Aging changes the political power in a democracy in favor of the older generations. With free labor mobility like that of the EU, the success of the gerontocracy is, nevertheless, limited by migration of the young generations. This connection between political voting and voting with the feet is...

This paper analyzes the relationship between brain drain, human capital accumulation and individual net incomes in the presence of a redistributional tax policy, credit market constraints, administrative costs of tax collection, and lack of government commitment. We characterize how decreasing...

This paper analyses the implications of international trade for non-cooperative environmental policy in the case of local production externalities. A particular focus is on the potential effects of regulations on the variety of goods and the resulting international spillover caused by trade. A...

Thispaper examines the performance of non-cooperative environmentalpolicy in the case of local consumption externalities. In a two-countrymodel with monopolistic competiton, governments simultaneouslyimpose environmental product standards. Stricter regulationsforce the industrial sector to shift...

This paper analyses a political force that can cause an initial expansion of public spending on higher education and an ensuing decline in subsidies per student: the increase in the number, and thus voting power, of skilled parents. The rise of the skilled class leads to a majority for an...

We analyse optimal environmental policies in a market that is vertically differentiated in terms of the energy efficiency of products. Considering energy taxes, subsidies to firms for investment in more eco-friendly products, and product standards, we are particularly interested in how...