We analyze two hitherto little studied but salient questions concerning the trinity of asymmetric information, entrepreneurial activity, and the scope of fiscal policy in an open regional economy. First, we use a two period model to analyze the contractual relationship between entrepreneurs and...

Freedom of movement is one of the great issues of our time. Expanding opportunities for both international and internal migration can greatly expand freedom and opportunity for hundreds of millions of people. The same goes for expanding freedom of choice in the private sector. “Voting with...

We analyze two hitherto little studied but salient questions concerning the trinity of asymmetric information, entrepreneurial activity, and the scope of fiscal policy in an open regional economy. First, we use a two period model to analyze the contractual relationship between entrepreneurs and...

In response to the COVID-19 pandemic, governments around the world adopted a variety of policies expanding the scope of their power. Some of these effects are immediate and observable. Others, however, are not readily observable and only appear over time. We explore these long-run consequences...

In diverse areas – from retirement savings, to fuel economy, to prescription drugs, to consumer credit, to food and beverage consumption – government makes personal decisions for us or helps us make what it sees as better decisions. In other words, government serves as our agent. Understood...

We begin with an economic model of science according to which signals concerning scientific reputation both serve to coordinate the plans of individuals in the scientific domain and ensure that the knowledge that emerges from interactions between scientists and the environment is reliable...

This paper discusses libertarian (or soft) paternalism, as proposed among others by Thaler and Sunstein (2008). It is argued that libertarian paternalism should not be understood as an efficiency-enhancing, but as a redistributive concept. The relationship between libertarian paternalism and...

This chapter summarizes the many aspects of public policy for health care. I first consider government policy affecting individual behaviors. Government intervention to change individual actions such as smoking and drinking is frequently justified on externality grounds. External costs of...

Florian Dorn erstellte diesen Beitrag während seines Promotionsstudiums an der Universität München (LMU). Die Studie wurde im September 2020 abgeschlossen und von der Fakultät für Volkswirtschaftslehre als Dissertation angenommen. Die Dissertation trägt zur Empirie der Ökonomie des...

Performance budgeting schemes in the public sector have to operate with imperfect performance measures. We argue that these imperfections lead to wasteful fund-seeking (window dressing and lobbying) by the administrative units that produce public services. We develop a game-theoretical model to...