Previous literature concludes that replacing wage taxation by taxes on a fixed factor or its rents benefits future generations. However, the effects of such steady-state gains on the transition generations have been left open. In this paper, we show that taxation of rents may also increase...

This paper examines micro-level channels through which financial development can affect such macroeconomic outcomes as level of income. Specifically, we investigate theoretically and empirically how financial constraints affect a firm’s innovation activities. Theoretical predictions are tested...

In this paper we analyze the conditions under which a foreign direct investment (FDI) involves a net capital flow across countries. For this purpose, we investigate how multinational firms finance their foreign affiliates, globally or locally. We develop a contract theoretical model in which the...

We consider lifetime health insurance contracts in which ageing provisions are used to smooth the premium profile. The capital stock accumulated for each individual can be decomposed into two parts: a premium insurance and an annuitized life insurance, only the latter being transferable between...

This paper isolates the causal effect of policing on group violence, using unique panel data on self-reported crime by soccer and ice hockey hooligans. The problem of reverse causality from violence to policing is solved by two drastic reallocations of the Stockholm Sport Intelligence and...

The internationalisation of research and development (R\&D) is continuously increasing and will also take on steadily growing importance in the future. Firms are very mobile when deciding upon their R\&D locations and choose locations where they can profit from local knowledge. In the light of...

The paper investigates how barter can be used to finance imports and restore the creditworthiness of highly indebted countries when reputation as an enforcement mechanism for credit repayment does not work. The authors argue that payments in goods can be used to collateralize a trade credit and...

In this paper, we introduce a model of hooliganism to study how different types of policing can be expected to affect violence and the number of hooligans in violent supporter clubs. Hooligans differ in their preferred level of fighting, and obtain utility also from social identity that...

This paper investigates public and private choices between internationally applicable and country-specific education when graduates are mobile. Human capital depends on innate skills and study effort with either type of education. It is shown that national governments provide too few students...