Xavier Freixas and Kebin Ma reexamine the classical issue of the possible trade-offs between banking competition and financial stability by highlighting different types of risk and the role of leverage. By means of a simple model, they show that competition can affect portfolio risk, insolvency risk, liquidity risk, and systemic risk in different ways.
How much should people be taxed and what should tax revenues be spent on? Surprisingly, these topics have mostly been treated in isolation in academic research. Joan Esteban and Laura Mayoral present a model that determines the consensus income tax schedule, the composition of public expenditure, and the size of government.
Migration is a given. It happens. But what effect does it have on the wages of those already living in the destination country? Joan Llull develops a new estimation technique and uses push factors and distance to investigate how wages in the United States and Canada respond to immigration.
If I call your Vodafone mobile from my Orange mobile, who should pay the cost of termination incurred by Vodafone? You, me, Orange or Vodafone? For that matter, which has the better business model – Europe with a “caller pays” system, or the US with an “everyone pays” system? Sjaak Hurkens and Angel L. López analyze an oligopoly of telecom networks to show how termination charges play a role in off-network usage and whether efficiency and profitability are achieved with current business models.
When migrants enter a new country, do they bring their family planning practices with them? Looking at birth certificate data, Libertad Gonzalez shows that some immigrant populations known to have son-biased birth ratios in their home country also have biased birth ratios in Spain.
If 1000 people were killed in conflict India, a country with a population of more than 1.2 billion inhabitants, would this have the same impact on the country as a whole as 1000 victims in Nicaragua, a country of 6 million inhabitants? The intuitive answer might be no, but this is exactly what most of the conflict literature is doing. Hannes Mueller makes a case for rethinking the approach of using a threshold of an absolute number of battle victims.