In this paper, we study the evolution of agricultural product specialisation at farm and county level from 1979 to 1997 in Spain, thus covering all the stages of the gradual implementation of the Common Agricultural Policy. We use a multiproduct version of Theil and Finizza's index of...

In markets with adverse selection, only low-quality units trade in the competitive equilibrium when the average quality of the good held by sellers is low. Under decentralized trade, however, both high and lowquality units trade, although with delay. Moreover, when frictions are small the...

In this paper, we evaluate the impact of unilateral divorce on crime. First, using crime rates from the FBI´s Uniform Crime Report program for the period 1965-1998 and differences in the timing in the introduction of the reform, we find that unilateral divorce has a positive impact on violent...

The structure of each level of government in the United States has changed over the last 200 years. Wallis (2000) has presented empirical evidence that relates the dominance of each level not to the functions government decides to undertake (the expenditures it commits to), but to the costs and...

This paper builds a theory of profit sharing between two firms in a duopoly market through which firms seek to increase their profits and, in turn, to limit the competition. We use a general model to show the direct (negative) and indirect (positive) effects of this strategy. We then focus on...

We prove that for generic plurality games with positive cost of voting, the number of Nash equilibria is finite. Furthermore all the equilibria are regular, hence stable sets as singletons.

The divergence between the willingness-to-pay (WTP) and willingness-to-accept (WTA) has resulted in two explanations. First, that this may be due to the manifestation of the endowment effect (Kahneman, Knetsch and Thaler, 1991). Second, the difference between WTA and WTP is directly related with...

We address the question of endogenous financing of the Universal Service Obligations and we compare it with the exogenous financing. A fund is created and fed through a tax firms pay. We show that the way these funds are implemented by the current regulatory regimes at work goes against the...

This paper provides a general framework for the simulation of stochastic dynamic models. Our analysis rests upon a continuity property of invariant distributions and a generalized law of large numbers. We then establish that the simulated moments from numerical approximations converge to their...

We examine firms' incentives to protect their non-cooperative R&D investments from spilling over to competitors. Contrary to most of the existing literature, we show that the lack of full appropriability can lead to an increase in R&D investments. We also show that even if protection is...