Journal of the European Economic Association 2018 Journal of the European Economic Association (JEAA) NC 27513, USA. E-mail: [email protected]. (ISSN (1542-4766) is published six times a year Tel (and answerphone outside normal working (February, April, June, August, October, and December) hours): 800 852 7323 (toll-free in USA/Canada). by Oxford University Press, Oxford, UK, for the Fax: 919 677 1714. In Japan, please contact: Journals Editor European Economic Association. Customer Services, Oxford Journals, Oxford University Press, Tokyo, 4-5-10-8F Shiba, Minato-ku, Available online: is journal is available online at Juuso Välimäki Aalto University School of Business [email protected] Tokyo 108-8386, Japan. Tel: 0813 5444 5858. Oxford Journals Online. Visit https://academic.oup. Fax: þ81 3 3454 2929. Email: [email protected]. Co-Editors com/journals to search the articles and register for table of contents e-mail alerts. https://academic.oup.com/jeea. Methods of payment. Payment should be made: by cheque (to Oxford University Press, Cashiers Offi ce, Paola Giuliano UCLA Anderson School of Management [email protected] JEEA is indexed and/or abstracted in: EconLit, Journal Great Clarendon Street, Oxford, OX2 6DP, UK); by Dirk Krueger University of Pennsylvania [email protected] of Economic Literature and Social Sciences Citation bank transfer [to Barclays Bank Plc, Oxford Offi ce, Claudio Michelacci EIEF, Rome [email protected] Index, (SSCI). Oxford (bank sort code 20-65-18) (UK); overseas Nicola Pavoni Bocconi University, Milan [email protected] Information for subscribers: A subscription to Journal only Swift code BARC GB22 (GB£ Sterling Account Giovanni Peri University of California, Davis [email protected] of the European Economic Association comprises 6 no. 70299332, IBAN GB89BARC20651870299332; Imran Rasul University College London [email protected] issues. All prices include postage, and for subscribers US$ Dollars Account no. 66014600, IBAN Associate Editors Downloaded from https://academic.oup.com/jeea/issue/16/1 by guest on 29 September 2021 outside the UK delivery is by Standard Air. GB27BARC20651866014600; EU EURO Account no. 78923655, IBAN GB16BARC20651878923655]; Annual subscription rate: (vol. 16, February, Ufuk Akcigit Gabriel Felbermayr Giacomo Ponzetto or by credit card (Mastercard, Visa, Switch or Ameri- April, June, August, October, and December 2018) can Express). Michael L. Anderson Nicola Fuchs-Schuendeln Devin G. Pope Institutional: Print edition and site-wide online Marina Azzimonti Alexander Gelber Nancy Qian access: £633/$926/€672. Print edition only: Journal of the European Economic Association (ISSN Oriana Bandiera Bård Harstad Dominic Rohner £607/$888/€644. Site-wide online access only: (1542-4766) is published six times a year by Oxford Lori A. Beaman Robert C. Johnson Marzena J. Rostek £521/$762/€553. Please note: US$ rate applies to University Press, Oxford, UK and distributed in the Javier Bianchi Alejandro Justiniano Julien Sauvagnat US & Canada, Euros applies to Europe, UK£ applies to USA by Central Mailing Services c/o UKP Worldwide, Luigi Bocola Șebnem Kalemil-Özcan Philipp Schmidt-Dengler UK and Rest of World. ere may be other subscrip- 1637 Stelton Road B2, Piscataway, NJ 08854. e Alessandro Bonatti Kory Kroft Johnannes F. Schmieder tion rates available, for a complete listing please visit: US annual subscription price is $612. Airfreight and Alessandra Bonfiglioli Thibaut Lamadon Joshua Schwartzstein www.oxfordjournals.org/our_journals/ije/access_ mailing in the USA by agent named Central Mailing Leonardo Bursztyn Paola Manzini Vasiliki Skreta purchase/price_list.html Services c/o UKP Worldwide, 1637 Stelton Road Davide Cantoni Michel Marechal Zheng Song B1-2, Piscataway, NJ 08854. Periodicals Postage Paid Full prepayment, in the correct currency, is required for at Piscataway, NJ and additional mailing offi ces. Arun G. Chandrasekhar Karel Mertens Charles D. Sprenger all orders. Orders are regarded as fi rm and payments Katie Coffman Kurt Mitman Vincent Sterk are not refundable. Subscriptions are accepted and US Postmaster: send address cages to the International Giacomo De Giorgi Pauli Murto Roland Strausz entered on a complete volume basis. Claims cannot be Aff airs, Oxford University Press, Central Mailing Ser- Melissa Dell Georg Nöldeke Paolo Surico considered more than FOUR months after publication vices c/o UKP Worldwide, 1637 Stelton Road B1-2, David Dorn Guillermo Ordoñez Matthias Sutter or date of order, whichever is later. All subscriptions Piscataway, NJ 08854, and distributed in the USA by Ruben Durante Elias Papaioannou Alessandra Voena in Canada are subject to GST. Subscriptions in the Central Mailing Services c/o UKP Worldwide, 1637 Benjamin Enke Paolo Pinotti Nico Voigtländer EU may be subject to European VAT. If registered, Stelton Road B2, Piscataway, NJ 08854. e US annual Keith Marzilli Ericson Mattias Polborn Noam Yuchtman please supply details to avoid unnecessary charges. For subscription price is $934. Airfreight and mailing in subscriptions that include online versions, a proportion the USA by agent named Central Mailing Services c/o Advisory Board of the subscription price may be subject to UK VAT. UKP Worldwide, 1637 Stelton Road B1-2, Piscataway, Personal rate subscriptions are only available if payment NJ 08854. Periodicals Postage Paid at Piscataway, NJ Alberto Alesina Roger Guesnerie Ariel Rubinstein is made by personal cheque or credit card and delivery and additional mailing offi ces US Postmaster: send Olivier J. Blanchard Martin Hellwig Agnar Sandmo is to a private address. address cages to the International Aff airs, Oxford University Press, Central Mailing Services c/o UKP François Bourguignon James A. Mirrlees Thomas J. Sargent e current year and two previous years’ issues are Guillermo A. Calvo J. Peter Neary Jean Tirole Worldwide, 1637 Stelton Road B1-2, Piscataway, NJ available from Oxford Journals. Previous volumes 08854. Chris Giles John O’Sullivan John Vickers can be obtained from the Periodicals Service Company at http://www.periodicals.com/oxford. Permissions: For information on how to request html or Periodicals Service Company, 11 Main Street, permissions to reproduce articles/information from Germantown, NY 12526, USA; [email protected]. this journal, please visit: www.oxfordjournals.org/ Tel: (518) 537-4700. Fax: (518)537-5899. For further access_purchase/rights_permissions.html information, please contact: Journals Customer Digital object identifi ers (DOIs): For information on Service Department, Oxford University Press, Great DOIs and to resolve them, please visit www.doi.org. Clarendon Street, Oxford OX2 6DP, UK. E-mail: [email protected]. Tel: +44 (0)1865 353907. Printed in the UK by Bell & Bain. Fax: +44(0)1865353485. In the United States, please ISSN 1542-4766 (Print) contact: Journals Customer Service Department, ISSN 1542-4774 (Online) Oxford University Press, 2001 Evans Road, Cary, © 2018 European Economic Association JJEEA_16_1_Cover.inddEEA_16_1_Cover.indd 2 113/02/183/02/18 99:14:14 PPMM.