In this paper, we characterize a mechanism for reducing pollution emissions in which countries, acting non-cooperatively, commit to match each others' abatement levels and may subsequently engage in emissions quota trading. The analysis shows that the mechanism leads to efficient outcomes. The...

This paper studies multi-stage processes of non-cooperative voluntary provision of public goods. In the first stage, one or more players announce contributions that may be conditional on the subsequent contributions of others. In later stages, players choose their own contributions and fulfill...

This paper examines how sequential decision-making by two levels of government can result in vertical fiscal imbalances (VFI). Federal-regional transfers serve to equalize the marginal cost of public funds between regions hit by different shocks. The optimal vertical fiscal gap minimizes the...

The first note treats the transition from a barter economy to a monetary one from the viewpoint of the theory of clubs. The second note demonstrates the possibility that in general equilibrium the use of a less costly means of exchange man not be beneficial to every agent. The third note shows...