The hold-up problem in government contracting

Article Abstract:

A general characterization of the ex-ante optimal contract is provided. The two-period public procurement model, which is considered in an incomplete-contract framework, involves the welfare-maximizing government as being able to accomplish ex-ante optimal contracts that guarantee first-best specific investments of both buying and selling parties. Renegotiation, which always raises the ex-ante fixed trade price, inevitably occurs in some states of nature no matter what the underlying supports of cost and benefit distributions are.

Models, Economic aspects, Government purchasing, Public contracts, Government contracts

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Probabilistic voting power in the EU council: the cases of trade policy and social regulation

Article Abstract:

The impact of national policy targets on the distribution of voting power in the European Union's (EU) Council of Ministers was investigated. Using semi-coalition structures, member states were divided into three groups in accordance with their voting behavior on trade policy and social regulation issues. These classifications gave insight into the decision-making process in the EU and the impact of new entrants on policymaking.

Research, Decision-making, Decision making, Powers and duties, European Union. Council of the European Union, Policy sciences

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Wage indexation and the time consistency of government policy

Article Abstract:

The use of wage indexation by left-wing politicians is analyzed. Wage indexation can improve the chances of election since it decreases mean inflation while taking into account voter concerns about unemployment and inflation. The selection of an indexation regime is also dependent on the size of real and nominal shocks faced by the economy and the choice of the policymaker.

Analysis, Indexation (Economics), Wage price policy, Wage-price policy

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