We present a simple model to analyse law enforcement problems in transition economies. Law enforcement implies coordination problems and multiplicity of equilibria due to a law abidance and a fiscal externality. We analyse two institutional mechanisms for solving the coordination problem. A...

Payer-driven competition has been widely advocated as a means of increasing efficiency in health care markets. The 1990s reforms to the UK health service followed this path. We examine whether competition led to better outcomes for patients, as measured by death rates after treatment following...

This study examines parents’ demand for sending their children to a public school located outside their residential school district. Using a unique data set that contains information concerning both inter-district transfers and rejections of transfer applications, I am able to identify which...

In the wake of school finance reforms that limit local tax revenue and, more recently, state budget cuts that have threatened K-12 education spending, an increasing number of schools and school districts have appealed to parents and communities for voluntary contributions to augment school...

After a decade of economic and political reforms that dramatically altered the structure of economies in Latin America, poverty and high inequality remain deeply entrenched. Integration into the global economy in the 1990s brought increased prosperity only to a small minority of households in...

In a range of settings, private firms manage peer effects by sorting agents into different groups, be they schools, communities, or product categories. This paper considers such a firm, which controls group entry by setting a series of anonymous prices. We show that private provision...

During the last two decades state funding of higher education in South Africa has decreased substantially (especially if public expenditure of HE as a percentage of GDP is used as a yardstick). HE institutions were forced to increase tuition fees and rely more on the third income stream to...

We use data on individual patients in general practices to examine whether income related inequality in self reported health differs across general practices and whether such differences are explained by characteristics of the practices. We allow for the simultaneous determination of health and...

This paper discusses the issues of inefficiency in the provision of merit goods, taking the case of public water supply in rural Kerala. The analysis has identified two source of inefficiency in the provision of merit good. First, is due to the fact that the state and its agencies autonomously...

This paper studies the market for monopolistically supplied sweepstakes. We derive equilibrium demands for fixed-prize and variable-prize sweepstakes and determine the profit maximizing prize level and payout ratio respectively. It can be profitable to offer each type of sweepstake when there...