increase the probability that firms offshore there, while those that increase regulation in the labor market decrease such …

market capitalization (both as share of GDP). Domestic financial openness has a positive effect on both proxies for financial … development, while trade openness seems only important for stock market capitalization. Inflation has an adverse effect on … financial development, which is larger for stock market capitalization. Finally, we conclude that the literature has not yet …

insurance cover from the private market and/or can do so only at premiums that substantially exceed their expected claims costs …

gap”. Then policies targeting durability raise welfare. While externalities are corrected by Pigovian taxes that ignore …

We investigate the causal impact of public discourse on socially responsible market behavior. We conduct laboratory … market experiments with products that differ in their production costs and social impact, and provide market actors and … impacted third parties with the opportunity to discuss appropriate market behavior. Across two studies that vary …

-benevolent politicians may not choose efficient policies. Real-world examples indicate that politicians tend to concentrate on externalities … externalities appear along the lifecycle. In a simple model, we show that it may be efficient to subsidize innovative firms in their … early stages or to protect mature firms from competition to appropriate these externalities. However, non …

. We identify an important asymmetry between positive and negative externalities and show that centralization may not be … efficient in economies with positive externalities even when regions are identical and centralization does not entail a loss of … accountability. We also show that decentralization can only Pareto dominate centralization in economies with negative externalities. …