This paper shows that vertical fiscal inefficiencies impede federally organized countries in successfully attracting foreign direct investment. Such countries, particularly if characterized by weak institutions, are disadvantaged in the process of bidding for firms and in their ability to commit...

We analyze a contest between two groups where group members have differing valuations for the contested rent. Generically the pivotal group member with the median valuation of the rent will not act himself but will want to send a group member that has preferences different to her own into the...

Previous literature concludes that replacing wage taxation by taxes on a fixed factor or its rents benefits future generations. However, the effects of such steady-state gains on the transition generations have been left open. In this paper, we show that taxation of rents may also increase...

Many economic decisions involve a substantial amount of uncertainty, and therefore crucially depend on how individuals process probabilistic information. In this paper, we investigate the capability for probability judgment in a representative sample of the German population. Our results show...

This paper empirically examines social network explanations for migration decisions in the context of German reunification. Using longitudinal data from the German Socio-Economic Panel, we first show that the presence of a family in West Germany is an important predictor for the migration hazard...

This paper isolates the causal effect of policing on group violence, using unique panel data on self-reported crime by soccer and ice hockey hooligans. The problem of reverse causality from violence to policing is solved by two drastic reallocations of the Stockholm Sport Intelligence and...

Starting in January 2003, Germany implemented the first two so-calledHartz reforms, followed by the third and fourth packages of Hartzreforms in January 2004 and January 2005, respectively. The aim of thesereforms was to accelerate labor market flows and reduce unemploymentduration. Without...

This study analyzes the impact of opening up markets on the diffusion of flexible manufacturing in a general equilibrium framework. With flexible manufacturing, suppliers can service a range of downstream industries and do not have to be concerned about being held up. Instead, the vertical...

In this paper, we introduce a model of hooliganism to study how different types of policing can be expected to affect violence and the number of hooligans in violent supporter clubs. Hooligans differ in their preferred level of fighting, and obtain utility also from social identity that...