European Journal of Political Economy

Items from 1 to 20 out of 51 results

article

On the incompatibility between revenue maximisation and tax progressivity

European Journal of Political Economy > 1999 > 15 > 1 > 123-140

In a groundbreaking paper, Chander and Wilde (1992) demonstrate that revenue maximisation and tax progressivity are incompatible in tax enforcement games. In this paper, we argue that this incompatibly disappears either if the taxpayer displays increasing relative risk aversion, or if large underreportings are easier to detect. For each of these cases, we construct an example in which the revenue...

article

Social instability and redistribution of income

European Journal of Political Economy > 1999 > 15 > 1 > 35-51

Rational agents can express discontent with a given distribution of income by threatening to disrupt an economy, if such a threat is profitable. This paper describes such circumstances in a two-class model. Social stability constraints define the acceptable set of income distributions, the range of which is determined by the extent to which income-generating abilities are vulnerable to disruption...

article

Can we improve upon approval voting?

European Journal of Political Economy > 1999 > 15 > 1 > 89-100

Voting is an important means of reaching societal or organizational decisions. Yet, all voting procedures have drawbacks on normative or ethical grounds. Approval voting ameliorates many of the drawbacks if voter preferences are dichotomous. Important problems remain, however, if voters do not have dichotomous preferences. These problems include the possible violation of Condorcet criteria and the...

article

Competition for stars and audiences: an analysis of alternative institutional settings

European Journal of Political Economy > 1999 > 15 > 1 > 101-121

Providing and marketing professional artistic services is a profitable business. But the competition for stars and audiences is subject to market failure. There are two potential sources of market failure that are highlighted in the present paper. The consumption of artistic services creates a positive externality for the star: popularity. In addition, the organization of artistic performances has...

article

Erratum

European Journal of Political Economy > 1999 > 15 > 1 > 141

article

Environmental quality with endogenous domestic and trade policies

European Journal of Political Economy > 1999 > 15 > 1 > 53-71

This paper analyzes environmental quality under different policy regimes in a small open political economy model with production or consumption externalities. In contrast to standard theory, it is shown that inefficient trade policies can lead to higher environmental quality than efficient domestic policies. For a production externality, lobbying by a polluting industry results in environmental quality...

article

The impact of legislative institutions on public policy: a survey

European Journal of Political Economy > 1999 > 15 > 1 > 1-33

This paper surveys the application of spatial models for the analysis of economic policy decisions. Three topics are reviewed: the first is how the structure of the decision-making process contributes to stable and consistent policy choices. Both aspects are decisive prerequisites for the functioning of a market economy. Second, a review of the literature on US and European Union (EU) policy choices...

article

Product review(s)

European Journal of Political Economy > 1999 > 15 > 1 > 143-148

article

Efficient environmental taxation under moral hazard

European Journal of Political Economy > 1999 > 15 > 1 > 73-88

We study implementation of first-best equilibria in an economy where the government faces no revenue constraint, firms pollute, and there are two types of moral hazard, due to (1) imperfect enforcement of worker effort with respect to both output and environmental care; and (2) limited management liability for accident damage. When aggregate worker effort is given and there is no accident risk, we...

article

Growth and the public sector: a critique of the critics

European Journal of Political Economy > 1999 > 15 > 2 > 337-358

In a recent review article, Agell et al. (ALO) [Agell, J., Lindh, T., Ohlsson, H., 1997. Growth and the public sector: a critical review essay. European Journal of Political Economy 13, 33-52.] claim that theoretical and empirical evidence does not allow any conclusion on whether there is a relationship between the rate of economic growth and the size of the public sector. They illustrate their conclusion...

article

Book review(s)

European Journal of Political Economy > 1999 > 15 > 2 > 381-386

article

Environmental taxes on exhaustible resources

European Journal of Political Economy > 1999 > 15 > 2 > 311-329

Environmental problems are tied to the use of exhaustible resources. A resource tax extracts rents from the resource owning countries, without creating significant incentives for consumers to reduce their resource consumption. The placement of the tax burden on resource owners affects the international distribution of wealth. In this paper we show that it is optimal for small countries who do not...

article

Book review(s)

European Journal of Political Economy > 1999 > 15 > 2 > 371-373

article

Book review(s)

European Journal of Political Economy > 1999 > 15 > 2 > 367-369

article

Book review(s)

European Journal of Political Economy > 1999 > 15 > 2 > 375-378

article

Carrots or sticks? A social custom viewpoint on worker effort

European Journal of Political Economy > 1999 > 15 > 2 > 297-310

This paper develops a social custom model to investigate the validity of two beliefs in the shirking version of efficiency wages as follows: (i) more intensive supervision of the employer will induce the workers to increase their work effort; (ii) the firm faces a trade-off between the wage (carrot) incentive and the supervision (stick) incentive. It is found that two conflicting effects, namely the...

article

The generalized Coase Theorem and separable individual preferences: an extension

European Journal of Political Economy > 1999 > 15 > 2 > 331-335

In a recent article [Bernholz, P., 1997. Property rights, contracts, cyclical social preferences, and the Coase Theorem: A synthesis. European Journal of Political Economy, 13, 419-442] it was shown that the Coase Theorem can be generalized to all cases of assignments of rights, including political and bureaucratic rights. At the same time, however, additional assumptions besides the absence of transaction...

article

Central bank independence and the sacrifice ratio

European Journal of Political Economy > 1999 > 15 > 2 > 229-255

This paper analyzes the impact of central bank independence on the sacrifice ratio. A monetary game model is constructed where the output depends on past inflation due to some indexation in the economy and where the slope of the short-run Phillips curve depends on the average inflation rate. The model predicts the following main results: A higher degree of central bank independence leads to a higher...

article

Growth and the public sector: A reply

European Journal of Political Economy > 1999 > 15 > 2 > 359-366

Folster and Henrekson [Folster, S., Henrekson, M., 1999. Growth and the public sector: A critique of the critics. European Journal of Political Economy 15, 337-358] claim that, by addressing a number of econometric problems, they can establish that it is likely that economies with a large public sector grow more slowly than economies with a small public sector. But their regressions are fundamentally...

article

Equilibrium outcomes of Lindahl-endowment pretension games

European Journal of Political Economy > 1999 > 15 > 2 > 149-162

This paper considers an economy with a single private and a single public good, where the preferences of the agents are common knowledge but initial endowments of the population are unknown. The public good is produced by the initial endowments of the agents. We ask what happens if a `Lindahl government' (endowment pretension mechanism) is instituted, which directly asks the agents to reveal their...

Volume:
15
Year:
1999

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Keywords

[JEL CLASSIFICATION CODES] D72 (5)
[JEL CLASSIFICATION CODES] E62 (4)
PUBLIC SECTOR (3)
[JEL CLASSIFICATION CODES] D82 (3)
[JEL CLASSIFICATION CODES] E31 (3)
[JEL CLASSIFICATION CODES] H23 (3)
[JEL CLASSIFICATION CODES] H50 (3)
CENTRAL BANK INDEPENDENCE (2)
ECONOMIC GROWTH (2)
ELECTIONS (2)
INCOME DISTRIBUTION (2)
MONETARY POLICY (2)
MONITORING (2)
POLITICAL ECONOMY (2)
[JEL CLASSIFICATION CODES] D7 (2)
[JEL CLASSIFICATION CODES] D70 (2)
[JEL CLASSIFICATION CODES] D73 (2)
[JEL CLASSIFICATION CODES] E52 (2)
[JEL CLASSIFICATION CODES] E58 (2)
[JEL CLASSIFICATION CODES] H20 (2)
[JEL CLASSIFICATION CODES] H21 (2)
[JEL CLASSIFICATION CODES] H30 (2)
[JEL CLASSIFICATION CODES] H41 (2)
[JEL CLASSIFICATION CODES] H62 (2)
[JEL CLASSIFICATION CODES] L22 (2)
[JEL CLASSIFICATION CODES] L33 (2)
[JEL CLASSIFICATION CODES] O40 (2)
ACCIDENT RISK (1)
ADVERSE SELECTION (1)
AGENCY THEORY (1)
APPROVAL VOTING (AV) (1)
AUDITING (1)
BLACK MARKET (1)
BOUNDED RATIONALITY (1)
CENSORED MODELS (1)
CHAIN OF TRANSACTIONS (1)
COALITION (1)
COASE THEOREM (1)
COLLECTIVIZATION (1)
COLLUSION (1)
COLLUSION AND HIERARCHIES (1)
COMMITMENT (1)
CONSUMPTION EXTERNALITY (1)
CORRUPTION (1)
CROSS-COUNTRY REGRESSION (1)
CROSS-COUNTRY REGRESSIONS (1)
CROSS-OWNERSHIP (1)
DEFICITS (1)
DEMAND FOR HEALTH (1)
DEVELOPING COUNTRIES (1)
DICHOTOMOUS PREFERENCES (1)
DISCRETE MODELS (1)
DISCRIMINATION (1)
DUOPOLY MARKET (1)
EFFICIENCY WAGE (1)
ENVIRONMENTAL POLICY (1)
ENVIRONMENTAL TAX (1)
ENVIRONMENTAL TAXES (1)
ENVIRONMENTALISM (1)
EQUITY AND EFFICIENCY (1)
FIRST-BEST ALLOCATION (1)
FISCAL ILLUSION (1)
FISCAL POLICIES (1)
FISCAL POLICY (1)
GAME-THEORY (1)
GAMES OF PRETENSION (1)
GOVERNMENT DEFICITS (1)
GOVERNMENT EXPENDITURE (1)
GOVERNMENT GROWTH (1)
GROWTH (1)
HEALTH PRODUCTION (1)
HEALTH STATUS (1)
ILLEGAL IMMIGRATION (1)
IMPRISONMENT (1)
INCOME TAXATION (1)
INDIRECT EVOLUTION (1)
INDIVIDUAL PREFERENCE ORDERING (1)
INFLATION (1)
INFLATION BIAS (1)
INSURANCE (1)
INTERNATIONAL PUBLIC GOODS (1)
INTERNATIONAL REDISTRIBUTION (1)
INVESTMENT (1)
LINDAHL SOLUTION (1)
LOBBYING (1)
MAJORITARIAN INSTABILITY (1)
MAJORITY VOTING (1)
MANIPULATION VIA HIDING OF ENDOWMENTS (1)
MASS MEDIA (1)
MAXIMUM PUNISHMENT (1)
MORAL HAZARD (1)
MULTINOMIAL LOGIT (1)
MULTIPLE POLICIES (1)
NAFTA (1)
NASH BARGAINING (1)
NATURAL MONOPOLY (1)
NILPOTENT MATRIX (1)
NORMATIVE CRITERIA (1)
OCCUPATIONAL STATUS (1)
OUTPUT-INFLATION PREFERENCES (1)
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INFONA - science communication portal

European Journal of Political Economy

On the incompatibility between revenue maximisation and tax progressivity

Social instability and redistribution of income

Can we improve upon approval voting?

Competition for stars and audiences: an analysis of alternative institutional settings

Erratum

Environmental quality with endogenous domestic and trade policies

The impact of legislative institutions on public policy: a survey

Product review(s)

Efficient environmental taxation under moral hazard

Growth and the public sector: a critique of the critics

Book review(s)

Environmental taxes on exhaustible resources

Book review(s)

Book review(s)

Book review(s)

Carrots or sticks? A social custom viewpoint on worker effort

The generalized Coase Theorem and separable individual preferences: an extension

Central bank independence and the sacrifice ratio

Growth and the public sector: A reply

Equilibrium outcomes of Lindahl-endowment pretension games

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