This paper examines the effect of trade integration and comparative advantage on one of a country's institutions, which in turn inuences its economic efficiency. The environment we explore is one in which a country's lower classes may revolt and appropriate wealth owned by a ruling elite. The...

This paper provides causal evidence on the importance of socioeconomic circumstances, socialization, and childhood events, in the formation of adult political behaviour and attitudes, using region-by-cohort variation in exposure to the Jewish expulsions in Nazi Germany as a quasi-experiment. We...

A recently much debated issue is why observed investment and growth rates inpoor countries are lower than traditional theory predicts. Empirical evidencesuggests that social and political instability is a major reason for thedivergence between poor and rich countries. However, there is still the...

We examine how fiscal rules influence economic growth. The results show that constitutional fiscal rules promoted growth from the Industrial Revolution until World War II (1789-1950) and also increased modern economic growth (1985-2015). To address selection on unobservables, we conduct a...

We provide evidence that political instability deteriorates economic growth. We establish this result based on panel difference-in-differences strategies and dynamic panel data models using a large sample of 180 countries, a novel geocoded dataset for 2,660 regions, and micro data for about...

We survey selected parts of the growing literature on the microeconomics of violent conflict, identifying where academic research has started to establish stylized facts and where methodological and knowledge gaps remain. We focus our review on the role of civilian agency in conflict; on wartime...

This research explores the historical roots of the division of labor in pre-modern societies. It advances the hypothesis and establishes empirically that intra-ethnic diversity had a positive effect on the division of labor across ethnicities in the pre-modern era. Exploiting a variety of...

We show that the exposure to war-related violence increases the quantity of children temporarily, with permanent negative consequences for the quality of the current and previous cohort of children. Our empirical evidence is based on Nepal, which experienced a ten year long civil conflict of...

A popular uprising in 2014, led to a revolution overthrowing the sitting president of Burkina Faso. We investigate if individuals’ risk attitudes changed due to this revolution. Specifically, we investigate the impact of the revolution on risk attitudes, by gender, age and level of education....

We show that the exposure to war-related violence increases the quantity of children temporarily, with permanent negative consequences for the quality of the current and previous cohorts. Our empirical evidence is based on Nepal, which experienced a ten year long civil conflict of varying...