Environmental policies frequently target the ratio of dirty to green output within the same industry. To achieve such targets, the green sector may be subsidized or the dirty sector be taxed. We show that in a monopolistic competition setting, the two policy approaches have different welfare effects, depending on the design of the instrument (ad valorem versus unit instrument) and the initial situation ...
Drawing on panel data from the European Community Household Panel (ECHP), the British Household Panel Survey (BHPS) and the German Socio-Economic Panel Study (SOEP), we compare the economic performance of immigrants to Great Britain, West Germany, Denmark, Luxembourg, Ireland, Italy, Spain and Austria to that of the respective indigenous population. The unit of analysis is the individual in the household ...
Soft budget constraints (SBCs) are a persistent feature of transition economies and have been blamed for a lack of fiscal consolidation and sluggish growth. EU eastward enlargement has been conditioned on tackling SBCs. This paper analyzes such outside conditionality theoretically and empirically. First, by modeling the SBC problem as a war of attrition between the applicant countries' governments ...
