Showing 1 - 10 of 24
We consider an economy where competing political parties alternate in office. Due to rent-seeking motives, incumbents have an incentive to set public expenditures above the socially optimum level. Parties cannot commit to future policies, but they can forge a political compromise where each...
Persistent link: https://www.econbiz.de/10011126506
Two experiments show that eliciting taxpayer preferences on government spending—providing taxpayer agency--increases tax compliance. We first create an income and taxation environment in a laboratory setting to test for compliance with a lab tax. Allowing a treatment group to express...
Persistent link: https://www.econbiz.de/10011125929
This article explores the contradictory and contested but closely interlocking efforts of NGOs and the state in planning for land reform in South Africa. As government policy has come increasingly to favor the better-off who are potential commercial farmers, so NGO efforts have been directed,...
Persistent link: https://www.econbiz.de/10011071322
The main aim of this paper is to contribute to the ongoing debate on the facets of the Greek crisis via an analysis of the changes in the institutional framework of the labour market that are introduced as a result of the EU/IMF mechanism for financial support. The paper tries to make sense of...
Persistent link: https://www.econbiz.de/10010744857
This paper presents a political economy model of inflation as a result of social conflict. Agents are heterogeneous in terms of income. Agents’ income levels determine their ability to hedge against the effects of inflation. The interaction of heterogeneous cash holdings and preferences over...
Persistent link: https://www.econbiz.de/10010745045
At the centre of politics in Britain and other countries is what is sometimes called ‘the big trade-off’ – where to strike the balance between private consumption and collective goods and social spending – and hence the sacrifices that would be entailed by the higher taxation required to...
Persistent link: https://www.econbiz.de/10010746039
The size and sign of the government spending multiplier crucially depends on how the spending is financed and how consumers respond to implied future tax increases. I investigate this issue in an estimated New Keynesian DSGE model with distortionary labor and capital taxes and, importantly, with...
Persistent link: https://www.econbiz.de/10011126036
This paper studies how monetary policy should respond to news about an oil discovery, using a workhorse New Keynesian model. Good news about future production can create a recession today under exchange rate pegs and a simple Taylor rule, as seen in practice. This is explained by forward-looking...
Persistent link: https://www.econbiz.de/10011126400
The sharp rise in household finance, both in debt and in assets, is one of the striking empirical facts about the US economy of the last two decades. But it is still not clear what caused it. Economists, both mainstream and heterodox, seek an explanation in financial market innovation and...
Persistent link: https://www.econbiz.de/10011126600
The goal of the present paper is to investigate not only the dynamics of the Greek public debt, but also what are the appropriate measures required for achieving fiscal consolidation. The empirical estimation is carried out using a macroeconomic dataset spanning the period 1980-2008 and both the...
Persistent link: https://www.econbiz.de/10010735153