An optimizing model with overlapping generations and finance constraints is used to develop microfoundations for the monetary adjustment process under fixed exchange rates. The results are broadly consistent with those of the monetary approach to the balance of payments. However, it is shown...

Conventional macroeconomic models disregard both the distinction between liquid and investment assets and the unique f eature of money as that liquid asset that serves as the means of paym ent. This paper incorporates both features into a four-asset dynamic IS-LM model. After imposing the...

Standard spatial models of political competition give rise to equilibria in which the competing political parties or candidates converge to a common position. In this paper I show how political polarization can be generated in models that focus on the nexus between pre-election interest group...

There is a long-standing difference amongst public economists between those who think that collective choice must be formally acknowledged, and those who derive their policy recommendations from a social planning framework in which politics plays no role. The purpose of this book is to...