Many empirical income distributions are complicated by the existence of a second mode, found in the lower range of incomes. This phenomenon can be generated by the labour supply effects of means-tested transfer payments and the associated high effective marginal tax rates which have strong...

Wage functions provide much useful descriptive information about those characteristics of individuals which are associated with relatively high or low wage rates. In any cross-sectional survey there are many individuals who are not working at the time the survey is carried out. Such people may...

This paper explores an approach to modelling the income distribution which involves both deterministic and stochastic components. The model is used to estimate the changing distribution of income with age for New Zealand males and females.

Institutions that form to reduce moral hazard often eliminate discretion and pool the actions of heterogeneous agents. An unintended consequence of this pooling is that agents' types cannot be determined by their actions. While in the short run such mechanisms may be optimal, in the long run...

In this paper we examine the trends in the prices of natural resource commodities in Australia. The existing literature predicts rising prices for minerals, indicative of scarcity. We present a menu of tests to characterise the observed trends in the prices of 12 resources and do not find any...

We derive conditions under which all sellers bargain in (the Nash) equilibrium and yet other conditions under which all sellers post fixed prices. Some fraction of buyers have zero search costs but buyers are otherwise identical.

The access price is the charge that a network manager charges to other firms to carry traffic (whether it initiates it or finalizes it) through the network. This charge has gained importance as the regulation of formerly vertically integrated monopolies in some industries has opened them, at...

It has been shown that if buyers have zero search cost and the remainder a common positive search cost, and sellers post prices, then there is a unique symmetric Nash equilibrium-sellers choose a price distribution. We show that increasing the number of search cost types results in another...

This paper studies the determinants of Edgeworth Cycles, price leadership and coordination in retail gasoline markets using daily station-level price data for 110 markets in Ontario, Canada for 2007-2008. We find an “inverse-U” relationship between markets’ propensity to exhibit price...

This paper empirically studies howconsumers respond to retail gasoline price cycles. Our analys is uses new station-level price data from local markets in Ontario, Canada, and a unique market-level measure of consumer responsiveness based onweb traffic fromgasoline price reportingwebsites. We...