Aging changes the political power in a democracy in favor of the older generations. With free labor mobility like that of the EU, the success of the gerontocracy is, nevertheless, limited by migration of the young generations. This connection between political voting and voting with the feet is...

In this paper, we explore the relationship between an equitable distribution of the cost shares in cooperative public good provision and the core property of Pareto-optimal allocations. Core allocations do not only fulfil an important stability condition but are also the only promising...

In this paper, we analyse how the prospect of international negotiations over transboundary pollution shapes intra-country transfer schemes when the governments of the countries' polluting regions are in charge of environmental policy and negotiations. Federal governments can implement...

In a recent paper, Scholten and Thum (1996) analyze the impact of a pay-as-you-go (PAYG) pension system with a fixed replacement ratio on the immigration policy in a democracy. The authors extend the analysis of median voter's choice in two respects. First, in contrast to Scholten and Thum...

This paper explores the outcome of an international environmental agreement when the governments are elected by their citizens. It also considers a voter's incentives for supporting candidates who are less green than she is. In the extreme case of "global" pollution, the elected politicians pay...

Aging changes the political power in a democracy in favor of the elder generations. Consequently, the retirees can extend the pay-as-you-go financed pensions. Under free labor mobility like within the EU, the success of gerontocracy, nevertheless, is restricted by migration of the young...

In this paper, we analyse the role of mobility in tax and subsidy competition. Our primary result is that increasing ‘relocation’ mobility of firms leads to increasing ‘net’ tax revenues under fairly weak conditions. While enhanced relocation mobility intensifies tax competition, it...

This paper analyses political forces that cause an initial expansion of public spending on higher education and an ensuing decline in subsidies. Growing public expenditures increase the future size of the higher income class and thus boost future demand for education. This demand shift implies...