From the perspective of redistributing income from rich to poor, equalizing intergovernmental grants are bound to have some perverse effects. For such grants, although transfering income from wealthy to poor on average, will inevitably result in some income transfers from poor individuals who...

This article presents a formal model of policy decision-making in an institutional framework of separation of powers in which the main actors are pivotal political parties with voting discipline. The basic model previously developed from pivotal politics theory for the analysis of the United...

From the perspective of redistributing income from rich to poor, equalizing intergovernmental grants are bound to have some perverse effects. For such grants, although transfering income from wealthy to poor on average, will inevitably result in some income transfers from poor individuals who...

This paper proposes an argument that explains incumbency advantage without recurring to the collective irresponsibility of legislatures. For that purpose, we exploit the informational value of incumbency: incumbency confers voters information about governing politicians not available from...

This paper presents a tractable dynamic general equilibrium model that can explain cross-country empirical regularities in geographical mobility, unemployment and labor market institutions. Rational agents vote over unemployment insurance (UI), taking the dynamic distortionary effects of...

This paper analyzes the current trend towards firms’ self-regulation as opposed to the formal regulation of a negative externality. Firms respond to increasing activism in the market(conscious consumers that take into account the external effects of their purchase) by providing more socially...

We construct a model in which the ambiguity of candidates allows them to increase the number of voters to whom they appeal when voters have intense preferences for one of the alternatives available. An ambiguous candidate may offer voters with different preferences the hope that their most...

Many have observed that political candidates running for election are often purposefully expressing themselves in vague and ambiguous terms. In this paper we provide a simple formal model of this phenomenon. We model the electoral competition between two candidates as a two--stage game. In the...

Why do public-sector workers receive so much of their compensation in the form of pensions and other benefits? This paper presents a political economy model in which politicians compete for taxpayers' and government employees' votes by promising compensation packages, but some voters cannot...

Many of the attributes that make a good "socially responsible" are credence attributes that cannot be learned by consumers either through search or experience. Consumers aggregate information about them from several channels (media, advertisement, NGOs, etc.). Since these sources may send...