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.
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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:
- Tim Besley & Rohini Pande, 1998. "Read my lips: the political economy of information transmission," IFS Working Papers W98/13, Institute for Fiscal Studies.
- 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.
- 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
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