This paper proposes a theory of migration decisions in which cultural traits play a role. Individuals are assumed to value comfort (high wages) and conformity (interactions with individuals who share similar world views). Regions are assumed to differ economically (average wages) and culturally...

This paper proposes a theory of migration decisions in which cultural traits play a role. Individuals are assumed to value comfort (high wages) and conformity (interactions with individuals who share similar world views). Regions are assumed to differ economically (average wages) and culturally...

I formulate a political-economy model of a fiscal union where the threat of secession imposes a limit on fiscal redistribution between regions. I argue that the trade-off between implementing the region's preferred fiscal policy and benefiting from inter-regional risk sharing depends on the...

This paper analyzes the political economy of the reform process theoretically and empirically. Building on the framework developed by Rodrik [1995], a two-sector model of a transition economy is constructed. This model is then used to study the dynamics of political support for the reforms. The...