The tax reform literature, pioneered by Guesnerie [1977], uses static models but views tax reform as a dynamic process, i.e., as a policy-maker implementing incremental reforms over time. This paper studies tax reform in a dynamic version of the Diamond-Mirrlees-Guesnerie model and focuses on a...

Willig (1976) argues that the change in consumer's surplus is often a good approximation to the willingness to pay for a price change: if the income elasticity of demand is small, or the price change is small, then the percentage error from using consumer's surplus is small. If the price of a...

In this paper we investigate whether local governments react on the welfare benefit levels in neighboring jurisdictions when setting their own benefit levels. We solve the simultaneity problem arising from the welfare game by utilizing a policy intervention; more specifically, we use a centrally...

This paper provides a preliminary investigation into the lifetime cost of children upon a household's lifetime wealth. By comparing the lifetime cost function of a household with children compared to the lifetime cost function of a household without children, an intertemporal equivalence scale...

This paper focuses on the identification and estimation of the intertemporal and intratemporal elasticities of substitution for the wife and separately for the husband using individual Euler equations. To that end, the household is represented as a group of agents making joint decisions. By...

Efficient investment in human capital is a subject of great concern among economists. By means of an overlapping-generations macrodynamic model with credit constraints, imperfect insurance and exogenous labor supply, we appraise inefficiencies related to misinvestment in human capital and...

This paper develops and estimates a dynamic model of employment and child care decisions of women after birth in order to evaluate the effects of mothers' decisions on children's cognitive ability. I use data from the NLSY to estimate the model. The results suggest that the effects of maternal...

Building upon a long tradition in sociology, economists have recently turned their attention to the analysis of social networks. The present paper adds to this emerging literature by proposing a different approach to social-network formation. As in the model of Jackson and Wolinsky (1996),...

The adverse effects of excessive alcohol consumption are well-known. Of great concern to policy makers is to understand the potentially different drivers for consumers of different levels of alcohol consumption. Using unit record data from the Australian Drug Strategy Household Surveys, this...

Entre 1984 y 2002 se presentó una caída permanente en la propo0rción de hogares colombianos que utilizan personal asalariado para trabajo doméstico. Utilizamos un modelo teórico de la decisión del hogar de tener o no tener servicio doméstico y estimamos dicha probabilidad. Ésta se ve...