This paper analyzes optimal linear taxes on capital and labor incomes in a life-cyclemodel of human capital investment, financial savings, and labor supply with heteroge-nous individuals. A dual income tax with a positive marginal tax rate on not onlylabor income but also capital income is...

We develop models of optimal linear and non-linear income taxation with endogenous human capital formation to explore optimal education subsidies. Optimal subsidies on education ensure efficiency in human capital accumulation and thus play an important role in alleviating the tax distortions on...

A consistent mapping of all complex ramifications (including direct and indirect effects) of variousgreenhouse policies in an open institutional economy requires the use of a general equilibriumframework. From the existing set of available equilibrium models we have selected the...

The effects of a policy measure often reach the consumer only after one or more intermediatesteps, for instance because the measure lowers the cost of an input for an industry producinga consumer good. This paper is concerned with the question how to measure such indirect effectscorrectly under...

This discussion paper has resulted in the publication (2007) 'Order without law? Experimental evidence on voluntary cooperation and sanctioning', 2007, <I>KritV - Kritische Vierteljahresschrift fur Gesetzgebung und Rechtswissenschaft</I>, 90, 1-2, 140-155.In this paper we discuss experimental evidence...</i>

This paper uses the Kaldor-Hicks compensation principle to compute the present value (PV) of a non-marginal future event. Three theoretical results stand out: First, decreasing returns to capital create a wedge between the PV of future generations' willingness to pay (WTP) and the PV of their...

This paper argues that the introduction of a short-sale constraint in the Arrow-Radner frameworkinvalidates standard definitions of complete and incomplete markets. In this constrained set-up,two threshold values with familiar properties arise.The case of a zero short-sale bound set on some...

We develop a model for museum visits and estimate it on a large sample of holders of a museum card that provides free access to all museums. Our model distinguishes two stages, referring to the determination of the number of trips and destination choice and can deal with an effect of income on...

This review considers the role of environmental effects in transport investment appraisal, mainly from the perspective of cost-benefit analysis, the most widely adopted appraisal technique. Although the basic principles of CBA are straightforward, several complications are identified that may...

Proximity to water is appreciated by households. Hedonic analyses that try to measure the value of this amenity are potentially biased by omitted variables as locations close to the water may be selected by households with higher incomes who construct more luxury houses. Since it is difficult to...