Skip to main content

Research Repository

Advanced Search

Market distortions and government transparency

Albornoz, Facundo; Esteban, Joan; Vanin, Paolo

Authors

Joan Esteban

Paolo Vanin



Abstract

In this paper, we investigate how government transparency depends on economic distortions. We first consider an abstract class of economies in which a benevolent policy maker is privately informed about the exogenous state of the economy and contemplates whether to release this information. Our key result is that distortions limit communication: even if transparency is ex ante Pareto superior to opaqueness, it cannot constitute an equilibrium when distortions are sufficiently high. We next confirm this broad insight in two applied contexts, in which monopoly power and income taxes are the specific sources of distortions. (JEL: D82, E61)

Citation

Albornoz, F., Esteban, J., & Vanin, P. (2014). Market distortions and government transparency. Journal of European Economic Association, 12(1), https://doi.org/10.1111/jeea.12052

Journal Article Type Article
Acceptance Date May 1, 2013
Online Publication Date Jan 15, 2014
Publication Date Feb 1, 2014
Deposit Date Aug 22, 2016
Publicly Available Date Aug 22, 2016
Journal Journal of the European Economic Association
Electronic ISSN 1542-4766
Publisher Oxford University Press
Peer Reviewed Peer Reviewed
Volume 12
Issue 1
DOI https://doi.org/10.1111/jeea.12052
Public URL http://eprints.nottingham.ac.uk/id/eprint/35635
Publisher URL http://onlinelibrary.wiley.com/doi/10.1111/jeea.12052/abstract
Copyright Statement Copyright information regarding this work can be found at the following address: http://eprints.nottingh.../end_user_agreement.pdf

Files

AEV_JEEA_2nd_revision.pdf (329 Kb)
PDF

Copyright Statement
Copyright information regarding this work can be found at the following address: http://eprints.nottingham.ac.uk/end_user_agreement.pdf





You might also like



Downloadable Citations