Showing 1 - 10 of 70
Persistent link: https://www.econbiz.de/10011091655
Abstract: When it comes to economic reforms in developing countries, many economists agree on broad objectives (such as fostering outward orientation). Broad objectives, however, can be pursued in many di¤erent ways, and policy experimentation is often indispensable for learning which...
Persistent link: https://www.econbiz.de/10011090351
The modern world is complex and difficult to understand for voters, who may hold beliefs that are at variance with reality. Politicians face incentives to pander to voters' beliefs to get reelected. We analyze the welfare effects of this pandering and show that it entails both costs and...
Persistent link: https://www.econbiz.de/10011091298
This paper proposes that reforms by vote-seeking governments and the existence of reform-adverse voters are logically compatible. This results from a commitment problem on the part of voters. Due to economic voting voters cannot credibly commit to reelect a non-reforming government during a...
Persistent link: https://www.econbiz.de/10011092149
This paper considers the political economy of the mix of profit, investment and saving taxation in a small open economy … where agents generally differ in their shares of profit and other income.In this setting, capital income taxation can have … constellations of profit, investment and saving taxes can arise.The paper, for instance, can explain why distorting saving taxation …
Persistent link: https://www.econbiz.de/10011090707
Persistent link: https://www.econbiz.de/10011092588
We develop a model of human capital formation with endogenous labor supply and heterogeneous agents to explore the optimal level of education subsidies along with the optimal progressive schedule of the labor income tax and optimal capital income taxes.Subsidies on education ensure efficiency in...
Persistent link: https://www.econbiz.de/10011091366
optimal non-linear income taxation.We find that the optimal search subsidy (i.e. the difference between the in-work benefit …
Persistent link: https://www.econbiz.de/10011092433
-skilled individuals in the presence of labour income taxation. Whether such a subsidy can be Paretoimproving depends crucially on the …
Persistent link: https://www.econbiz.de/10011091270
I introduce a microfounded model of campaign finance with office-seeking politicians, a continuum of voters, and a large number of heterogeneous lobbies. Lobbies make contributions to politicians according to a common agency framework. Politicians use contributions to finance their electoral...
Persistent link: https://www.econbiz.de/10011092621