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We develop a model in which it is uncertainty about the future domestic policy environment that both makes international cooperation attractive and induces the possibility of a nation reneging on such an international agreement. We show, in a fairly general setting in which the likelihood of...
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redistribution mechanism of incomes. Sinn (1995) has developed a normative theory of the welfare state in this view. On a …-time incomes. Our paper extends this theory of the welfare state by allowing for incomes which may fall below a subsistence level …
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