We extend the basic tax evasion model to a multi-period economy exhibiting sustained growth. When individuals conceal part of their true income from the tax authority, they face the risk of being audited and hence of paying the corresponding fine. Both taxes and fines determine individual saving...

This paper studies the stability of a finite local public goods economy in horizontal differentiation, where a jurisdiction's choice of the public good is given by an exogenous decision scheme. In this paper, we characterize the class of decision schemes that ensure the existence of an...

In this paper, we study the determinants of political myopia in a rational model of electoral accountability where the key elements are informational frictions and uncertainty. We build a framework where political ability is ex-ante unknown and policy choices are not perfectly observable. On the...

We study the social, demographic and economic origins of social security. The data for the U.S. and for a cross section of countries suggest that urbanization and industrializa- tion are associated with the rise of social insurance. We describe an OLG model in which demographics, technology, and...

We examine the interactions between individual behavior, sentiments and the social contract in a model of rational voting over redistribution. Agents have moral "work values". Individuals' self-esteem and social consideration of others are endogenously determined comparing behaviors to moral...

This paper formalizes in a fully-rational model the popular idea that politicians perceive an electoral cost in adopting costly reforms with future benefits and reconciles it with the evidence that reformist governments are not punished by voters. To do so, it proposes a model of elections where...

Moral values influence individual behavior and social interactions. A specially significant instance is the case of moral values concerning work effort. Individuals determine what they take to be proper behaviour and judge the others, and themselves, accordingly. They increase their esteem -and...

En el presente trabajo se avanzan una serie de recomendaciones para la reforma del sistema de financiación de las comunidades autónomas de régimen común. La primera de ellas tiene que ver con la estructura del sistema y con el reparto de recursos entre regiones. El resto se centran en...

This paper argues that the current Spanish system of regional financing does not adequately respect the principles of equality, autonomy, responsibility and transparency that should guide its design. It also advances a series of recommendations for the reform of the system that can be classified...

El pasado mes de julio el Ministerio de Hacienda y Administraciones Públicas hizo pública la liquidación del sistema de financiación de las comunidades autónomas de régimen común correspondiente a 2010, que marca la madurez del nuevo modelo acordado en 2009. En el presente trabajo se...