In this article we show that when the provision of paternalistic goods is entwined with income distribution, the political decision process may prevent welfare maximization. We model the decision process from a political economy perspective by assuming that the quantity of a paternalistic good...

We model tax evasion in the context of an endogenous growth model with two actors: a private agent and the government. The private agent invests his/her endowment of physical capital in the production of a private good. The income derived is used for consumption activities and to finance a...

In this article we propose a model that explains why devolution in the real world may be implemented even when efficiency would call for a centralised solution. In a context where Central Government delegates to lower tiers the provision of merit and impure public goods, fiscal federalism has...

In some countries the reform of public health care provision has been accompanied by a parallel process of devolution that has also entailed the organisation of health care becoming a regional competence. However, the application of fiscal federalism in the context of the provision of health...