We consider a model of social interactions in which agents are assumed to acquire information from others through a certain sampling process that generates an influence network. These networks comprise a wide array of options depending on the level of correlation assumed between agents' in and...

This paper studies the sensitivity of provision of public inputs to changes in the specification of technology and consumer preferences. We consider a simple model in which the government, with recourse to three different tax settings (a lump-sum tax, a tax on labour and a tax on economic...

In a model where trade unions dominate the labor market, a relationship is derived between the rate of unemployment and the provision of a public input in the production. This relationship implies that for conventional rates of unemployment, the public input will be overprovided compared to the...

This paper describes a new method for solving non-standard constrained optimization problems for which standard methodologies do not work properly. Our method (the Rational Iterative Multisection -RIM- algorithm) consists of different stages that can be interpreted as different requirements of...

This paper studies the optimal level of public inputs under two different tax settings. With this aim, we adapt the approach by Gronberg and Liu (2001) to the case of productivity-enhancing public spending. We find that it is not analytically clear whether the first-best level of public spending...

This paper describes a new method for solving non-regular constrained optimization problems when standard methodologies do not work properly. Our method (the Rational Iterative Multisection Procedure, RIMP) consists of different stages that can be interpreted as different requirements of...

This paper provides an approach to poverty measurement that relies on the interpretation of poverty as a welfare loss. Our contribution is twofold. On the one hand, we analyse the relationship between individual and aggregate indicators, by introducing the notion of “distributive impact of...

In a recent article, Fragnelli and Gagliardo [Cooperative models for allocating an object, Economics Letters 117 (2012) 227-229] propose several procedures to solve a basic problem of fair allocation. We scrutinize their proposal and contextualize it into recent developments of the literature on...

We explore in this paper the axiomatic approach to the problem of sharing the revenue from bundled pricing. We formalize two models for this problem on the grounds of two different informational bases. In both models, we provide axiomatic rationale for natural rules to solve the problem. We,...

Reliable empirical evidence about the effects of unemployment insurance benefits (UIB) on individuals’ labour market paths is crucial for designing appropriate labour market policies. In particular, medium and long-run effects of the UIB system can differ markedly from short-term impact when...