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...

We consider an economy where decision maker(s) do not know the true production function for a public good. By using Bayes rule they can learn from experience. We show that the economy may learn the truth, but that it may also converge to an inefficient policy where no further inference is...

We give conditions under which the smoothness properties of the value and policy functions of a dynamic program at discount factor zero extend to small positive discount factors. We apply this to a model of Bayesian learning by a decision maker who does not know which of several parameters is...