This paper addresses an optimal tariff design to protect an infant-industry in the presence of learning effects. Firms decide how much to produce, taking into account learning effects induced by their current production, while the government decides on the level of tariff protection. In order to...

When a principal and an agent operate with simple contracts, at equilibrium, renegotiation will occur after the action is taken. Also, since renegotiation makes incentive contracts non-credible, the principal may prefer non-renegotiable monitoring options. Current literature does not fully...

This paper develops an economic perspective on political theory, as a guide to some problems and directions of current research. The electoral system and the allocation of powers to elected offices together define the game that politicians play. So democratic structures should be compared and...