This paper studies Pareto efficient income taxation in an economy with finitely-lived individuals whose income generating abilities evolve according to a two-state Markov process. The study yields three main results. First, when individuals are risk neutral, in any period the only individuals...

This paper explores the ability of pivotal-voter models to explain voter behavior in small-scale elections using data from Texas liquor referenda. The findings provide little support for the view that pivotal-voter models are a reasonable theory for understanding small-scale elections....

This paper explores the provision of a durable public good in Romer and Rosenthal's agenda setter model. It identifies a type of equilibrium, called a Romer–Rosenthal equilibrium, in which in every period the bureaucrat proposes the maximum level of public investment the voter will support....