EconPapers    
Economics at your fingertips  
 

Government Information Transparency

Facundo Albornoz (), Joan Esteban () and Paolo Vanin ()

No 392, Working Papers from Barcelona Graduate School of Economics

Abstract: This paper studies a model of announcements by a privately informed government about the future state of the economic activity in an economy subject to recurrent shocks and with distortions due to income taxation. Although transparent communication would ex ante be desirable, we find that even a benevolent government may ex-post be non-informative, in an attempt to countervail the tax distortion with a 'second best' compensating distortion in information. This result provides a rationale for independent national statistical offices, committed to truthful communication. We also find that whether inequality in income distribution favors or harms government transparency depends on labor supply elasticity.

Keywords: Government announcements; cheap talk; asymmetric Information; Inequality (search for similar items in EconPapers)
JEL-codes: D82 E61 (search for similar items in EconPapers)
Date: 2009-05
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
https://www.barcelonagse.eu/sites/default/files/working_paper_pdfs/392.pdf (application/pdf)

Related works:
Working Paper: Government Information Transparency (2010) Downloads
Working Paper: Government Information Transparency (2009) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bge:wpaper:392

Access Statistics for this paper

More papers in Working Papers from Barcelona Graduate School of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Bruno Guallar ().

 
Page updated 2020-05-24
Handle: RePEc:bge:wpaper:392