A multi-jurisdictional system is thought to improve, through yardstick competition, accountability. At the same time equalization programs, a common feature of multijurisdictional systems, are thought to be a prerequisite for both efficiency of the internal market and the equity objective of the...

This paper examines the system of fiscal equalisation among local jurisdictionsin the state of Lower Saxony. The incentives emanating from this system for the choices of the local business tax rates are quantified. For this purpose, we compute for all municipalities the rate by which grants are...

A model where a portion of the population participates in illegal activities is developed. The propensity to participate in crimes depends on the probability and the opportunity cost of beingarrested. The government can influence these variables by law enforcement expenditures and by social...

Es wird ein Modell präsentiert, in dem ein Teil der Bevölkerung straffällig wird.Die Neigung zur Kriminalität hängt von der Wahrscheinlichkeit ab, entdeckt zuwerden, sowie von den Opportunitätskosten, falls man entdeckt wird. Der Staatkann diese Variablen durch Strafverfolgungsmaßnahmen...

We use a stylized model to show that, if transfers to the poor arefounded on a security argument, there is a negative trade-off betweenlaw enforcement expenditures and criminality. In contrast, if transfersare based on altruism, the correlation between the same variables mayappear positive. We...

In a model where consumers have quasi-hyperbolic preferences, we compare immediate subsidies paid for health-conscious consumption and future subsidies rewarding good health outcome. We characterize the subsidy rates which implement the unbiased choice. These rates differ because of two...

The recent literature has emphasized that government intervention when consumers have quasi-hyperbolic preferences ('bias for the present') over consumption is not welfare-enhancing. This paper introduces a market imperfection (which takes the form of a negative externality) and shows that...

Economic models on voting usually assume that voters maximize their own material interests. Yet there is convincing evidence that people also tend to care about fairness and the common good. Furthermore, some voters may derive utility from the act of voting in a certain way, independent of...