Date of Original Version

10-2007

Type

Article

Abstract or Description

This paper considers political credibility of allocations in settings with dynamic private information. It embeds a benchmark dynamic moral environment into political economy games which feature repeated voting over mechanisms. Optimal politically credible allocations are shown to solve virtual planning problems with social discount factors in excess of the private one.

DOI

10.1016/j.jmoneco.2007.10.002

Share

COinS
 

Published In

Journal of Monetary Economics , 55, 1, 129-151.