We consider the many-to-many two-sided matching problem under a stringent domain restriction on preferences called the max-min criterion. We show that, even under this restriction, there is no stable mechanism that is weakly Pareto efficient, strategy-proof, or monotonic (i.e. respects...

We show that federalism will lead to higher economic growth. We present a model of endogenous growth where government services, funded by income and capital taxes, are a component of production. In this model a decentralized government will choose tax policy to maximize economic growth, while a...

We study the effect of different school choice mechanisms on schools' incentives for quality improvement. To do so, we introduce the following criterion: A mechanism respects improvements of school quality if each school becomes weakly better whenever that school improves and thereby becomes...

In the past twenty-five years, derivatives markets have grown exponentially. Large, modern derivatives markets increasingly enable investors to hold economic interests in corporations without owning voting rights, and vice versa. This leads to both empty voters — investors whose voting...

We study how trade protection varies with the electoral rules for legislative representation. In particular, we investigate different hypotheses about why trade policy differs between countries with legislatures elected by a plurality election rule in single member constituencies and...

This paper characterizes the consequences of introducing the public provision of intergenerational goods to the elderly in a model with endogenous fertility. With exogenous fertility, it has been shown that the government can mandate the first-best outcome by simply imposing the socially optimal...

We study the effect of different school choice mechanisms on schools' incentives for quality improvement. To do so, we introduce the following criterion: A mechanism respects improvements of school quality if each school becomes weakly better off whenever that school becomes more preferred by...

This paper exploits exogenous variation in the natural topography of the United States to estimate the causal impact of inter-jurisdictional competition on income growth. We find that doubling the number of county governments in a metropolitan area leads to a 17% increase in the average annual...