Leaky-bucket transactions can be regarded as a generalization of the transfer principle allowing for transaction costs. In its most rudimentary form, leaky-bucket transactions trace out the maximum leakage of transaction costs such that a transfer still pays at the margin. Yet "to pay at the...

Leaky-bucket transactions can be regarded as income transfers allowing for transaction costs. In its most rudimentary form, leaky-bucket transactions trace out the maximum leakageʺ of transaction costs before income inequality is exacerbated, or before a welfare loss is experienced. This notion...

In this paper we present results of an experimental study on the performance of three mechanisms which are designed to deal with non-point source pollution: collective fining, random fining, and a tax-subsidy scheme. Our results show that collective and random fining schemes do not induce the...