The paper provides a tractable, analytical framework to study regulatory risk under optimal incentive regulation. Regulatory risk is captured by uncertainty about the policy variables in the regulator's objective function: weights attached to profits and costs of public funds. Results are as...

SFB 649 Discussion Paper 2006-018 The Bologna Process: How student mobility affects multi-cultural skills and educational quality Lydia Mechtenberg* Roland Strausz** * Technische Universität Berlin, Germany ** Freie Universität Berlin, Germany This research...

We develop a model to analyze the determinants and effects of an endogenous imperfect transferability of human capital on natives and immigrants. The model reveals that high migration flows and high skill-transferability are mutually interdependent. Moreover, we show that high mobility within a...