I thank Marius Brülhart, Dirk Foremny, Floris Zoutman, Miguel Almunia, Hans Hvide, Gabriella Massenz, Cova Machicado, Jakob Miethe, Joacim Tåg, Jacob Lundberg, Johan Orrenius, Ragnhild Schreiner, Ole-Andreas Elvik Næss, Daniel Waldenström, Gisle Natvik, Karl Schulz, Isabel Micó - Millán (discussant), and seminar and conference participants at the Nordic Public Policy Symposium, the Research Institute for Industrial Economics (IFN) in Stockholm, Ludwig Maximilians Universität (LMU), BI Norwegian Business School, and the Madrid-Barcelona Workshop on Public Economics for helpful comments and discussions. The views expressed herein are those of the author and do not necessarily reflect the views of the National Bureau of Economic Research.