The paper studies credible information transmission by governments. A group of heterogenous individuals have to make private investment and labor supply decisions while relying on the government for information about investment returns. The government consists of a an elected citizen who chooses a redistributive strategy in addition to providing information. We give conditions under which the outcome leads to over- or under-investment in high return activities and the outcome is Pareto efficient.
Authors
![Tim Besley](/sites/default/files/styles/square_desktop/public/2022-07/Tim%20Besley.jpg?itok=3EW68rGC)
Research Associate London School of Economics
Timothy is a Research Associate at the IFS and a Professor of Economics and Political Science at the London School of Economics and Political Science.
![Person graphic](/sites/default/files/styles/square_desktop/public/2022-06/IFS-person-graphic.png?itok=hWCtTSrz)
Rohini Pande
Working Paper details
- DOI
- 10.1920/wp.ifs.1998.9813
- Publisher
- IFS
Suggested citation
Besley, T and Pande, R. (1998). Read my lips: the political economy of information transmission. London: IFS. Available at: https://ifs.org.uk/publications/read-my-lips-political-economy-information-transmission (accessed: 4 July 2024).
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