How many members should groups consist of? This paper addresses this question in view of imperfect information and coordination behavior among the members. I show that the existence of the coordination motive dismisses Condorcet's (1785) suggestion and the nite optimal size of the group is...

Using a tractable dynamic general equilibrium model, this paper analyzes the interaction between the important roles of consumption tax: Redistribution, static and dynamic distortion. In particular, the novel is to provide the sharp implications for resource allocation, aggregate dynamics and...

Through a comparative dynamic analysis, we argue that the reality of public debt issuance, which responds flexibly to business cycles in contrast to the EU’s institutionally prescribed fiscal discipline, may contribute to macroeconomic stabilization. Through a simple econometric analysis, we...

Using a simple model of a coordination game, this paper explores how the information use of individuals affects an optimal committee size. Although enlarging the committee promotes information aggregation, it also stimulates the members’ coordination motive and distorts their voting behavior...

In a two-country model of endogenous growth with international knowledge spillover, corporate income tax competition reproduces the second-best allocation attained by tax harmonization, despite complex externalities. This stems from the positive spillover effect across the border and free...