This paper argues for the central role of risk aversion in shaping political ideology. We develop a political economy model, which makes explicit the link between risk aversion, the labor market, government policy, and ideology. Our model distinguishes the effects of risk aversion from...

This paper argues for the central role of risk aversion in shaping political ideology. We develop a political economy model, which makes explicit the link between risk aversion, the labor market, government policy, and ideology. Our model distinguishes the effects of risk aversion from...

The Employee Free Choice Act (EFCA) was the most significant legislation proposed for reforming the National Labor Relations Act (NLRA) in over a generation and the centerpiece of the American labor movement's revitalization strategy. Yet EFCA hews closely to the particular regulatory model...

Does pro-union collective bargaining legislation increase a country's rate of union membership? Contrary to conventional thinking, this paper argues that a number of significant pro-union labor laws may actually reduce union membership rates. The paper develops a series of closely-related models...

This paper argues for the central role of risk aversion in shaping political ideology. We develop a political economy model, which makes explicit the link between risk aversion, the labor market, government policy, and ideology. Our model distinguishes the effects of risk aversion from...

In spite of the increasing popularity of comparative work on other-regarding preferences, the theoretical implications of different models of altruism are not always fully understood. This paper explores different theoretical approaches to altruism and elucidates their implications, paying...

Why do corporate governance law and practice differ across countries? This paper explains how wage-setting institutions influence ownership structures and investor protection laws. In particular, we identify a nonmonotonic relationship between the level of centralization in wage-bargaining...

Why do states fail? Why do failed states persist without collapsing into complete anarchy? This paper argues that given insurgency or weakened state capacity, rulers may find it best, paradoxically, to reduce the amount of political good it provides as a means of sustaining some amount of their...

In the median-voter model of redistributive voting, an increase in the skewness of the income distribution will lead to more redistribution. Skewness is almost always assumed to be identical to inequality. But this will only be true under specific assumptions, and it is possible for an increase...