This paper models the interaction between individuals' identity choices and redistribution. Both redistributive policies and identity choices are endogenous, and there might be multiple equilibria. The model is applied to ethnicity and social class. In an equilibrium with high taxes, the poor...

No abstract.

I develop a model of public sector contracting based on the multitask framework by Holmström and Milgrom (1991). In this model, an agent can put effort into increasing the quality of a service or reducing costs. Being residual claimants, private owners have stronger incentives to cut costs than...

Why do individuals engage in personally costly, partisan activities that benefit others? If individuals act according to rational self-interest, then partisan activity occurs only when the benefits of that activity exceed its costs. However, laboratory experiments suggest that many people are...

Participants in laboratory games are often willing to alter others' incomes at a cost to themselves and this behaviour has the effect of promoting cooperation. What motivates this action is unclear: punishment and reward aimed at promoting cooperation cannot be distinguished from attempts to...