Gradstein, Mark

Self-imposition of public oversight / Mark Gradstein .-- , 2018


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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.


AUTOLIQUIDACIONES
IMPUESTOS
ESTADOS UNIDOS

Public Choice 0048-5829 v. 175, n. 1-2, April 2018, p. 95-109

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