In this paper, using the logics of economic theory, I will try to identify and explain the sources of such an institutional crisis that, on long term, jeopardize Europeans’ prosperity. The answer is given by the conception, still dominant, of European politics elite, according to which...

We analyse the question of optimal taxation in a dual economy, when the policy-maker is concerned about the distribution of labour income. Income inequality is caused by the presence of sunk capital investments, which creates a ‘good jobs’ sector due to the capture of quasi-rents by trade...

The paper studies the optimal education policy of a budget-constrained utilitarian government. Households differ in their income and in the intellectual ability of their children; income is observed by the government, but ability is private information. Households can choose to use private...