cannot always be compensated. A firm can invest in safety to reduce the likelihood of accidents. The firm's investment is … increasing prevention. We determine the investment in safety under No Liability, Strict Liability and Negligence, and compare it … the firm's behavior. An experiment tests the theoretical predictions. In line with theory, Strict Liability and Negligence …

cannot always be compensated. A firm can invest in safety to reduce the likelihood of accidents. The firm's investment is … increasing prevention. We determine the investment in safety under No Liability, Strict Liability and Negligence, and compare it … the firm's behavior. An experiment tests the theoretical predictions. In line with theory, Strict Liability and Negligence …

location incentives to attract investment. The use of tax incentives is a paradox, whereby fiscally strained governments offer … investment decisions of businesses. In this paper we construct a formal model of firm specific tax incentives that focuses on how … these incentives to take credit for investment flowing into their districts …

test Besley and Ghatak's (2001) public-good version of the Grossman-Hart-Moore property rights theory. Consider two parties … party is the investor. While our experimental results provide support for the Grossman-Hart-Moore theory, they cast some …