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This paper proposes a simple iterative method - time iteration - to solve linear rational expectation models. I prove that this method converges to the solution with the smallest eigenvalues in absolute value, and provide the conditions under which this solution is unique. In particular, if...
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The paper investigates strategic campaigning in a model of redistributive politics in a society with many groups and two parties. Campaigns are informative, and parties can target campaigns to different groups. Voters are uncertain about whether parties fabor special groups. The parties will...
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The purpose of this paper is twofold. We first develop a contractarian theory of redistribution. The existence of rules … of redistribution is explained without any recourse to the risk-aversion of individuals. Hence, we depart from the … standard legitimization of redistribution as fundamental insurance and interpret it as stemming from a principle of reciprocity …
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