In fiscal interaction, a policy is evolutionarily stable if, once adopted by all governments, jurisdictions that deviate from it fare worse than those that stick to it. Evolutionary stability is the appropriate solution concept for models of imitative learning (policy mimicking). We show that...

In this chapter, we assess recent contributions of computational models to the study of politics. We focus primarily on agent-based models developed by economists and political scientists. These models address collective action problems, questions related to institutional design and performance,...

Cooperative budgeting arrangements between state and local governments jointly fund local programs. The mix of state and local revenues contributed to these arrangements can change as budget priorities shift over time. This study examines the strategic choices public officials make as they...

This study argues that the key issue for defining and solving the Eurozone’s (EZ) difficulties lies in readjusting the relationship between the centre and the periphery of the EZ. Our argument proceeds in two steps. Firstly, the basic finance problem of a centre-periphery system is captured by...

How many international agreements should there be, and who should sign them? When policy issues are separable, linking them in a "grand international agreement" facilitates policy cooperation by reallocating slack enforcement power. When policy issues are substitutes, issue linkage facilitates...

This paper examines stability of international climate agreements for carbon abatement under an optimal transfer rule and renegotiations. The optimal transfer rule suggested to stabilise international environmental agreements (Weikard 2005, Carraro, Eyckmans and Finus 2006) is no longer optimal...

When forming policy under conditions of extreme uncertainty, the optimal approach seems to be a process by which the policy decision is divided into multiple stages, or in other words, an experimental approach. The optimal legal vehicle for such policy experimentation is what I call...

We examine whether the strategic delegation problem in interregional negotiations can be solved by a governmental policy. It is well known that when an interregional negotiation is delegated to representatives, each region elects its representative strategically, resulting in inefficient...

Consolidation or fragmentation for financial regulators? This debate has gained importance since the 2007-2009 financial crisis. The financial services sector has changed considerably over the last 25 years. Financial institutions have evolved from domestic firms engaged in distinct insurance,...

When directives rather than contracts determine rights to water flows, agents will substitute away from securing water rights by contract toward securing them through political directives. When those directives are legitimated by court rulings, they alter the rules that govern social...