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The private provision of public goods suffers from two potential types of efficiency failures: non-optimal output levels of the public good (quantity problem) and an inefficient mix of contributors and non-contributors (sorting problem). Embedding the provision game into a contest that rewards...
Persistent link: https://www.econbiz.de/10014212027
We analyze if and how multi-prize Tullock contests can be used to guarantee efficient contributions to a public good when agents are heterogenous both with respect to the costs of production of the public good and with respect to the utility from its consumption. With two types of individuals,...
Persistent link: https://www.econbiz.de/10014212028
The modern state has monopolized the legitimate use of force. This concept is twofold. First, the state is empowered with enforcement rights; second, the rights of the individuals are restricted. In a simple model of property rights with appropriation and defense activity, we show that a...
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This paper is an analytical attempt to isolate and differentiate the concepts of "redistributive politics" and "corruption". Such analytical distinction helps us in understanding how redistributive politics can adversely affect the quality of public investment in a poor region. We highlight the...
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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...
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