The impact of political institutions on policy outcomes has gained much attention in the literature over the last years. The aim of this paper is to test whether the impact of constitutions on economic outcomes is direct. By introducing citizens' political participation, rather than politicians'...

This paper proposes a sequential merger formation game with cost synergies to study how trade policy can influence firms' choice between domestic and cross-border mergers in an international Cournot oligopoly. We find that the equilibrium market structure depends heavily on: (i) the level of...

Many types of economic and social activities involve significant behavioral complementarities (peer effects) with neighbors in the social network. The same activities often exert externalities that cumulate in stocks affecting agents' welfare and incentives. For instance, smoking is subject to...

The paper studies the impact of ethnic diversity on social participation of young people. We first propose a theoretical model in which the agents choose between structured and unstructured social activities by taking into account the ethnic composition of the groups they join. We test our...