We propose a theory of tax centralization and inter governmental grants in politico-economic equilibrium. The cost of … the local level. This renders the degree of tax centralization and the tax burden determinate even if none of the …

We propose a theory of tax centralization in politico-economic equilibrium. Taxation has dynamic general equilibrium …

I analyze how lack of commitment affects the maturity structure of sovereign debt. Governments balance benefits of … default induced redistribution and costs due to income losses in the wake of a default. Their choice of short- versus long …

debt as a means to i) deliver intergenerational transfers or ii) smooth tax distortions. We find that certain politico …

policy. The model predicts population ageing to lead to larger social security systems, but eventually lower benefits per … retiree. Under realistic parameter values, it predicts a social-security tax rate close to the actual one, but higher than the … Ramsey tax rate. Closed-form solutions for the case with endogenous labor supply, tax distortions, and multiple policy …