We assume a population of infinitely-lived households of the economy split into two groups : one with a high discount factor (the patient) and one with a low one (the impatient). The environmental quality is deteriorated by firm's polluting emissions. The governmental policy consists in...

This paper presents a political economy approach to payroll tax competition between countries adopting different systems of social insurance.

Using the spatial theory of voting, this paper describes an institutional structure where there are two branches of the government: the executive, elected by plurality rule, and the legislative elected by proportional rule. The resulting policy outcome is described through a compromise between...

Purely non-cooperative principles, as itereted dominance and backward induction, explain divided government.

Theoretical models of government formation in political science usually assume that the head of state in non-strategic. In this paper, we analyze the power of an agenda setter who chooses the order in which players are recognized to form coalitions in simple games.

The Atkinson-Stiglitz Theorem shows that with weakly separable preferences, differential commod- ity taxes are not needed if an optimal nonlinear income tax is imposed. Redistributive objectives can be achieved with the income tax alone even if goods differ considerably in their income...

In this paper we analyze the effects of an environmental policy on the diffusion of a clean technology in an economy where firms compete on the output market. We show that the share of adopting firms is non-monotonic with the stringency of the environmental policy, and that the adoption of the...

This paper examines the impact that uncertainty over economic growth may have on global energy transition and CO2 prices. We use a general-equilibrium model derived from MERGE, and define several stochastic scenarios for economic growth. Each scenario is characterized by the likelihood of a...

We model a non-cooperative energy tax setting game amongst countries who join an international market in which firms trade emission permits. Countries can auction a share of their permit endowment and issue the remainder for free to a representative firm. Each country's regulator has a double...

This paper studies the design of redistributive policies between and within the member countries of an economic union.