We design a laboratory experiment to study behavior in a multidivisional organization facing a trade-off between coordinating its decisions across the divisions and meeting division-specific needs that are known only to the division managers. The managers communicate their private information...

The empirical literature is inconclusive about whether a country’s democratization has a long-lasting impact on former supporters or opponents of the bygone regime. With newly available individual-level data of former residents of the socialist German Democratic Republic (GDR), we analyze how...

State-owned enterprises (SOEs) provide opportunities for a more flexible and market-based provision of public services. At the same time, they may impair fiscal transparency and offer politicians discretion in the presence of strict fiscal rules if these only constrain the core udget. Using a...