We investigate the origin, impact and evolution of the legal institution of citizenship. We compile a dataset across countries of the world from the 19th century, which documents how citizenship laws have evolved from the common and civil law traditions. Contrary to the predictions of legal...

Restrictions on work hours are more important in countries with a large welfare state. We show that this empirical observation is consistent with the strategic effects of such restrictions in a welfare state in the context of optimal direct taxation in the tradition of Mirrlees (1971). Our...

We consider the hold-up problem between a foreign direct investor and the government(s) in a host country with weak governmental structure and lack of power to commit. Using Nash threats, we show that an efficient investment level can be sustained for a sufficiently high discount factor and ask...