hampered by the lack of a definition for good government. To provide a quantifiable measure of good government, Huther and Shah … government?s ability to:- Ensure political transparency and a voice for all citizens (the citizen participation index measures … political freedom and political stability).- Provide effective public services efficiently (the government orientation index …

-regional groups. A contract-theoretic model is presented for shedding some light on this phenomenon. The government promises a … credibility of the government's commitment. This increases the cost of the required transfer of wealth, and may make it unfeasible …

The theory of tax smoothing and determination of public debt with uncertain future national income is extended for … prudence. A prudent government deliberately underestimates future national income and the tax base, especially if the variance … government spending or a combination of both. It is easy to allow for government assets as well. Finally, political economy …