Jamaican Political leaders have so frequently cried wolf over budgetary spending that voters are skeptical about talk of budgetary crises. This is unfortunate, since deficits should arouse genuine concern, particularly as their size in developing countries like Jamaica can be daunting. Yet, the...

In a tax-evasion model with profit tax, we reexamine and clarify the issues of neutrality and separability with imperfect detection of tax fraud. With this more realistic setting, we show that the profit tax is not necessarily neutral and the separability conclusion may not hold. Furthermore,...

This paper incorporates into the design of taxes a utilitarian recommendation that the State should maximize “the guaranteed happiness†of individuals. In all our arguments relative to taxes we both characterize and evaluate the Nash bargaining solution. To reach an agreement, the...

Macmillan International Economic Association Series October 2000 400 pages Description: Reciprocity is a pervasive type of social interaction in encounters, groups and organizations. Simple giving is one of the major ways of transferring goods. And others regarding social sentiments, play...

This study examines the inter-linkages between Government budget balance, and external balance for a transition economy in South East Asia – Cambodia. The empirical results of the quarterly data between 1996 and 2006, support twin deficits hypothesis that is the budget deficits do cause...

This study examines the relationship between corruption and public investment in Turkey for the annual sample period between 1975-2007, using Johansen (1988) and Johansen and Juselius (1990) cointegration analysis. The results of cointegration analysis provide an evidence of a long-run...

This paper considers a delegated common agent who produces a public good with private information regarding his cost. We show that truthful strategies are not optimal for principals, and that the agent enjoys some rent in equilibrium. It is not always that all principals make contributions: the...

This paper examines the equilibrium provision of a public good if the private monetary contributions of identical agents are (im)pure complements. To reconcile complementarity in contributions with the apparent substitutability of monetary payments, we assume a setup with multiple inputs into a...

A warm-glow motivation for charitable giving has recently been explored as a possible solution to the problem of inefficient private provision of public goods. However, the introduction of warm-glow affects both the efficient level of public good provision as well as the equilibrium level. Hence...

This paper addresses the now famous question of “Does Money Matter?†in public education. While the general consensus is that additional expenditures may improve educational outcomes, this is by no means a guarantee. Indeed, some studies indicate that a school's resources are not an...