Showing 1 - 10 of 604
This paper examines how preference heterogeneity affects the ability of the poor to extract resources from the rich. We study the equilibrium of a game in which coalitions of individuals form parties, parties propose platforms, and all individuals vote, with the winning policy chosen by...
Persistent link: https://www.econbiz.de/10012467108
political power decides the allocation of resources. We show that Pareto efficient allocations take a quasi-Markovian structure … high discount factors, the economy converges to a first-best allocation in which labor supply decisions are not distorted …
Persistent link: https://www.econbiz.de/10012463249
In models with recursive preferences, endogenous variation in Pareto weights would be interpreted as wedges from the perspective of a frictionless model with additive preferences. We describe the behavior of the (relative) Pareto weight in a two-country world and explore its interaction with...
Persistent link: https://www.econbiz.de/10012456898
agent owning his own production, results in a Pareto efficient allocation …
Persistent link: https://www.econbiz.de/10012457783
We analyze the democratic politics of a rule that separates capital and ordinary account budgets and allows the government to issue debt to finance capital items only. Many national governments followed this rule in the 18th and 19th centuries and most U.S. states do today. This simple 1800s...
Persistent link: https://www.econbiz.de/10012467657
Recent policy proposals have suggested taxing top incomes at very high rates on the grounds that some or all of the highest wage earners are engaged in socially unproductive or counterproductive activities, such as externality imposing speculation in the financial sector. To address this, we...
Persistent link: https://www.econbiz.de/10012461624
Blomquist and Christensen (2005) argue that welfare is initially decreasing in the price of an excludable public good and that the case for a positive price for an excludable public good price is weak. We argue that this result follows from their particular characterization of the public good...
Persistent link: https://www.econbiz.de/10012466132
similarly but differ in their preference intensities. We characterize optimal allocation rules when individual preferences are …
Persistent link: https://www.econbiz.de/10012629428
This paper focuses on the relationship between public action and access to public goods. It begins by developing a simple model of collective action which is intended to capture the various mechanisms that are discussed in the theoretical literature on collective action. We argue that several of...
Persistent link: https://www.econbiz.de/10012465745
We develop a model of the private provision of public goods in a world where agents face convex costs of provision. Consonant with prior empirical evidence, we introduce preference heterogeneity by allowing a subset of agents to exhibit pro-social behavior that reflects "green" preferences. We...
Persistent link: https://www.econbiz.de/10012458400