This paper tests a key theoretical prediction of public finance, that redistribution discourages the participation of productive individuals. Specifically, I use a longitudinal data set to test whether and to what extent the intensive redistribution practiced by Israeli kibbutzim encourages exit of more productive individuals and entry of less productive ones. The findings support the theoretic...

On the Consequences of the US Withdrawal from the Kyoto/Bonn Protocol* The US decision not to ratify the Kyoto Protocol and the recent outcomes of the Bonn and Marrakech Conferences of the Parties has important implications for both the effectiveness and the efficiency of future climate policies. Among these implications, those related with technical change and with the functioning of the inter...

Equality under Threat by the Talented: Evidence from Worker-Managed Firms Are high-ability individuals more likely to quit egalitarian regimes? Does the threat of exit by talented individuals restrict the redistributive capacity of democratic organizations? This paper revisits that long-standing debate by analyzing the interplay between compensation structure and quit behavior in the distinct y...

This article adds technology choice to a free-entry Cournot model with linear demand and constant marginal costs. Firms can choose from a discrete set of technologies. This simple framework yields non-existence of equilibrium, existence of multiple equilibria and equilibria in which ex-ante identical ̄rms choose di®erent technologies as possible outcomes. I provide a full characterization of th...