Berentsen, Aleksander; Bruegger, Esther; Loertscher, Simon - Department Volkswirtschaftlehre, Universität Bern - 2005
We consider a median voter model with uncertainty about how the economy functions. The distribution of income is exogenously given and the provision of a public good is financed through a proportional tax. Voters and politicians do not know the true production function for the public good, but...