Although most people agree with the importance of fiscal reconstruction, it is really difficult to agree with the concrete process of how to reconstruct the fiscal system. The present paper intends to investigate theoretically the negotiation process between interest groups and the fiscal...

We provide an analysis of odds-improving self-protection for when it yields collective benefits to groups, such as alliances of nations, for whom risks of loss are public bads and prevention of loss is a public good. Our analysis of common risk reduction shows how diminishing returns in risk...

　　 This study analyzes how commitment to a deficit ceiling can affect private agents' political efforts, as well as overall welfare, in a hard and a soft budget regime, using a two-period model simulating a present and a future generation and a government. In the hard budget...

We investigate the structure of interactions among countries exercising voluntary uncoordinated choice but sharing a common "risk profile" --- a vector comprised of chance of adversity/emergency and magnitude of loss under adversity/emergency. We use the term "emergency costs" to refer to the...

This paper investigates how the soft budget constraint with grants from the central government to local governments tends to exaggerate inefficient local expenditures. We first develop a theoretical model, which explains soft budget problem in a multi-government setting. We then show that in...

This paper investigates how the soft-budget constraint with grants from the central government to local governments tends to internalize the vertical externality of local public investment by stimulating local expenditure when both the central and local governments impose taxes on the same...

The purpose of this paper is to analyze sustainability issues of Japan's fiscal policy and then to discuss the debt management policy using theoretical models and numerical studies. We also investigate the desirable coordination of fiscal and monetary authorities toward fiscal reconstruction. We...

This paper develops simple models of public transfers. The sources of income inequality are differences in ability and in luck. The government employs a redistribution policy due to altruistic motives in the case of ability differences. We consider the case there the government reoptimizes...

This paper explores how the disexternality effects of polluting consumption will affect economic welfare in the long run. It is assumed that polluting consumption and environmental quality may be technically convertible at a given rate. We first consider the case where abatement behavior is...

This paper explores the implications of the interaction between interregional tax competition and intraregional political competition for the optimal provision of public goods. In contrast to Hoyt's (1991) finding that the extent to which public goods are undersupplied is monotonically...