This paper shows that outsourcing of parts of the workforce in unionized firms leads to wage moderation and as long as the share of the outsourced workforce is not too large, this wage moderation effect on domestic employment outweighs the direct substitution effect so that domestic employment...

We study how the optimal degree of conservatism relates to decision-making procedures in a Monetary Policy Committee (MPC). In our framework, central bank conservatism is required to attenuate the volatility of monetary decisions generated by the presence of uncertainty about the committee...

The paper studies wage and employment determination in the Swedish business sector from the mid-1910s to the late 1930s. This period includes the boom and bust cycle of the early 1920s as well as the Great Depression of the early 1930s. The events of the early 1920s are particularly intriguing,...

It is common knowledge that mobile individuals are difficult to tax. Governments accommodate these difficulties by granting special tax reductions to mobile individuals as it is expedient to get some tax revenue from these individuals rather than to lose them as tax payers completely. Taxing...

We build a model of secession crises where voters may wish to accommodate the minority to prevent secession. We show the existence of a majority voting equilibrium with a government's type biased in favor of the minority. We propose a measure of secession risk and perform the comparative static...

Economists usually think that rational voters have little incentives to acquire costly information. We present a theoretical model to show that, in contrast to this widely held belief, rational voters acquire considerable amounts of information if media technology is available because then they...

This paper shows that import exposure affects voting behavior because it affects local labor markets. We develop a new framework for mediation analysis where one instrumental variable is sufficient to identify three causal effects. Using German data from 1987–2009, we find that import exposure...