Address correspondence to David W. Good, PhD, Division of Nephrology, 4.200John Seal}' Hospital E62, University of Texas Medical Branch, Galveston, Texas 77555-0562. j. GEN. PHYSIOL. 9 The Rockefeller University Press 9 0022-1295/94/05/0917/20 $2.00 Volume 103 May 1994 917-936 917 on F ebuary 3, 2013 jgp.rress.org D ow nladed fom Published May 1, 1994

We use a panel of 155 countries for 1970-2010 to study (two-way) causality between government spending, revenue and growth. Our results suggest the existence of weak evidence supporting causality from expenditures or revenues to GDP per capita and provide evidence supporting Wagner’s Law. JEL: C23, E62, H50.

We show that, for n large, there must exist at least nt C(1+o(1))t 2 monochromatic Kts in any two-colouring of the edges of Kn, where C ≈ 2.18 is an explicitly defined constant. The old lower bound, due to Erdős [E62], and based upon the standard bounds for Ramsey’s theorem, is nt 4(1+o(1))t 2 .

We estimate the political economy determinants of budget deficit forecast errors. Since the adoption of the Stability Pact, Eurozone governments have manipulated forecasts before elections. The political orientation and the institutional design of governments also affects the quality of forecasts. JEL classifications: H62, H87, C23, C53, E62

Differential tax analysis is used to show how the optimal mix of inflation tax and direct taxation changes with the relative size of the hidden economy. The larger the relative size of the hidden economy, the smaller the optimal ratio of direct tax to inflation tax. Anecdotal empirical evidence supports this result. JEL Classification: E62, H21, H26, O17.

This paper employs Roback’s locational-equilibrium model of public-goods pricing, crosssectional data from the Census of Population and Housing, and SMSA-level estimates of public capital stocks in order to examine the productive contribution of public capital. I find that public capital has a small positive impact on private output. JEL classification codes: E62, R53

We note some problems in Alesina and Angeletos (2005) and suggest a way to maintain the key insight of that paper, which is that a demand for fairness could lead to di¤erent economic systems such as those observed in France versus the US (multiple equilibria). JEL classi…cation: D31, E62, H2, P16.

We consider optimal government debt maturity in a deterministic economy which the can issue any arbitrary structure and bond prices are function of government’s current future primary surpluses. The sequentially chooses policy, taking into account how choices—which impact policy—feed back prices. show that issuing consols constitutes unique stationary portfolio, as it boosts credibility to poli...

How are the optimal tax and debt policies affected if government can default on its debt? We address this question from a normative perspective in an economy with noncontingent debt, domestic default, labor taxes. On one hand, prevents incurring future distortions associated servicing debt. other risk gives rise to endogenous credit limits that hinder government's ability smooth characterize fi...

In this paper I discuss the role a progressive income tax system and a redistributive pay as you go (PAYGO) social security system can play in insuring and reallocating idiosyncratic as well as aggregate risk. I also argue that the underlying source of market failures generating such a role for government intervention may be crucial when determining the normative consequences of such social ins...