We argue that inter-jurisdictional competition in a regionally decentralized authoritarian regime distorts local politicians' incentives in resource allocation among firms from their own city and a competing city. We develop a tournament model of project selection that captures the driving...

A large empirical literature found that the correlation between insurance purchase and ex post realization of risk is often statistically insignificant or negative. This is inconsistent with the predictions from the classic models of insurance a la Akerlof (1970), Pauly (1974) and Rothschild and...