In this paper the role of information asymmetries between regions and a centralized authority is analyzed. In a model with inter-regional externalities due to capital mobility and a source-based tax instrument, we first derive conditions for which the optimum can be implemented by an adequately...

We analyze the interplay of group identity and inter-group conflict in a contest where each of two conflicting groups can develop either a group or an individualistic identity. Contest structures impact on the adoption of identities which themselves influence behavior in the contest. We show the...

In a recent paper, Homburg and Richter have argued that with free mobility of labor within a common labor market there is a need to harmonize and even consolidate pay-as-you-go financed national public pension systems to reach an efficient allocation of labor. We show that with free and...

For pay-as-you-go financed pension systems, claims may be calculated according to individual contributions (income) or the number of children of a family. We analyse the optimal structure of these parameters in a model with endogenous fertility. It is shown that for both structural determinants...

Intergenerational redistribution is one of the major aims of national welfare states that have to prove their reliability in a world of internationally integrated goods and factor markets. In this paper, we analyse the conditions for the existence of steady-state equilibria and the (Pareto-)...

In this paper we analyse the possibility to construct intergenerational criteria of choice within the framework of methodological individualism. The main result of this analysis is, that intergenerational criteria as an aggregation of preferences of current and future individuals do not exist....

Information sharing between governments is examined in an optimal-taxation framework. We introduce a taxonomy of alternative systems of international capital-income taxation and characterize the choice of tax rates and information exchange. The model reproduces the conclusion found in earlier...