The Impact of Within-Party and Between-Party Ideological Dispersion on Fiscal Outcomes: Evidence from Swiss Cantonal Parliaments
with Tjasa Bjedov and Thierry Madies
Public Choice, vol. 161, issue 1-2, October 2014
Working paper version
Work in Progress
“Love Thy Neighbour”? Linguistic Differences and Votes for Municipal Secessions in Canada
Revise and Resubmit
Abstract: This paper studies the choice of municipal borders by voters in a setting with cohabiting linguistic communities. It takes advantage of unique data from referendum results in the Canadian province of Quebec in 2004, which allows a direct investigation of voter preferences. I find that differences in income and language, as well as the degree of economic integration, affect the likelihood of a secession. Moreover, I find that voters are willing to pay additional taxes to live in their jurisdiction of choice. Finally, my results also suggest that identification to one’s linguistic group plays a role in border choice.
Does Decentralization of Decisions Increase the Stability of Large Groups?
with Tjasa Bjedov, Thierry Madies, and Marie-Claire Villeval
Revise and Resubmit
Abstract: Using a laboratory experiment with nested local and global public goods, we analyze the stability of global groups when individuals have the option to separate, according to the degree of decentralization of decision-making. We show that increasing the number of decisions made at the local level within a smaller group reduces the likelihood that individuals vote in favor of a break-up of the global group. Voting for a break-up of the global group is more likely when global group members are less cooperative and local group members are more cooperative. Reinforcing local group identity has no impact on votes.
Does Market Size Matter for Charities?
with Carlo Perroni, Kimberley Scharf, and Janne Tukiainen
Revise and Resubmit
Abstract: We analyze implications of market size for market structure in the charity sector. While a standard model of oligopolistic for-profit competition predicts a positive relationship between market size and firm size, our analogous model of competition between prosocially motivated charities predicts no such correlation. If charities are biased towards their own provision, a positive association between market size and provider size can arise. We examine these predictions empirically for six different local charity markets. Our findings reject the hypothesis that charities pursue unbiased prosocial objectives, and suggest that increased competition in the charity sector can lead to rationalization in provision.
Effects of Municipal Mergers on Voter Turnout
with Tuukka Saarimaa and Janne Tukiainen
Abstract: We study the effects of municipal mergers on voter turnout in a difference-in-differences framework, using data from a wave of municipal mergers in Finland in 2009. Using data from two pre-merger elections and three post-merger elections, spanning a total of 17 years, we find that municipal mergers decrease voter turnout substantially in the relatively small municipalities compared to similar small municipalities that did not merge. We also find that virtually nothing happens to turnout in the municipalities that were relatively large within their merger. We also find that mergers decrease political efficacy among the voters, which may partly explain the decrease in turnout.
The Impact of Bidding Wars on the Optimal Investment Decisions of Multi-Establishment Firms
with Pierre-Henri Morand
Abstract: This paper studies the competition between regions to attract a firm’s investment. An important takeaway from earlier papers is that such bidding wars can improve welfare by allocating new plants to the regions that value them the most. By explicitly modeling endogenous investment choice as a multi-unit auction, we show that the firm strategically chooses an investment allocation different from the profit-maximising allocation. Specifically, the firm invests more and differentiates the plants, in turn increasing subsidies. Despite these distortions, such a bidding war retains the welfare-maximising properties of simpler models. In addition, it implements the optimal mechanism from the viewpoint of the firm.
Investment in Public Infrastructure and Regional Bidding Wars for Multi-Establishment Firms
with Pierre-Henri Morand
Break-Ups of Municipal Health Centre Federations: Effects on Cost, Efficiency, and Quality of Services
with Mika Kortelainen, Kalevi Luoma, and Antti Moisio
Presentations at Conferences and Seminars
Annual Meetings of the Finnish Economics Association (Turku, Finland), February 2018
Annual Congress of the IIPF (Tokyo, Japan), July 2017
Annual Meetings of the French Economics Association (Nice, France), June 2017
VATT Seminar Helsinki (Finland), February 2017
Annual Meetings of the Finnish Economics Association (Jyväskylä, Finland), February 2017
ZEW Seminar, Mannheim (Germany), September 2016
Research Seminar, Toulouse School of Economics (France), December 2015
Meetings of the Association for Public Economic Theory, at the University of Luxembourg, July 2015
Annual Meeting of the Canadian Economics Association, at Ryerson University (Toronto, Canada), May 2015
Spring Meeting of Young Economists, at Ghent University (Belgium), May 2015
Political Economy Workshop, IQSS, Harvard University, Cambridge (USA), April 2015
VATT Internal Seminar, Helsinki (Finland), October 2014
Annual Meetings of the French Economics Association, Lyon (France), June 2014
Journée d'études sur l'analyse économique du vote, Le Havre (France), March 2014
Department Seminar, University of Ottawa (Canada), September 2013
International Meeting of PhD Students, at the University of Macedonia (Thessaloniki, Greece), July 2013
PEARL Seminar, at the University of Fribourg (Switzerland), June 2013
Annual Meetings of the European Public Choice Society, at the University of Zurich (Switzerland), April 2013
Sinergia Workshop, at the University of Sankt Gallen (Switzerland), February 2013
European School for New Institutional Economics, in Corsica (France), May 2012
Annual Meeting of the Canadian Economics Association, in Quebec City (Canada), May 2010
Assembly of First Nations National Policy and Planning Forum, in Saskatoon (Canada), March 2010
Other Research Reports
The Labour Market and Economic Performance of Canada’s First Nations Reserves: The Effect of Educational Attainment and Remoteness, with Andrew Sharpe, CSLS Research Report (July 2011)
The Effect of Increasing Aboriginal Educational Attainment on the Labour Force, Output and the Fiscal Balance, with Andrew Sharpe, Jean-François Arsenault and Fraser Cowan, CSLS Research Report (May 2009)
Apprenticeship Issues and Challenges Facing Canadian Manufacturing Industries, with Andrew Sharpe and Jean-François Arsenault, CSLS Research Report (February 2008)
The Potential Contribution of Aboriginal Canadians to Labour Force, Employment, Productivity and Output Growth in Canada, 2001–2017, with Andrew Sharpe and Jean-François Arsenault (November 2007)