"Boomers without Borders" would be an amazing title for this paper.
Portugal quadrupled its number of foreign retirees by offering them 10 years of income tax-free retirement. Some countries (e.g., Finland) responded by taxing pensions at the source.
Just posted updated version of our DID textbook! We now have drafts of all chapters, including the one on general designs! Now you can tell your friends still on X that they are DID-outdated :-) Happy easter for those of you that celebrate it. papers.ssrn.com/sol3/papers....
Neither algo guarantees a NE. However, we looked into this and (almost) won the lottery: Only a few entrants want to switch locations. Most of Finland was in a NE in the resulting market structure. We don't exactly know how and why. More work needed, if we find the time.
We call it "backwards SME" (BSME). Same equilibrium conditions, way faster. Dumb idea, but kind of brilliant. Hope others find it useful too.
We first tried the "sequential myopic entry" (SME) algorithm from Seim & Waldfogel (AER 2013), but it was too slow. So we ran it backwards: start with full entry and let firms exit. Surprisingly, it worked.
Our CEPR wp on entry regulation in the Finnish pharmacy market is now out. Solving an entry game with 300k+ representative consumers and 4k+ potential locations is slow—even on a good server, which we didn’t have.
#econsky #IndustrialOrganization
cepr.org/publications...
