Much of the literature on the economics of mortgage markets has studied the FRM-ARM choice made by individual borrowers. However, to decide if the outcome of such a choice is efficient or approximately so, it is necessary to explore the question of optimal risk-sharing in mortgage contracts. But...

This article addresses the potential optimality of joint provision of multiple public goods when the joint cost function of such goods exhibits economies of scope. On one hand, the joint provision of public goods in multiproduct clubs leads to cost savings under economies of scope. However,...

This paper extends the small existing theoretical literature on negative campaigning, building on work by Harrington and Hess (1996). While their analysis explores the determinants of negative campaign spending using a classic spatial voting model, this paper relies instead on a probabilistic...

This paper examines the effect of an increase in the tax rate on tax evasion in a model where taxpayers report their incomes and pay the taxes first, and the penalties are imposed later if evasion is caught. When the penalty is imposed on the undeclared income, an increase in the tax rate leads...

This paper considers a positive model of income redistribution with mobile individuals in a federal system. The politician of a jurisdiction makes redistributive policy to maximize political support from poor welfare recipients and rich taxpayers. If only the poor move, a politician...