One of the main features of health insurance is moral hazard, as defined by Pauly (1968); people face incentives for excess utilization of medical care since they do not pay the full marginal cost for provision. To mitigate the moral hazard problem, a coinsurance can be included in the insurance...

If women make different economic decisions than men on average, then an increase in women's influence in the political and economic spheres of society might change economic outcomes. In this note, we focus on the impact of female enfranchisement on fiscal policy outcomes. We present a simple...

This paper studies how schooling admission tests affect economic performance in an economy where individuals are endowed with both academic and non academic abilities and both abilities matter for labour productivity. We develop a simple model with selective government held schools, where...

This paper studies how schooling admission tests affect economic performance in an economy where individuals are endowed with both academic and non academic abilities and both abilities matter for labor productivity. We develop a simple model with selective government held schools, where...

So wie die Währung im Wirtschaftssystem die Funktion eines "Wertmaßstabes" innehat, können einheitliche Leistungsüberprüfungen im Schulsystem als Bewertungsmaßstab fungieren, der zur Überwindung von Informationsasymmetrien beiträgt und opportunistisches Verhalten dezentraler...

Earlier studies estimating the demand for local public services by means of the median voter model have typically assumed exogenous regressors and static set-ups. Furthermore, the commonly used log-linear specification of the demand function has in most cases not been supported by a well-defined...

This paper studies the strategic foundations of the Representative Voter Theorem (Rothstein, 1991), also called the second version of the Median Voter Theorem. As a by-product, it also considers the existence of non-trivial strategy-proof social choice functions over the domain of...

Legislation affects corporate governance and the return to human and financial capital. We allow the preference of a political majority to determine both the governance structure and the extent of labor rents. In a society where median voters have relatively more at stake in the form of human...