Mental accounting of public funds – The flypaper effect in the lab

Stock Price of Pandemic Covid-19 in Stock Market Performance

“…This means that the variable share price of issuers and the impact of the Covid-19 can explain the capital market performance variable of 74.4 percent, while the remaining 25.6% is influenced by other variables outside of this study (see Table 5). The T-test on the variable share price of the issuer and the impact of the Covid-19 is partially significant 0.000 <0.005 with a T value of 7.409 and 7.109 respectively, this means that part there is an effect on the issuer's share price and the impact of the Covid- 19 The interpretation of the regression is Constant (a) means that if all independent variables have a value of zero (0) then the value of the beta variable of the performance of the Indonesian capital market is -30,956, the value of the issuer's share price coefficient for variable X1 and the impact of the Covid-19 are respectively equal to 0.516 and 0.551. This means that partially every increase in the share price of the issuer and the impact of the Covid-19 by one unit, the Beta (Y) variable will increase respectively X1 and X2 by 0.516 and 0.551, assuming that the other independent variables of the regression model are fixed.…”

“…The dynamics of stock price fluctuations [6], [23], [22] listed companies listed on the Indonesia Stock Exchange (IDX) during the Covid-19 pandemic [24], [6], are felt and experienced is a major blow to all investors, both foreign investors [24] and domestic investors, as a result of the skyrocketing share price the most [2], [25] stock prices in the red zone [26], corona hitting the consumer & miscellaneous industry sector [27], [28], the value of market capitalization also fell [ 29], [30], an increase in the average daily transaction value, an increase in the average daily transaction volume, an increase in the frequency of daily transactions [16], an increase in net selling transactions of foreign investors [17], and an increase in investors managing public funds [18], [19].…”

“…particular stock. The large variety of stock price spreads provides an opportunity to hit Covid-19, but this is controlled and stable due to an increase in the average daily transaction value, an increase in the average daily transaction volume, an increase in the frequency of daily transactions [16], an increase in net selling transactions of foreign investors [17], and an increase in investors managing public funds [18], [19].…”

Empirical Fiscal Federalism

“…As far as the latter are concerned, in a recent paper Becker et al (2018) test the hypothesis of mental accounting in a laboratory context that recreates the typical collective decision-making dilemmas of multilevel government environments. In particular, they set up a redistribution game where the 'rich' players have access to a common pool of resources of variable size that can be used for redistributive purposes.…”

Revenue vs expenditure based fiscal consolidation: the pass-through from federal cuts to local taxes

“…More recently, Becker et al. ( 2020 ) find evidence in support of the flypaper effect through laboratory experiments. Although these studies provide causal estimates, they do not find evidence of asymmetric behaviour, that is a less than proportional reduction of local public spending when central grants are reduced (which is specifically the scope of our paper).…”