We compare the welfare costs of tax distortions of labour supply in one and two member household discrete and continuous labour supply (leisure consumption) choice models. In the discrete models taxes induce a large response from a subset of the population, while the majority of the population...

A seller and a buyer bargain over the terms of trade for an object. The seller receives a perfect signal that determines the value of the object to both players, whereas the buyer remains uninformed. We analyze the infinite-horizon bargaining game in which the buyer makes all the offers. When...

Most "leading" economics departments no longer teach the History of Economic Thought. Prominent macroeconomists nevertheless frequently deploy inaccurate accounts of the earlier development of ideas as rhetorical devices. These same economists have, however, also taught us that an understanding...