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Becker, Johannes Gerd; Gersbach, Hans; Grimm, Oliver - C.E.P.R. Discussion Papers - 2010

We examine debt-sensitive majority rules. According to such a rule, the higher a planned public debt, the higher the parliamentary majority required to approve it. In a two-period model we compare debt-sensitive majority rules with the simple majority rule when individuals differ regarding their...

Persistent link: https://www.econbiz.de/10008468567

Rotten Parents and Disciplined Children: A Politico-Economic Theory of Public Expenditure and Debt

Song, Zheng Michael; Storesletten, Kjetil; Zilibotti, … - C.E.P.R. Discussion Papers - 2012

This paper proposes a dynamic politico-economic theory of fiscal policy in a world comprising a set of small open economies, whose driving force is the intergenerational conflict over debt, taxes, and public goods. Subsequent generations of voters choose fiscal policy through repeated elections....

Persistent link: https://www.econbiz.de/10011083405

Structural and Stabilization Aspects of Fiscal and Financial Policy in the Dependent Economy

Buiter, Willem H. - C.E.P.R. Discussion Papers - 1986

exchange rate, the sectoral allocation of production, and the level and composition of private consumption. They also affect …

Persistent link: https://www.econbiz.de/10005498001

The Political Economy of Ethnolinguistic Cleavages

Desmet, Klaus; Ortuño-Ortín, Ignacio; Wacziarg, Romain - C.E.P.R. Discussion Papers - 2009

This paper proposes a new method to measure ethnolinguistic diversity and offers new results linking such diversity with a range of political economy outcomes -- civil conflict, redistribution, economic growth and the provision of public goods. We use linguistic trees, describing the...

Persistent link: https://www.econbiz.de/10008566319

On the Global Supply of Basic Research

Gersbach, Hans; Schneider, Maik - C.E.P.R. Discussion Papers - 2015

In a two-country Schumpeterian growth model, we study the incentives for basic research investments by governments in a globalized world. We find that a country's basic research investments increase with the country's level of human capital and decline with its own market size. This may explain...

Persistent link: https://www.econbiz.de/10011145469

The Case for Restricting Fiscal Policy Discretion

Fatás, Antonio; Mihov, Ilian - C.E.P.R. Discussion Papers - 2002

This Paper studies how discretionary fiscal policy affects output volatility and the rate of economic growth. Using data on fifty-one countries we isolate five empirical regularities: (1) Governments that use often fiscal policy make their economies volatile; (2) The use of fiscal policy is...

Persistent link: https://www.econbiz.de/10005792352

Optimal Capital Allocation Using RAROC And EVA

Stoughton, Neal; Zechner, Josef - C.E.P.R. Discussion Papers - 1999

This paper analyzes financial institutions' capital allocation decisions when their required equity capital depends on … can be delegated through an economic value added (EVA) compensation contract and solve for the optimal capital allocation …

Persistent link: https://www.econbiz.de/10005661956

The Allocation of European Union Allowances. Lessons, Unifying Themes and General Principles

Buchner, Barbara; Carraro, Carlo; Ellerman, A Denny - C.E.P.R. Discussion Papers - 2006

This paper is the concluding chapter of Rights, Rents and Fairness: Allocation in the European Emissions Trading Scheme … lessons and general principles to be learnt from the allocation of allowances in the European Union Emission Trading Scheme … allocation process and on what are the global implications of the EU ETS. As has become obvious during the first allocation phase …

Persistent link: https://www.econbiz.de/10005667060

Are Capital Flows Consistent with the Neoclassical Growth Model? Evidence from a Cross-section of Developing Countries

Manzocchi, Stefano; Martin, Philippe - C.E.P.R. Discussion Papers - 1996

We identify the determinants of capital movements in an ‘augmented-Solow’ model where capital mobility is restricted to a subset of capital assets. We then test the prediction of the neoclassical model and find that it is consistent with the evidence on net capital flows in a cross-section...

Persistent link: https://www.econbiz.de/10005661577

Public goods, participation constraints, and democracy: A possibility theorem

Grüner, Hans Peter - C.E.P.R. Discussion Papers - 2008

It is well known that ex post efficient mechanisms for the provision of indivisible public goods are not interim individually rational. However, the corresponding literature assumes that agents who veto a mechanism can enforce a situation in which the public good is never provided. This paper...

Persistent link: https://www.econbiz.de/10005504573