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Self-imposition of public oversight

Author

Listed:
  • Mark Gradstein

    (Ben Gurion University
    CEPR
    CESifo
    IZA)

Abstract

We argue that policymakers may have personal interests in policy restraints channeled through public oversight. Self-imposition of public oversight can be beneficial for the policymaker because it may help alleviate the dynamic inconsistency problem that she otherwise faces. In the setting studied herein, self-imposed public oversight takes the form of a ceiling on tax rates, which can be overridden only with the legislature’s consent. Such a mechanism is shown to credibly commit the policymaker to future tax restraint, thus inducing larger productive effort.

Suggested Citation

  • Mark Gradstein, 2018. "Self-imposition of public oversight," Public Choice, Springer, vol. 175(1), pages 95-109, April.
    • Handle: RePEc:kap:pubcho:v:175:y:2018:i:1:d:10.1007_s11127-018-0515-7
    DOI: 10.1007/s11127-018-0515-7
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    More about this item

    Keywords

    Legislative oversight; Tax caps; Dynamic inconsistency;
    All these keywords.

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government

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