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regulate the economy and to withstand the political and social challenges from non-state actors. I construct a model in which … the state apparatus is controlled by a self-interested ruler, who tries to divert resources for his own consumption, but … who can also invest in socially productive public goods. Both weak and strong states create distortions. When the state is …
Persistent link: https://www.econbiz.de/10012467409
In this essay I review the new book by Torsten Persson and Guido Tabellini, The Economic Effects of Constitutions, which investigates the policy and economic consequences of different forms of government and electoral rules. I also take advantage of this opportunity to discuss the advantages and...
Persistent link: https://www.econbiz.de/10012467450
Politicians may use disguised' redistributive policies in order to circumvent opposition to explicit tax-transfer schemes. First, we present a theoretical model that formalizes this hypothesis; then we provide evidence that in US cities, politicians use public employment as such a redistributive...
Persistent link: https://www.econbiz.de/10012472067
consequences. Five main issues are addressed. First, I identify the key factors that make both European-style "welfare state" and … institutions that can be durably sustained, showing in particular how skill-biased technical change may cause the welfare state to …
Persistent link: https://www.econbiz.de/10012468322
This paper aims to explain the significant variations in the social contract observed across nations. It shows how countries with similar technologies and preferences, as well as equally democratic political systems, can sustain very different average and marginal tax rates. Similarly, it...
Persistent link: https://www.econbiz.de/10012473265
We develop a dynamic political-economic theory of welfare state and immigration policies, featuring three distinct … characterizes the evolution of the political coalitions that implement welfare state and migration policies …
Persistent link: https://www.econbiz.de/10012457860
. In addition, grants-in-aid from state governments to local school districts form an important component of the district … revenues. This paper has two main features. One is the characterization of local spending when the state aid structure is of … the closed-end matching grant type. Under this structure, local tax price is endogenous, since the amount of state subsidy …
Persistent link: https://www.econbiz.de/10012476662
state-level panel data over the period 1977-1994. The results suggest that important cross-policy strategic interactions …
Persistent link: https://www.econbiz.de/10012468897
The most recent addition to the economics of gloom concerns the interplay between income and environmental degradation. The main question raised is whether or not continued environmental degradation is a necessary part of the process of industrialization. Will pollution continue to increase...
Persistent link: https://www.econbiz.de/10012473672
Long before economics turned to psychology, environmentalists were nudging and framing and pushing their cause like highly gifted amateur psychologists. Their interventions seem to have changed behavior by altering beliefs, norms and preferences, but because psychological interventions are often...
Persistent link: https://www.econbiz.de/10012459303