It has long been argued that trade restrictions can be motivated by insurance considerations in the absence of full risk diversification. Recent theoretical research suggests that markets for risk can alleviate resistance to reform and protectionist lobby group pressure. We empirically address...

This paper studies whether the degree of female representation in Swedish local councils <p> affects local public expenditure patterns. Theoretically, the individual preferences of elected <p> representatives may impact public expenditure if full policy commitment is not feasible. To <p> empirically...</p></p></p>

Due to underlying technological and organizational differences, industries differ <p> in their need for external finance. Since services provided by the financial sector <p> are largely immobile across countries, the pattern of industrial specialization <p> should be influenced by the degree of financial...</p></p></p>

This paper presents a new market failure in the decision on educational type in higher education. Individuals choose types of education with different degrees of specialization. Labor market transformation makes some individuals opt for a non-specialized education type that broadens the future...

This paper examines the importance of the ability of high-educated individuals on the growth rate. I consider two sources of heterogeneity among individuals: ability and consumption value of education. The latter is assumed to depend on family background and will thus generate different ability...

The paper combines optimal taxation theory with human capital theory and develops a theoretical model with endogenous wages and education decision, in which redistributive policy experiments are carried out and assessed. It is argued that general equilibrium effects of labor income taxation on...