Dan, Anderberg; Carlo, Perroni - In: The B.E. Journal of Economic Analysis & Policy 3 (2003) 1, pp. 1-19
We consider the implications of a lack of policy commitment when policies are chosen through a political process and individuals are ex-ante identical. We show that politics, by allowing ex-post distributional tensions to shape policy, can make it possible to sustain non-trivial equilibria in...