Corporate organization varies within a country and across countries with country size. The paper starts by establishing some facts about corporate organization based on unique data of 660 Austrian and German corporations. The larger country (Germany) has larger firms with flatter more decentral...

We propose a model of intergenerational transmission of education wherein children belong to either highly educated or low-educated families. Children choose the intensity of their social activities while parents decide how much educational effort to exert. Using data on adolescents in the...

This paper presents a new theory of crime where leaders transmit a crime technology and act as a role model for other criminals. We show that, in equilibrium, an individual's crime effort and criminal decisions depend on the geodesic distance to the leader in his or her network of social...

Civil conflicts spill over into neighboring countries. This paper proposes a theory of the contagion of civil wars. Weak territorial control facilitates the emergence of a regional market for war inputs in the “porous frontier.” The contagion effect is nonlinear and creates multiple...

We build a model of conflict in which two groups contest a resource and must decide on the optimal allocation of labor between fighting and productive activities. In this setting, a diaspora emanating from one of the two groups can get actively involved in the conflict by transferring financial...

In order to elucidate the revival of religion in the Muslim countries, we must not only understand the spread of puritan interpretations of the faith (as they have permeated movements running from Muslim Brothers to violent Islamist movements), but also comprehend the process whereby these more...