This paper studies competitive equilibria in economics characterized by the presence of asymmetric information (both of the moral hazard and the adverse selection type). We consider economies where non-exclusive contracts (securities) with payoffs dependent on the agents' private information are...

We study, in a model with unemployment, how labour market status affects the preferences for public spending, whether in the form of a public good or subsidies. We then derive the implications for the dynamics of government expenditures, under the hypothesis of majority voting.