Read my lips : the political economy of information transmission
AbstractThe paper studies credible information transmission by governments. A group of heterogenous individuals have to make private investment and labour supply decisions while relying on the government for information about investment returns. The government consists of an elected citizen who chooses a redistributive strategy in addition to providing information. We give conditions under which the outcome leads to overor under-investment in high return activities and the outcome is Pareto efficient.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by London School of Economics and Political Science, LSE Library in its series LSE Research Online Documents on Economics with number 2169.
Length: 34 pages
Date of creation: Jul 1998
Date of revision:
Political economy; cheap talk; redistribution; development.;
Other versions of this item:
- Timothy Besley & Rohini Pande, 1998. "Read My Lips: The Political Economy of Information Transmission," STICERD - Theoretical Economics Paper Series 355, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE.
- Tim Besley & Rohini Pande, 1998. "Read my lips: the political economy of information transmission," IFS Working Papers W98/13, Institute for Fiscal Studies.
- H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
- H10 - Public Economics - - Structure and Scope of Government - - - General
- O12 - Economic Development, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
- D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Osborne, Martin J & Slivinski, Al, 1996.
"A Model of Political Competition with Citizen-Candidates,"
The Quarterly Journal of Economics,
MIT Press, vol. 111(1), pages 65-96, February.
- Martin J. Osborne & Al Slivinksi, 1995. "A Model of Political Competition with Citizen-Candidates," Department of Economics Working Papers 1995-01, McMaster University.
- Kenneth Rogoff, 1987.
"Equilibrium Political Budget Cycles,"
NBER Working Papers
2428, National Bureau of Economic Research, Inc.
- Tim Besley & Stephen Coate, .
"An Economic Model of Representative Democracy,"
Penn CARESS Working Papers
ecf70d639d700dba5327ab0c8, Penn Economics Department.
- Timothy J. Feddersen & Wolfgang Pesendorfer, 1995.
"The Swing Voter's Curse,"
1064, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- Meltzer, Allan H & Richard, Scott F, 1981. "A Rational Theory of the Size of Government," Journal of Political Economy, University of Chicago Press, vol. 89(5), pages 914-27, October.
- Matthews, Steven A, 1989. "Veto Threats: Rhetoric in a Bargaining Game," The Quarterly Journal of Economics, MIT Press, vol. 104(2), pages 347-69, May.
- Peter A. Diamond & J. A. Mirrlees, 1968. "Optimal Taxation and Public Production," Working papers 22, Massachusetts Institute of Technology (MIT), Department of Economics.
- V. Crawford & J. Sobel, 2010.
"Strategic Information Transmission,"
Levine's Working Paper Archive
544, David K. Levine.
- Coate, Stephen & Morris, Stephen, 1995. "On the Form of Transfers in Special Interests," Journal of Political Economy, University of Chicago Press, vol. 103(6), pages 1210-35, December.
- Stein, Jeremy C, 1989. "Cheap Talk and the Fed: A Theory of Imprecise Policy Announcements," American Economic Review, American Economic Association, vol. 79(1), pages 32-42, March.
- Lagunoff, Roger, 2006.
"Credible communication in dynastic government,"
Journal of Public Economics,
Elsevier, vol. 90(1-2), pages 59-86, January.
- Roger Lagunoff, 2002. "Credible Communication in Dynastic Government," Wallis Working Papers WP34, University of Rochester - Wallis Institute of Political Economy.
- Roger Lagunoff, 2002. "Credible Communication in Dynastic Government," Game Theory and Information 0203003, EconWPA.
- Roger Lagunoff, 2002. "Credible Communication in Dynastic Government," Working Papers gueconwpa~02-02-04, Georgetown University, Department of Economics.
- Paul Heidhues & Johan Lagerlöf, 2000.
"Hiding Information in Electoral Competition,"
CIG Working Papers
FS IV 00-06, Wissenschaftszentrum Berlin (WZB), Research Unit: Competition and Innovation (CIG), revised Feb 2002.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Lucy Ayre).
If references are entirely missing, you can add them using this form.