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IEB

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  • 2010/14: On the political economy of tax limits

    Stephen Calabrese, Dennis Epple

    We study the political economy of state limitations on the taxing powers of local governments, investigating the effects of such restriction on housing markets, community composition, and types of taxes and expenditures undertaken by local governments. We characterize equilibrium when voters choose values of multiple policy (tax and expenditure) instruments,...

    2010/13: Which firms want PhDs? The effect of the university-industry relationship on the PhD labour market

    José García-Quevedo, Francisco Mas-Verdú, Jose Polo-Otero

    PhD graduates hold the highest education degree, are trained to conduct research and can be considered a key element in the creation, commercialization and diffusion of innovations. The impact of PhDs on innovation and economic development takes place through several channels such as the accumulation of scientific capital stock, the...

    2010/12: Venture capital and innovation at the firm level

    Pere Arqué Castells

    This paper studies the relationship between venture capital (VC) and innovation using a self-collected dataset containing 119 innovative, VC-funded firms and 164,486 controls that operate in Spain. Probit model estimates indicate that firms that have applied for at least one patent are significantly more likely to obtain VC investments. However,...

    2010/11: Fiscal federalism and electoral accountability

    Toke S. Aidt, Jayasri Dutta

    We study the efficient allocation of spending and taxation authority in a federation in which federal politicians are exposed to electoral uncertainty. We show that centralization may, but need not, result in a loss of electoral accountability. We identify an important asymmetry between positive and negative externalities and show that...

    2010/10: Exploring educational mobility in Europe

    Antonio Di Paolo, Josep Lluís Raymond, Jorge Calero

    This paper is concerned with the investigation of the intergenerational mobility of education in several European countries and its changes across birth cohorts (1940-1980), using a new mobility index that considers the total degree of mobility as the weighted sum of mobility with respect to both parents. Moreover, this mobility...

    2010/09: Fiscal equalization and political conflict

    Maria Cubel

    In this paper we analyze the political viability of equalization rules in the context of a decentralized country. In concrete terms, we suggest that when equalization devices are perceived as unfair by one or more regions, political conflict may emerge as a result. Political conflict is analysed through a non...