This paper provides an analytical characterization of Markov perfect equilibria in a model with repeated voting, where agents vote over distortionary income redistribution. A key result is that the future constituency for redistributive policies depends positively on current redistribution, since this a¤ects both private investments and the future distribution of voters. The model features mult...

Increased integration of labour and capital markets creates significant challenges for the welfare states of modern Europe. Taxation of capital and labour that finances extensive programs of cash and in-kind redistribution creates incentives for capital owners and workers to locate in regions where they obtain favorable fiscal treatment. Competition among countries for mobile resources constrai...

Governments use fiscal and monetary policies to direct the economy toward economic expansion. However, both could have impacts on environment. The study investigates effects of policy, energy consumption growth carbon dioxide emissions for Turkish from 1978 2021 with novel nonlinear bootstrapping NBARDL NBVARDL causality testing. methods are robust degenerate cointegration. By differentiating b...

During the financial crisis in Asian countries such as Thailand, macro-economic aggregates were used to portray the health or state of the impacted economy. Negative GDP growth was taken to indicate a fall in household welfare, for example. Initially high interest rate policies to encourage foreign (re)investment and subsequent expansionary monetary and fiscal policies were the result. On top o...

How do macro variables such as aggregate consumption, aggregate money demand, prices, and interest rates vary in response to government attempts to redistribute income across agents through selective tax-transfer policies? This question is investigated for an overlapping generations model consisting of heterogeneously endowed three-period lived agents. In the presumably most favorable case for ...

Expansionary monetary policy combined with unconventional measures led to a decline in the profitability of U.S. and European banks. This paper studies whether such also affect asset concentration banking sector. The findings this research add value previous research, taking step deeper into examining consequences expansionary policy. It is found that reductions central bank?s (ECB?s) key rate ...

EUROPEAN GOVERNMENTS REDISTRIBUTE income among their citizens on a much larger scale than does the U.S. government. European social programs are more generous and reach a larger share of citizens. European tax systems are more progressive. European regulations designed to protect the poor are more intrusive. In this paper we try to understand why. The literature on the size of government is ric...