We study the impact of fiscal revenue shocks on local fiscal policy. We focus on the very volatile revenues from the immovable property gains tax in the canton of Zurich, Switzerland, and analyze fiscal behavior following large and rare positive and negative revenue shocks. We apply causal...

We analyse the effect of a mandatory kindergarten for four-year-old children on mothers' labour supply in Switzerland. Since education policy is regulated on a federal level, we exploit spatial variation as well as staggered implementation. Using a difference-in-differences approach, we find an...