This paper uses a unique data set on more than 600,000 mortgage contracts to estimate a credit supply function which allows for risk-heterogeneity. Non-linearity is modelled using quantile regressions. We propose an instrumental variable approach in which changes in the tax treatment of housing...

The question of how much governments should spend on social programs generally, or safety nets in particular, is of great obvious interest to policymakers but is extremely difficult to address empirically. The approach in this paper differs from others by assuming that what governments can...

This paper develops a simple model to analyze how a lack of political competition may lead to policies that hinder economic growth. We test the predictions of the model on panel data for the US states. In these data, we find robust evidence that lack of political competition in a state is...

Investments in fiscal capacity?economic institutions for tax compliance?are an important feature of economic development. This paper develops a dynamic model to study the evolution of fiscal capacity over time. We contrast a social planner's investment path with politically feasible paths. Three...

This chapter develops a unified analytical framework, drawing on and extending the existing literature on the subject, for studying the role of property rights in economic development. It addresses two fundamental and related questions concerning the relationship between property rights and...

This paper argues that the possibility of bailouts to financial intermediaries distorts the supply price of capital and creates an argument for taxing financial bonuses separately from other sources of income. We develop a model of financial contracting where intermediaries compete for workers...

This paper discusses a theoretical framework to study the issues of competition and incentives without relying on the standard profit-orientated "market" model in the context of the debates about public service reform in the UK. It uses the idea that the production of public services coheres...