In this paper we investigate the twofold effect of demographics on international factor flows in a model with endogenous policy constraints on both foreign direct investment and migration. Factor price differences between industrialized and developing countries create economic incentives for...

Die wirtschaftlichen Entwicklungen rohstoffreicher Länder fallen bisweilen sehr unterschiedlich aus. Folgt man der wissenschaftlichen Literatur, steht den segensreichen Rohstofferträgen eine Reihe unerwünschter Nebenwirkungen gegenüber. So kann es im Zuge von Rohstoffexporten zu einer...

It is often argued that countries with a high population share of children and young workers should attract large capital infl ows from aging industrialized economies. However, many of these countries deter foreign investors by a high risk of creeping or outright expropriation. In this paper we...

Following the notion of skill-biased FDI flows from developed to less developed regions, high-skilled workers are likely to benefit from FDI to a larger extent. They earn a productivity advantage that potentially transfers into a skilled wage premium. This gives rise to distributional conflict...

Preventive policy measures such as bailouts often pass parliament very narrowly. We present a model of asymmetric information between politicians and voters which rationalizes this narrow parliamentary outcome. A successful preventive policy impedes the verification of its own necessity. When...