In this paper, we take up the question why a group of sovereign countries is willing to form a federation even if residents of the high-income region suspect potential immigrants to be net beneficiaries of the tax and transfer system. We argue that income uncertainty alone cannot satisfactorily...

Eine theoretische Analyse beleuchtet die strategische Investitionsentscheidung zweier Länder in die Ausbildung ihrer Abiturienten im Kontext von freier Studienortwahl und gebührenfreiem Studium. Die freie Inanspruchnahme des Bildungsangebots durch Abiturienten anderer Länder verursacht eine...

Although it is well known that Markov process theory, frequently applied in the literature on income convergence, imposes some very restrictive assumptions upon the data generating process, these assumptions have generally been taken for granted so far. The present paper proposes, resp. recalls...

We analyze the optimal regional pattern of public employment in an information-constrained second-best redistribution policy showing that regionally differentiated public employment can serve as an expenditure side tagging device, bypassing or relaxing the equity-efficiency trade-off. The...