In: Economic Inquiry, 2016, vol. 54, no. 3, p. 1519-1540
We study the impact of communication on behavior in a two-stage coordination game with asymmetric payoffs. We test experimentally whether individuals can avoid a head-to-head confrontation by means of coordinated strategies. In particular we analyze whether and how quickly a conflict-avoidance take turn strategy can emerge. First, our results show that players learn to solve the conflict by...
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In: Social Choice and Welfare, 2018, vol. 51, p. 681-716
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 configuration...
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In: Journal of Urban Economics, 2010, vol. 68, no. 2, p. 205-214
This paper compares the impact of two equalization transfer schemes on regional budgetary choices: a gross equalization scheme, where ex-post transfers to regions are financed from federal tax revenues, and a net equalization scheme, where region- to-region ex-post transfers allocated by the federal government are self-financed. The net equalization scheme reduces ex-post federal intervention...
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In: Scandinavian Journal of Economics, 2020, vol. 122, no. 4, p. 1575-1605
This paper explores how globalization influences the decision of governments to rescue inefficient domestic firms when bailouts affect firms’ markups. We develop a model of international trade where immobile domestic enterprises (DOEs) compete with foreign enterprises (FOEs) in an oligopolistic market. The decision to bail out DOEs leads to lower corporate tax revenues if FOEs are immobile...
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In: International Tax and Public Finance, 2010, vol. 17, p. 479-500
We study the impact of public good spillovers on tax competition between two imperfectly integrated countries with different levels of productivity. We show that international public good spillovers, by reducing the tax gap between countries, strengthen the agglomeration of firms in the most productive country. Then we carry on a welfare analysis. We first assume that governments are engaged...
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In: Public Choice, 2008, vol. 137, p. 57-80
This paper aims at testing whether there exist spending interactions between French municipalities by estimating a dynamic panel data model. Our results suggest that there are some interactions between neighbouring municipalities as regards primary and investment expenditures. A positive relationship between municipalities’ wage bill and unemployment rates is likely to stress a rise of...
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In: Social Choice and Welfare, 2020, vol. 55, p. 453-475
Our paper presents a model of decentralized leadership with fiscal equalization and imperfect trade liberalization. The degree of trade integration (reflected by trade costs) turns out to have an effect on both state corporate taxes and ex-post vertical equalization transfers. Our main results are the following: when public goods are highly valued by the citizens of the federation, ex post...
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In: Swiss Journal of Economics and Statistics, 2018, vol. 154, no. 1, p. 1-18
The aim of this paper is to present a review of the legal, theoretical, and empirical aspects of secessions from an economic perspective. This survey provides interesting insights into recent events such as the Brexit and the threat of secession made for instance by Scotland and Catalonia. International law does not grant a general right to secede, nor does it forbid secession. Furthermore,...
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In: European Economic Review, 2013, vol. 61, p. 153-168
With a market entry game inspired by Camerer and Lovallo (1999), we study the attitudes of junior and senior employees towards strategic uncertainty and competition. Seniors exhibit higher entry rates compared to juniors, especially when the market capacity is not too low or when earnings from entry depend on relative performance. This difference persists after controlling for attitudes...
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In: Journal of Industrial and Business Economics, 2021, vol. 48, p. 53-75
This article investigates whether the implementation of asymmetric carbon pricing policies leads to carbon leakage. We first present the theoretical mechanisms behind carbon leakage. Secondly, we conduct a review of the existing empirical results of carbon leakage. We focus on the competitiveness channel and therefore rely on papers analysing the effects of asymmetric carbon prices on both...
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