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This paper investigates the implications of Baumol's cost disease for a publicly provided good in the presence of distortionary taxation. A model is presented in which the publicly provided good experiences low labor productivity growth relative to the private good. The public sector will grow...
Persistent link: https://www.econbiz.de/10012856026
It is well established that the provision of a pure public good is increasing in group size if the good is normal. What I show is that if the good exhibits even a small degree of rivalry, then the individual level of consumption of the public good falls to 0 in a large group. Thus, a strong...
Persistent link: https://www.econbiz.de/10012729019
With the election of 1994, the Republican party gained control of both houses of the U.S. Congress for the first time since 1954. In this paper, we analyze whether this change in party control had significant effects on the determinants of federal spending at the state level. To perform this...
Persistent link: https://www.econbiz.de/10012729020
We conduct an experimental analysis of signaling games using three models of arbitration. In the signaling model, the informed party in the dispute makes a settlement demand to the uninformed party. In conventional arbitration (CA), the arbitrator is free to impose her preferred settlement. In...
Persistent link: https://www.econbiz.de/10013297505
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We develop a model with asymmetric information, where the uninformed party makes the offer. When parties proceed to trial, their endogenous expenditures partially determine the outcome. The endogenous spending at trial can either strengthen or weaken the bargaining position of the uninformed...
Persistent link: https://www.econbiz.de/10014167140
We examine the behavior of the incarceration rate and the racial disparity in imprisonment for black women and compare this to the results for black men over the period 1978-2016. At the beginning of our sample, the racial disparity is high and of similar magnitude for both groups. Black women...
Persistent link: https://www.econbiz.de/10014097285