In a recent article Davidson, Lawrence and Wilson propose a model showing that, in the presence of distortionary taxations and goods of different quality, tax evasion can be an optimal device. Here, we show that this result, although quite interesting, cannot be generalised to a framework where...

In some countries reforms of public service provision have been accompanied by a parallel process of devolution. However, the application of fiscal federalism has not always produced the desired effects. We argue that this result may depend on two factors: a) a lack of coordination causing a...

In a recent article Davidson, Lawrence and Wilson propose a model showing that, in the presence of distortionary taxation and goods of different quality, tax evasion can be an optimal device. Here, we show that this result, although quite interesting, cannot be generalised to a framework where...

In this article we show that when the provision of paternalistic goods is entwined with income distribution, the political decision process may prevent welfare maximisation. We model the decision process from a political economy perspective by assuming that the quantity of a paternalistic good...

In a recent article Davidson, Lawrence and Wilson propose a model showing that, in the presence of distortionary taxation and goods of different quality, tax evasion can be an optimal device. Here, we show that this result, although quite interesting, cannot be generalised to a framework where...

The reforms that have reshaped most public health care system have often been accompained by a process of devolution. However, this process has not always produced the desired effects and the existence of widespread soft budget constraint policies at local level is well documented. In this paper...

In this article we show that when the provision of paternalistic goods is entwined with income distribution, the political decision process may prevent welfare maximization. We model the decision process from a political economy perspective by assuming that the quantity of a paternalistic good...

We model tax evasion in the context of an endogenous growth model with two actors: a private agent and the government. The private agent invests his/her endowment of physical capital in the production of a private good. The income derived is used for consumption activities and to finance a...

In this article we propose a model that explains why devolution in the real world may be implemented even when efficiency would call for a centralised solution. In a context where Central Government delegates to lower tiers the provision of merit and impure public goods, fiscal federalism has...