This paper studies fiscal federalism when regions differ in voters’ ability to monitor public officials. We develop a model of political agency in which rent-seeking politicians provide public goods to win support from heterogeneously informed voters. In equilibrium, voter information...

There is evidence that music piracy has differential effects on artists depending on their popularity. We present a model of music piracy with endogenous copying costs: consumers’ costs of illegal downloads increase with the scarcity of a recording and are therefore negatively related to the...

A widely accepted result in the literature is that the majority of voters are against the introduction of universal vouchers. Chen and West (2000) predict that voters' attitudes towards selective vouchers (SV) may be different. They claim that voters are indifferent between the no-voucher and SV...

This study compares the representativeness of voters in the proportional electoral system with the situation under plurality rule. Representativeness is commonly measured by comparing parties' received votes with their shares of seats in the Parliament, this implies that proportional rule should...

The standard expected utility model of tax evasion predicts that evasion is decreasing in the marginal tax rate (the Yitzhaki Puzzle). The existing literature disagrees on whether prospect theory overturns the puzzle. We disentangle four distinct elements of prospect theory and find loss...