While examining the macroeconomic effects of increased government control of the informal sector, this paper develops a …

keep control if they - irrationally - believe that they can increase the probability of getting their preferred task by … keeping control. We thus document that illusion of control exists in a controlled environment with monetary incentives, and … that illusion of control might affect people's pursuit of authority. …

We analyse the determination of taxes on harmful goods when consumers have self-control problems. We show that under … reasonable assumptions, the socially optimal corrective tax exceeds the average distortion caused by self-control problems …. Further, we analyse how individuals with self-control problems would vote on taxes on the consumption of harmful goods, and …