Smokers not only choose the number of cigarettes to smoke in any given period on the basis of price, they also choose the intensity with which to smoke - that is, how much nicotine to inhale. The possibility that quantity-reducing tax policies may be mitigated, or even completely offset, by...

While the empirical literature on smoking bans is extensive, little theory has been developed. This paper examines the welfare impact of smoking bans in an economy where smokers’ utility is reduced by a workplace/public place ban. The government has two instruments - increasing the price...

Smoking bans in the workplace and public places are now ubiquitous. While indices of such controls are commonly included in econometric models, there exists little theory that validates or analyzes them. This paper first proposes a theoretical model of maximizing behaviour on the part of smokers...

This paper is a contribution to the ongoing debate on the benefits and drawbacks of bank revenue diversification. Revenue diversification may benefit banks if diversified activities are inherently less risky and possess high returns, while it may hurt banks if diversified activities are more...

This paper reexamines a recent contribution to the theory of wealth accumulation under income uncertainty by Ricardo Caballero in this Review. First we develop a more general model which generates a richer variety of results and this enables us to place the role of income uncertainty into a more...