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This paper investigates the role of performance voting in solving the capital levy problem. In a representative democracy, voters can use elections to protect their property by holding politicians accountable for the tax policies they implement. We characterize the set of tax policies that can be sustained by symmetric performance standards and show when this set contains the second-best (Ramsey) tax policy. D

The aim of this paper is to examine whether the development of waste recycling activities can be a source of economic fluctuations. We assume that the recycling sector has four fundamental characteristics. (i) The production factors are restricted by the production of the last period. (ii) These production factors are waste for which the price determination is noncompetitive. (iii) The sector produces a recycled good, which is a perfect substitute for the primary good. (iv) It reduces the waste stream. We consider the simplest economy, with an infinitely lived agent and a life-cycle hypothesis for the goods. We show that the equilibrium is unique and is always determinate. In spite of the lack of indeterminacy, however, our economy can display cyclical behavior, depending on some usual conditions on parameters. Namely, the steady state may undergo a flip bifurcation or a Hopf bifurcation.

International audienceOut-migration concerns foreigners who decide to leave a country where they used to live. Taking advantage of the OECD bilateral IMS database, we analyze the short-run determinants of out-migration using a panel of Schengen countries between 1995 and 2011. We find that out-migration is counter-cyclical: foreign nationals tend to leave host countries with high unemployment, while they are likelier to stay in good times (i.e. low unemployment). Typically, a 10 % increase in the unemployment rate leads to a 5 % increase in out-migration. Thus, short-term economic fluctuations have the same qualitative effect as restrictive migration policies in economic downturns. However, we find mixed evidence for the role of economic cycles in the potential destination countries of those flows. Movers appear to be sensitive to unemployment changes in their country of origin, but they do not seem to be sensitive to business cycles in potential destinations