This paper argues that corruption patterns are endogenous to political structures. Thus, corruption can be systemic and planned rather than decentralized and coincidental. In an economic system without law or property rights, a kleptocratic state may arise as a predatory hierarchy from a state...

We normally take it for granted: a government or state has its corresponding territory. This paper shows that government need not have a territorial monopoly.

In their book The Power to Tax, Brennan and Buchanan have pointed to a central weakness of the traditional theory of public finance and especially of the theory of optimal taxation: This approach overlooked the problem of governmental power and the tendency of this power to be abused. It was...

Advertisements provide consumers with knowledge about private products, whereas political information is required to provide voters with knowledge of public issues. Modern information technologies and globalization are increasing the exposure of individuals to information. Goods advertising is...

A government agency wants an infrastructure-based public service to be provided. Our experimental study compares two different modes of provision. In a public-private partnership, the two tasks of building the infrastructure and operating it are delegated to one private contractor (a...

The determinants of government responsiveness to its citizens is a key issue in politicaleconomy. Here, we develop a model based on the solution of political agency problems.Having a more informed and politically active electorate strengthens incentives for governmentsto be responsive. This...

Since April 2002 Jobcentre Plus has started to operate nationwide in the UKproviding fully integrated benefit claiming and work placement/job-seekingactivities for people of working age. This new organisation put an explicitwork-focus in the delivery of the benefit system. Along with...

Whether observed differences in redistributive policies across countries are the result ofdifferences in social preferences or efficiency constraints is an important question that pavesthe debate about the optimality of welfare regimes. To shed new light on this question, weestimate labor supply...

By inverting Saez (2002)’s model of optimal income taxation, we characterize theredistributive preferences of the Irish government between 1987 and 2005. The (marginal)social welfare function revealed by this approach is consistently comparable over time andshow great stability despite...

Rules of employment protection installed by legislation or wage agreements should enhancethe failures of the labour market mechanism, for instance to stabilize the demand for labourforce over several time periods. Fluctuation of human capital is mostly connected with costsfor both parties of the...