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Trickle-Down Ethnic Politics: Drunk and Absent in the Kenya Police Force (1957-1970)

By Oliver Vanden Eynde, Patrick M. Kuhn, and Alexander Moradi

American Economic Journal: Economic Policy, August 2018

How does ethnic politics affect the state's ability to provide policing services? Using a panel of administrative personnel data on the full careers of 6,784 police officers, we show how the rise of ethnic politics around Kenya's independence influenced p...

Asset Bubbles and Credit Constraints

By Jianjun Miao and Pengfei Wang

American Economic Review, September 2018

We provide a theory of rational stock price bubbles in production economies with infinitely lived agents. Firms meet stochastic investment opportunities and face endogenous credit constraints. They are not fully committed to repaying debt. Credit constrai...