This paper examines a situation in which a decision-maker determines the appropriate compensation that should be awarded for a given amount of ecological damage. The compensation can take the form of either or both monetary and environmental units to meet three goals: i) minimisation of the cost...

This paper investigates the sustainability of fiscal co-ordination between two regions according to three criteria of co-ordination: tax harmonization, fiscal cooperation and bargaining. We show that in a two-region model in which regions differ in size, bargaining is the only sustainable...

We introduce political economics into the soft budget constraint problem by asking if the timing of elections has the potential to harden budget constraints. Specifically, we ask under which circumstances the soft budget constraint problem is worse—with synchronized elections, i.e....

[eng] The Economic Justification of European Monetary Integration : ex ante, ex post or not at all ? . Did economic analysis justify ex ante the decision to create an European monetary union (EMU) and the way to create it ? By looking at the main theoretical contributions and at official...

This paper analyses strategic fiscal policy-making within the context of the standard two-country-two-good real trade model developped by Turnovsky (1988). Introducing asymmetry between the two countries and assuming that one country acts as a Stackelberg leader relative to the other one, we...

This paper explores the interactions between countries implementing a fiscal policy in a monopolistic competition framework. The study of the fiscal multipliers shows that a fiscal expansion in the home country increases domestic output and diminishes foreign output in the short run. Profit...