We show that the joint presence of moral hazard and repudiation risk generates an importnat interaction effect. In order to provide the proper incentives to borrowers, the optimal financial contract under moral hazard calls for all available resources to be paid to the lender in the event of a...

In a recent issue of Economics and Politics Crain and Leonard (1993) described the effects of compulsory voting on government spending. The purpose of this paper is twofold. First, problems in Crain and Leonard's approach are identified. Their use of the median-voter model appears inconsistent...

This paper explores the impact of home-biased public procurement on the location of industries. It is shown theoretically and empirically that discriminatory procurement can offset other locational determinants. In the theoretical part, we demonstrate that a bias in public procurement towards...

This paper formalises the choice a firm has to face when entering a foreign market via FDI as between setting up an entirely new plant (greenfield investment) or acquiring an existing indigenous firm. Our results show that in an asymmetric duopoly situation a new entrant will normally be best...

This paper focuses on replication in the sense of Herrnson (1995). It re- examines the only study of an Irish popularity function (Borooah and Borooah, 1990) in the light of recent developments in econometric methodology and in Irish politics. Using error correction models the analysis provides...

The preliminary step in assessing the extent of inequality is to decide how to measure it. Different indices exist, each responding to a built-in "aversion to inequality", and the choice of the index to be used affects conclusions. Whilst there is not a "preferable" index, the family of General...

This paper quantifies the effects of the differential tax treatment of various savings media in Ireland during the period 1980 - 1995. It is shown that there is substantial variation in effective tax rates (ETRs) across a variety of assets and that these variations impact upon vertical equity....

We analyze the production factor which is behind the phenomenon of the de-materialization of advanced economies: synergic combinations of electronic hardware and software, which are capable of manipulating symbols autonomously and modifying themselves - forms of 'intelligent' capital because...

The initial years of transition in the Russian federation have been characterised by relatively smaller falls in employment than observed in other reform- orientated countries of Eastern Europe. We show that for many Russian workers, the dominant form of labour market adjustment is instead the...

We present a model of growth à la Lucas with two 'competing' factors. The first needs to allocate its time between production, accumulation and a non productive activity (rest or leisure). The second can devote its time simply to production and accumulation. The two factors can generate harmful...