Is tax competition good for economic growth? The paper addresses this question by means of a simple model of economic growth in which a wasteful Leviathan state sets taxes and provides productive input. Wasteful behaviour is restricted by the voter, who reduces political support if her income is...

Is tax competition good for economic growth? The paper addresses this question by means of a simple model of economic growth in which a wasteful Leviathan state sets taxes and provides productive input. Wasteful behaviour is restricted by the voter, who reduces political support if her income is...

Is tax competition good for economic growth? The paper addresses this question by means of a simple model of economic growth in which a wasteful Leviathan state sets taxes and provides productive input. Wasteful behaviour is restricted by the voter, who reduces political support if her income is...

Delayed Integration ("DI") is a rule for taxing migrants. It requires that immigrants be taxed in the receiving country only after some period of transition. Conversely, emigrants are released from the obligation to pay home taxes only after a certain period. DI is an alternative ti the...

The massive spending programs and new regulations adopted by many countries around the world in response to the economic crisis of 2008 have drawn renewed attention to the role of government in the economy. Studies of the relationship between government size and economic growth have come up with...

In the last fifty years, many aspects of socialism have been rolled back around the world. Indeed, in the 1990s, following the collapse of communism in Central and Eastern Europe, it seemed as if classical liberal ideas had triumphed. But this did not happen by accident. The role of free-market...

The problem of credible commitment dogs every government, whether democratic or authoritarian. Governments that have sufficient power to begin a project can often change their minds. Paradoxically, such omnipotence can be crippling. If lenders cannot be assured that a current mayor’s...

Recent debates over the relative importance of democracy and state capacity for human development have led to the prevailing view that a strong state must be built before the introduction of democracy. Our research challenges this ``sequencing approach'' in international development. Using a...

You're probably familiar with the earmarking of selective consumption taxes in your state—for example, gas tax revenues may be dedicated to highway funding. However, tax revenues don't always “stick” to the program that they're earmarked to. This chapter shows how earmarked taxes can serve...