This article considers the interaction between two types of effort in lobbying contests: effort that improves the contestant's own performance (standard rent seeking), and effort that reduces particular rivals' performance (sabotage). Due to a positive externality, sabotage is a 'small number'...

We study the residential choice of siblings who are altruistic towards their parents. The first-born child’s location choice influences the behavior of the second-born child and can shift some of the burden of providing care for the parents from one child to the other. These strategic...

In a Stackelberg framework of capital income taxation it is shown that imposing a minimum tax rate that is lower than all countries' equilibrium tax rates in the non-cooperative equilibrium may reduce equilibrium tax rates in all countries

Countries compete for new FDI investment, whereas stocks of FDI generate agglomeration benefits and are potentially subject to extortionary taxation. We study the interaction between these aspects in a simple vintage capital framework with discrete time and infinite horizon, focussing on Markov...

We study a setting with search frictions in the marriage market and with incomplete contracting inside the family. Everyone prefers a partner that has high income and is a perfect emotional match, but compromises must often be struck. A high income earner may abstain from marrying a low-income...

Incomplete information is a commitment device for time consistency problems. In the context of time consistent labor income taxation privacy can lead to a Pareto superior outcome and increases the effectiveness of public education as a second best policy