We examine a setting in which property rights are initially ambiguously defined. Whether the parties go to court to remove the ambiguity or bargain and settle privately, they incur enforcement costs. When the parties bargain, a version of the Coase theorem holds. Despite the additional costs of...

This paper examines the macroeconomic welfare effects of interest risk premia and controls that limit international capital mobility. Using extended loanable funds analysis, it first demonstrates how perfect capital mobility maximises national income, contrary to a prevalent view that it is...

When there are three parties, instability problems brought about by the emptiness of the core of the corresponding cooperative game may cause the Coase Theorem to fail, even when other more direct impediments to bargaining are low. We show that the standard Coasean bargaining game involving...

Australia's carbon tax has been in place since July 2012. Following the 2013 federal election and change of government, it is likely that the tax will be abolished. This paper evaluates Australia's carbon tax experience and draws lessons for policymakers in other jurisdictions who may be...

When market distortions already exist, producers may attempt to surpress or encourage the establishment of new distortions in hitherto undistorted markets, and may have a strong incentive to appeal to the language of second best to further their private interests. In these situations, the total...

Contests are games in which the players compete for a valuable prize by exerting effort or using resources so as to increase their probability of winning. This paper examines two player multi-item contests, a class of games in which players are faced with a decision about how much of a given...

We examine a setting in which property rights are initially ambiguously defined. Whether the parties go to court to remove the ambiguity or bargain and settle privately, they incur enforcement costs. When the parties bargain, a version of the Coase theorem holds. Despite the additional costs of...

Indices of voting power are intended to measure the a priori degree of in.uence that a voter or party can expect to have in framing legislation or passing motions. Commonly used measures include those proposed by Shapley and Shubik (1954), Banzhaf (1965) and Deegan and Packel (1978). This paper...