We present a network model of the interbank market in which optimizing risk averse banks lend to each other and invest in non-liquid assets. Market clearing takes place through a tâtonnement process which yields the equilibrium price, while traded quantities are determined by means of a...

We estimate the Feldstein-Horioka equation for the period 1960-2012 and find structural breaks that coincide with the introduction of the European single market in 1993, the introduction of the euro in 1999 and the financial crisis in 2008. The results suggest that the correlation between...

This paper argues that the pace to return to work after childbirth is not independent of family values. I evaluate the effect of a parental leave policy reform in Germany in 2007-aimed at incentivizing an earlier return to work - on the return to work of mothers who hold different family values....

Many experts claim that the incidence of suicide attacks is driven by religious cleavages. To test this hypothesis, we investigate whether the total number of suicide attacks per violent conflict or the annual number of suicide attacks per country is associated with simmering religious...

Large-scale land acquisitions often take place in developing countries which are also known for their corruption-friendliness caused by weak institutional frameworks. We hypothesize that corruption indeed leads to more land deals. We argue that corrupt elites exploit poor institutional setups...

This paper investigates the role of firm productivity in drawing firm boundaries in global sourcing. Our analysis focuses on how productivity affects the allocation of ownership rights between the headquarter of a firm and an intermediate input supplier (vertical integration vs. outsourcing), as...

We study the co-existence of two community-based institutions for fisheries management in Benin: a traditional institution embedded in the Voodoo religion and a recent secular institution in the form of fishing committees. Using household survey data on fishing activities, we find that rules of...

This paper investigates how legal cannabis access affects student performance. Identification comes from an exceptional policy introduced in the city of Maastricht which discriminated legal access based on individuals’ nationality. We apply a difference-in-difference approach using...

How do taxes in the financial sector affect economic outcomes? We analyze a simple general equilibrium model with financial intermediation. We formalize a trade-off between tax policies that burden the owners of banks and tax policies that burden households. We also study the implications of the...

In the absence of financial frictions, the purpose of thin capitalization rules is to limit multinational firms’ possibilities of engaging in tax planning via debt shifting. This paper analyzes the effects of thin capitalization rules in the case where firms have limited access to external...