Common Agency and Coordination: General Theory and Application to Tax Policy
AbstractWe develop a model of common agency with complete information and general preferences with non-transferable utility, and prove that the principals'Nash equilibrium in truthful strategies implements an efficient action. We apply this theory to construct a positive model of public finance, where organized special interests acan lobby the government for consumer and producer taxes or subsidies and targeted lump-sum taxes or transfers.
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Bibliographic InfoPaper provided by Tel Aviv in its series Papers with number 11-96.
Length: 31 pages
Date of creation: 1996
Date of revision:
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Postal: Israel TEL-AVIV UNIVERSITY, THE FOERDER INSTITUTE FOR ECONOMIC RESEARCH, RAMAT AVIV 69 978 TEL AVIV ISRAEL.
Web page: http://econ.tau.ac.il/research/foerder.asp
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Other versions of this item:
- Dixit, A. & Helpman, E., 1996. "Common Agency and Coordination: General Theory and Application to Tax Policy," Papers 179, Princeton, Woodrow Wilson School - Public and International Affairs.
- Dixit, Avinash K & Grossman, Gene & Helpman, Elhanan, 1996. "Common Agency and Coordination: General Theory and Application to Tax Policy," CEPR Discussion Papers 1436, C.E.P.R. Discussion Papers.
- D70 - Microeconomics - - Analysis of Collective Decision-Making - - - General
- D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
- C79 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Other
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- Lahiri, Sajal & Raimondos-Møller, Pascalis, 2000. "Special Interest Politics and Aid Fungibility," CEPR Discussion Papers 2482, C.E.P.R. Discussion Papers.
- Stephen Coate, 1999.
"An Efficiency Approach to the Evaluation of Policy Changes,"
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7316, National Bureau of Economic Research, Inc.
- Coate, Stephen, 2000. "An Efficiency Approach to the Evaluation of Policy Changes," Economic Journal, Royal Economic Society, vol. 110(463), pages 437-55, April.
- Rafael S. Espinosa Ramirez & Ana Torres Mata, 2004. "Corrupcion, inversion extranjera directa y reformas institucionales," EconoQuantum, Revista de Economia y Negocios, Universidad de Guadalajara, Centro Universitario de Ciencias Economico Administrativas, Departamento de Metodos Cuantitativos y Maestria en Economia., vol. 1(1), pages 17-39, Julio-Dic.
- Marcel Vaillant, 1998. "Endogenous number of lobby groups in a specific factor trade model," Documentos de Trabajo (working papers) 0198, Department of Economics - dECON.
- Schleich, Joachim & Orden, David, 1996. "Efficient choice among domestic and trade policies in the Grossman-Helpman Interest-Group Model," Bulletins 7458, University of Minnesota, Economic Development Center.
- Cecilia Testa, 2003.
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41, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE.
- Cecilia Testa, 2003. "Government corruption and legislative procedures: is one chamber better than two?," LSE Research Online Documents on Economics 6642, London School of Economics and Political Science, LSE Library.
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