This paper examines whether policy commitment mechanisms, when available, will be used by the elected policymaker in a political-economy equilibrium. We describe a two period repeated voting model where second-period outcomes depend on commitment choices made by an elected policymaker in the...

As an attempt at linking together profitability, income distribution and economic crisis the work of Weisskopt (1979) represents a very important seminal contribution to the literature. In a cunningly simple model Weisskopt assesses the importance of three major Marxist explanations of economic...

Within a two-class growing economy with public capital, a comparative dynamic analysis of differential shift from a wage income to a corporation profit tax is carried out to appreciate the distributional effects of tax substitution on capitalists and workers, and to set out the conditions which...

This paper is concerned with the generation and testing of predictions on price adjustment from a model of symmetric oligopoly. Two types of industry demand regimes are considered, linear and iso-elastic. It is shown that these can be distinguished by a simple test, and linear demand is given...

I develop a model of secondary market pricing of sovereign debt when the creditors can reduce the debt. The sovereign obtains a stochastic revenue flow from the external sector and have a constant debt flow obligation. Default is costly for both the sovereign and the creditors and the...

This paper examines the implications of increasing returns-to-scale evasion technologies for the optimal structure of commodity taxes. We find that, in the presence of evasion, tax design should aim at inducing uniform marginal evasion responses across commodities. This objective may dominate...