Public investment can cause the preferences of the decisive voter in one period to differ from preferences of the decisive voter in an earlier period. Forward-looking voters may therefore vote against a policy that would increase the incomes of all persons. The effect may arise when increased...

The authors explore the properties of various types of public and private pricing on a congested road network with heterogenous users allowing for elastic demand. Heterogeneity is reprensented by a continuum of values of time. The network consists of both serial and parallel links, which allows...

This paper analyzes processes of deflation and reflation in a debt-constrained economy. Nominally rigid debt obligations could limit firms' ability to reduce the output prices in response to a negative aggregate demand shock, giving ride to an under-employment equilibrium. The standard policy...