laptev, which dealt with the special case p=2.</p><p>Paper 2 : A Hardy inequality in the Half-space.</p><p>Here we prove a Hardy-type inequality in the half-space which generalize an inequality originally proved by V. Maz'ya to the so-called L^p case. This inequality had previously been conjectured by the mentioned author. We will also improve the constant appearing in front of the reminder term in the original inequality (which is the first improved Hardy inequality appearing in the litterature).</p><p>Paper 3 : Hardy type inequalities for Many-Particle systems.</p><p>In this article we prove some results about the constants appearing in Hardy inequalities related to many particle systems. We show that the problem of estimating the best constants there is related to some interesting questions from Geometrical combinatorics. The asymptotical behaviour, when the number of particles approaches infinity, of a certain quantity directly related to this, is also investigated.</p><p>Paper 4 : Various results in the theory of Hardy inequalities and personal thoughts.</p><p>In this article we give some further results concerning improved Hardy inequalities in Half-spaces and other conic domains. Also, some examples of applications of improved Hardy inequalities in the theory of viscous incompressible flow will be given.</p>

Let X = (X1,.....,Xm) be an infinitely degenerate system of vector fields, we study the existence and regularity of multiple solutions of Dirichelt problem for a class of semi-linear infinitely degenerate elliptic operators associated with the sum of square operator Δx = ∑m(j=1) Xj* Xj.

Paper 1 : A geometrical version of Hardy's inequality for W_0^{1,p}(D). The aim of this article is to prove a Hardy-type inequality, concerning functions in W_0^{1,p}(D) for some domain D in R^n, involving the volume of D and the distance to the boundary of D. The inequality is a generalization of a previously proved inequality by M. and T. Hoffmann-Ostenhof and A. Laptev, which dealt with the special case p=2. Paper 2 : A Hardy inequality in the Half-space. Here we prove a Hardy-type inequality in the half-space which generalize an inequality originally proved by V. Maz'ya to the so-called L^p case. This inequality had previously been conjectured by the mentioned author. We will also improve the constant appearing in front of the reminder term in the original inequality (which is the first improved Hardy inequality appearing in the litterature). Paper 3 : Hardy type inequalities for Many-Particle systems. In this article we prove some results about the constants appearing in Hardy inequalities related to many particle systems. We show that the problem of estimating the best constants there is related to some interesting questions from Geometrical combinatorics. The asymptotical behaviour, when the number of particles approaches infinity, of a certain quantity directly related to this, is also investigated. Paper 4 : Various results in the theory of Hardy inequalities and personal thoughts. In this article we give some further results concerning improved Hardy inequalities in Half-spaces and other conic domains. Also, some examples of applications of improved Hardy inequalities in the theory of viscous incompressible flow will be given.

The thesis consists of three essays on urban economies. The first essay investigates the relationship between proximity to larger markets and wage distribution within local labor markets. In this essay I derive a theoretical spatial skill demand equation that positively links skill premiums to market access. Using data from U.S. metropolitan areas, I provide evidence that while average wages are higher in metropolitan areas with higher market access, as suggested in the existing literature, the wage differential is unequally distributed across the metropolitan workers. That is, greater access to markets is linked to relatively weaker outcomes for those at the bottom of the wage distribution.<p> The second essay examines the extent of urban sprawl with respect to the volatility of local economies. Specifically, it investigates how uncertainty over future land rents explains changes in the extent of urban sprawl. To theoretically study this relationship, I develop a theoretical model that links sprawl to shocks to changes in land development rent, among other factors. The econometric analysis draws upon panel data from U.S. metropolitan areas over the 1980-2000 censuses. To measure urban sprawl, I construct a distinctive measure that better captures the distribution of population density within metropolitan areas. Using suitable proxy that accounts for uncertainty over future land rents, I provide robust evidence confirming the theoretical prediction. That is, metropolitan areas with higher levels of uncertainty have a lower level of sprawl.<p> Finally, the third essay uses theories from urban production economics to empirically investigate the relationship between the economic performance of U.S. metropolitan areas and their respective amounts of sprawl. Specifically, this essay provides a comprehensive empirical analysis on the impact of urban sprawl on labor productivity. The main finding suggests that higher levels of urban sprawl are negatively associated with average labor productivity. Interestingly, this negative association is even stronger in smaller metropolitan areas. Still, there is evidence that the significance of the negative impact of sprawl is not homogenous across major industries.

This dissertation is comprised of three papers. In Chapter 1 I analyze if career heterogeneity in terms of life-cycle earnings, occupational mobility and unemployment is predominantly driven by skills acquired prior to labor market entry or by decisions made and shocks accumulated over the working life. My study is based on a Dynamic Discrete Choice model that enriches the proto-typical dynamic Roy-model with a number of potentially important sources of career heterogeneity, such as match heterogeneity and permanent shocks to skills. I find that a large fraction of life-cycle income inequality is driven by match heterogeneity among workers with the same observable and unobservable credentials. Differences in comparative advantages, though quantitatively important as well, have a much smaller impact than what has been found in research that relies on estimates from more restrictive dynamic Roy models. In Chapter 2 I estimate a flexible non-stationary variance components model of residual earnings dynamics and investigate if recent increases in residual inequality are caused by an increase of the variances of permanent, persistent or transitory shocks. My results suggest that underlying sources of increasing wage inequality are very different across education groups. Most importantly, only the lesser educated experience a large increase in earnings instability. Chapter 1 and 2 utilize a unique administrative data set from Germany that follows workers from the time of labor market entry until twenty-three years into their careers. In the last chapter I investigate empirically if a particular set of pre-labor market skills – namely university student achievement – can be fostered by assigning male teachers to male students and female teachers to female students. I find that being taught by a same-sex instructor helps students to improve their relative grade performance and the likelihood of completing a course, but the magnitudes of these effects are small.

This dissertation is comprised of three papers. In Chapter 1 I analyze if career heterogeneity in terms of life-cycle earnings, occupational mobility and unemployment is predominantly driven by skills acquired prior to labor market entry or by decisions made and shocks accumulated over the working life. My study is based on a Dynamic Discrete Choice model that enriches the proto-typical dynamic Roy-model with a number of potentially important sources of career heterogeneity, such as match heterogeneity and permanent shocks to skills. I find that a large fraction of life-cycle income inequality is driven by match heterogeneity among workers with the same observable and unobservable credentials. Differences in comparative advantages, though quantitatively important as well, have a much smaller impact than what has been found in research that relies on estimates from more restrictive dynamic Roy models. In Chapter 2 I estimate a flexible non-stationary variance components model of residual earnings dynamics and investigate if recent increases in residual inequality are caused by an increase of the variances of permanent, persistent or transitory shocks. My results suggest that underlying sources of increasing wage inequality are very different across education groups. Most importantly, only the lesser educated experience a large increase in earnings instability. Chapter 1 and 2 utilize a unique administrative data set from Germany that follows workers from the time of labor market entry until twenty-three years into their careers. In the last chapter I investigate empirically if a particular set of pre-labor market skills – namely university student achievement – can be fostered by assigning male teachers to male students and female teachers to female students. I find that being taught by a same-sex instructor helps students to improve their relative grade performance and the likelihood of completing a course, but the magnitudes of these effects are small.

Following the increased attention income differences/inequality has gained within the area of economic geography and among policy-planning; this study seeks to explore and analyze the factors affecting income differences in the regions of Ghana. From the use of regional (10 regions) panel data for 1960, 1970, 1984 and 2000; the results show a direct link between socio-demographic factors and regional income differences/inequality and also the impact of ethnic and religious composition on regional income differences. It was identified that ethnicity and religious compositions have different impacts on regional income differences. Christians have positive effect on regional income due to their fairly representation in almost all the regions likewise the Akans, but have negative effect on regional income. And also high population density in a region reduces the mean regional income, similarly high concentration of population aged 60years and over reduces the regional income. Evidence from the results empirically conclude that regions with high share of aged population, Akans, Muslims and high population density have low regional income compared with regions with high share of Christians.

It is suggested that people’s perceptions that they are inevitably tied to the social systems within which they operate motivate them to justify these systems. Evidence is obtained across four experimental studies using a variety of different methods. All studies test the basic proposition that increasing inevitability – that is, making a system seem either more difficult to escape or more unlikely to change – increases motivated rationalization. Studies 1 and 2 demonstrate this basic phenomenon, using a known measure of system justification. Studies 3 and 4, in addition to conceptually replicating this phenomenon via different paradigms, provide support for a motivational (as opposed to purely cognitive-inferential) account, and mediational and moderational evidence for my proposed mechanism, respectively. The implications of these results – for the refinement of system justification theory – are discussed.