It is often argued that the optimal level of public good provision is below the first-best level as long as the government's expenditures have to be financed by distortionary taxes. I examine this hypothesis and show that it is correct in a representative consumer economy if (i) the public good...

Recently, it became customary to argue that environmental quality - like ordinary public consumption - is crowded out by distortionary taxation. We show that this hypothesis does not hold provided that the marginal revenue of the environmental tax is positive. In this case, under-provision of...

Due to the use of distortionary taxation, real-world economies should attain a lower level of public expenditures than one might suspect from the analysis of artificial models where lump-sum taxes are assumed to be available. The paper examines this popular hypothesis by means of the two-type...

We consider a model of a single defendant and N plaintiffs where the total cost of litigation is fixed on the part of the plaintiffs and shared among the members of a suing coalition. By settling and dropping out of the coalition, a plaintiff therefore creates a negative externality on the other...

Dieser Aufsatz beschreibt ein Optionsbewertungsexperiment zum Binomialmodell, das mit professionellen Tradern von Finanztiteln durchgeführt wurde. Die Ergebnisse dieses Experiments werden mit denen eines entsprechenden Versuchs mit Studenten verglichen. Es zeigt sich, daß die professionellen...

To investigate the influence of performance differences on donating behavior in a solidarity game we introduce a real effort task. In each three-person-group subjects are ranked according to their task performance. Since each potential winner is informed about his own rank and the potential...

We analyze a two-stage game between two heterogeneous players. At stage one, common risk is chosen by one of the players. At stage two, both players observe the given level of risk and simultaneously invest in a winner-take-all competition The game is solved theoretically and then tested by...