The paper uses the 1992 household survey for Bulgaria to show poor revenue performance of the income tax structure prevailing in 1992, which did not take into account the underlying distribution of income. The paper shows that Bulgaria can benefit from a much lower and simpler income tax rate...

We model the agenda formation process as a network. In an agenda network, nodes represent agendas while arcs represent coalition preferences over agendas and coalitional moves from one agenda to another. We show that all agenda networks have agenda nodes which are farsightedly consistent. These...

Consider a government that adopts a program, sees a noisy signal about its success, and decides whether to continue the program. Suppose further that the success of a program is greater if people think it will be continued. This paper considers the optimal decision rule for continuing the...

The self-interested ruler will not name a successor. Instead, he will prefer to rely on a tacit rule of succession, in which longevity confers legitimacy. [JEL D72, D81]

This paper analyses the determinants of happiness in seven Eastern European transition countries during the early phase of economic transition. The analysis of representative survey data in an ordered logit model shows that those core socio-demographic and economic variables known to be relevant...

This paper investigates the relationship between a bureaucracy and mass media industry, and its implications to corruption. We develop a bureaucratic model of corruption with mass media. A representative profit maximizing media firm seeks for corruption news to be printed and sold. Channels...

This paper is intended as a step toward the development of theoretically founded and operational environmental taxation formula in a second-best world. Recent studies find that environmental taxes typically exacerbate pre-existing tax distortions and, therefore, the optimal pollution tax should...

The objective of this paper is to present Hickssian general equilibrium approaches to productivity measurement in the presence of market failure.

Consider the hypothesis H that a defendant is guilty (a patient has condition C), and the evidence E that a majority of h out of n independent jurors (diagnostic tests) have voted for H and a minority of k:=n-h against H. How likely is the majority verdict to be correct? By a formula of...

The aim of this work is that of exemplifying some applications of the modern theory of the complexity to the economic sector; we will highlight some of the possibilities of control of chaotic systems and some of that possibilities which are opened by the study of such systems. Remembering how a...