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Intertemporal Substitution in Macroeconomics

Mankiw, N. Gregory - 2011

Modern neoclassical theories of the business cycle posit that aggregate fluctuations in consumption and employment are the consequence of dynamic optimizing behavior by economic agents who face no quantity constraint. In this paper, we estimate an explicit model :f this type. In particular, we...

Persistent link: https://www.econbiz.de/10013132070

The Optimal Taxation of Height : A Case Study of Utilitarian Income Redistribution

Mankiw, N. Gregory - 2011

Should the income tax include a credit for short taxpayers and a surcharge for tall ones? The standard Utilitarian framework for tax analysis answers this question in the affirmative. Moreover, a plausible parameterization using data on height and wages implies a substantial height tax: a tall...

Persistent link: https://www.econbiz.de/10013134658

Trade Liberalization in a Multinational-Dominated Industry : A Theoretical and Applied General-Equilibrium Analysis

Hunter, Linda - 2010

A theoretical model is developed and applied to the North American auto industry, motivated by the possibility of US-Mexico free trade. Special features of the model include (1) significant scale economies at the plant level, (2) imperfect competition among firms, (3) joint ownership of plants...

Persistent link: https://www.econbiz.de/10013139985

Environmental Policy When Market Structure and Plant Locations are Endo-Genous

Markusen, James R. - 2010

A two-region, two-firm model is developed in which firms choose the number and the regional locations of their plants. Both firms pollute and, in this context, market structure is endogenous to environmental policy. There are increasing returns at the plant level, imperfect competition between...

Persistent link: https://www.econbiz.de/10013141089

An Exploration of Optimal Stabilization Policy

Mankiw, N. Gregory - 2011

This paper examines the optimal response of monetary and fiscal policy to a decline in aggregate demand. The theoretical framework is a two-period general equilibrium model in which prices are sticky in the short run and flexible in the long run. Policy is evaluated by how well it raises the...

Persistent link: https://www.econbiz.de/10013124860

Per-Capita Income as a Determinant of International Trade and Environmental Policies

Markusen, James R. - 2013

International trade policy analysis has tended to focus on the production side of general equilibrium, with policies such as a tariff or carbon tax affecting international and internal income distributions through a Heckscher-Ohlin nexus of factor intensities and factor endowments. Here I move...

Persistent link: https://www.econbiz.de/10013071509

International Welfare and Employment Linkages Arising from Minimum Wages

Egger, Hartmut - 2010

We formulate a two-country model with monopolistic competition and heterogeneous firms to reconsider labor market linkages in open economies. Labor-market imperfections arise by virtue of country-specific real minimum wages. Two principal experiments are considered. First, we show that trade...

Persistent link: https://www.econbiz.de/10013151811

Optimal Taxation in Theory and Practice

Mankiw, N. Gregory - 2010

We highlight and explain eight lessons from optimal tax theory and compare them to the last few decades of OECD tax … policy. As recommended by theory, top marginal income tax rates have declined, marginal income tax schedules have flattened … theory. Moreover, some of theory's more subtle prescriptions, such as taxes that involve personal characteristics, asset …

Persistent link: https://www.econbiz.de/10013152503

An Asset Allocation Puzzle

Canner, Niko - 2008

This paper examines popular advice on portfolio allocation among cash, bonds, and stocks. It documents that this advice is inconsistent with the mutual-fund separation theorem, which states that all investors should hold the same composition of risky assets. In contrast to the theorem, popular...

Persistent link: https://www.econbiz.de/10012774873

Vertical Multinationals and Host-Country Characteristics

Zhang, Kevin H. - 2008

The literature on multinationals and developing countries has examined the causalityquot; running from direct investment to changes in country characteristics (wages skills, etc.) and also the opposite direction of causality, from existing country characteristics toquot; inward direct...

Persistent link: https://www.econbiz.de/10012774926