Economic theory predicts that outsourcing public services to private firms will reduce costs, but the effect on quality is ambiguous. We explore quality differences between publicly and privately owned ambulances in a setting where patients are as good as randomly assigned to ambulances of...

In an investment contest for environmental policy, polluters and victims ofpollution invest in an increase of their marginal benefits of pollution and environmentalquality, respectively. These investments influence time-consistent environmental policy...

The interpretation of the correlation between cash flow and investment is highly controversial. Some argue that it is caused by financial constraints, others by the correlation between cash flow and investment opportunities that are not properly measured by Tobin’s Q...