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Whereas completely benevolent leaders may initiate welfare improving small avoidable wars in first terms even when their reelection would be assured in the absence of war,
We are thus left with two kinds of pure strategy equilibria under the complex rule: a separating equilibrium in which the good type of government chooses the inefficient action in
A long stream of laboratory experiments has studied voluntary contributions in public goods environments and established one basic fact: subjects contribute to the provision of
The formal analysis has specified conditions under which the introduction of the trust fund will increase welfare for all generations relative to the level achieved under the
As Robinson (1997) suggests, a population will be most willing to accept political pay-offs when everyone gains in the process, i.e. when inequality remains relatively low. If rents
In an empirical application of the model developed in Section 2, we first estimate the impact of foreign assistance given to India on its central government’s development
Silva, Pure public goods and income redistribution in a federation with decentralized leadership and imperfect labor mobility 265.. Cornes, R.C.,
Apart from the number of employees, the econometric analysis also suggests compliance costs are directly proportional to (i) ‘disturbance variables’ such as labour market flows,
