We study unemployment benefit provision when the family also provides social insurance. In the benchmark case, more generous State transfers crowd out family risk--sharing one--for--one. An extension gives the State an advantage in enforcing transfers through taxes (whereas families rely on...

The authors present a hold-up model of investment where active industrial policy promotes both corruption and investment. Since corruption deters investment, the effect of industrial policy on investment is lower than when corruption is absent. They find evidence suggesting that corruption is...