In this paper, we explore the relationship between an equitable distribution of the cost shares in cooperative public good provision and the core property of Pareto-optimal allocations. Core allocations do not only fulfil an important stability condition but are also the only promising...

In this paper, we analyse how the prospect of international negotiations over transboundary pollution shapes intra-country transfer schemes when the governments of the countries' polluting regions are in charge of environmental policy and negotiations. Federal governments can implement...

At borders between poor and rich countries, huge service price differentials could be exploited to mutual benefit, offering better-paid job opportunities to the poor as well as better shopping opportunities to the rich. However, cross-border shopping is often limited by the substantial...

This paper presents a model of two countries competing for a pool of students from the rest of the world (ROW). In equilibrium, one country offers high educational quality for high tuition fees, while the other country provides a low quality and charges low fees. The quality in the high quality...

In this note, we show that labour market integration can be a double-edged sword. In the presence of local human capital externalities, integration and the ensuing agglomeration of skilled labour can cause a decline in human capital and the total wage sum (net of education costs). In particular,...

We analyse optimal environmental policies in a market that is vertically differentiated in terms of the energy efficiency of products. Considering energy taxes, subsidies to firms for investment in more eco-friendly products, and product standards, we are particularly interested in how...

This paper analyses a political force that can cause an initial expansion of public spending on higher education and an ensuing decline in subsidies per student: the increase in the number, and thus voting power, of skilled parents. The rise of the skilled class leads to a majority for an...

In this note, we present a novel channel for a brain gain. Students from a developing country study in a developed host country. A higher permanent migration probability of these students appears to be a brain drain for the developing country in the first place. However, it induces the host...

In this paper, we analyse the implications of labour market integration in a two-region model with local human capital externalities and congestion eects. We show that integration can be a double-edged sword. Integration and the ensuing agglomeration of skilled labour can reduce 'real' income in...