Although the self-selection of emigrants is determined by di¤erences in the returns to education, according to the celebrated Roy model, empirical evidence suggests that migrants tend to be favorably selected. This paper argues that financial con- straints might be useful to explain this...

This paper analyzes the determinants of local institutions and distribution of political power within a constant ‘macro-institutional’ setting. We show that characteristics of Brazilian municipalities related to institutional quality and distribution of political power are partly inherited...