This paper sets up an endogenous growth model to examine the effects of an expansion of defense spending share on inflation, economic growth and welfare. It is found that: (i) an increase of defense spending share will lower the inflation rate and stimulate the economic growth. (ii) from the...

This paper examines the impact of transaction costs on the social efficiency of first-degree price discrimination. Price discrimination requires the producer to expend resources and compels consumers to incur costs. The consideration of producer and consumer transaction costs alters the...

This paper examines how Bertrand competition affects the welfare implications of bundling by a multi-product firm, which is a monopoly over one good and faces a single-product competitor in a second good. We find that the equilibrium bundle price is lower than the sum of the prices of the two...

The Bus Rapid Transit (BRT) for the Satorn/Rajpruek route in Bangkok is characterized by four inbound lanes and four outbound lanes separated by a traffic island. The lanes adjacent to the traffic island are designated as the BRT lane where no vehicles, except the BRT buses, are allowed access....

In this paper, we generalize Kato's (Economics Bulletin, 2008) model by allowing many private firms in the mixed oligopoly setting, rather than the mixed duopoly framework of Kato (2008). By introducing the government's preference for tax revenues into the theoretical framework of mixed...

We show that if firms in an industry engage in third-degree price discrimination, the number of firms in the free-entry equilibrium may be inefficiently low. This result is obtained even with set up costs and a price above marginal cost. We discuss the relevant implications that our result has...

This paper presents an analysis on capital accumulation and social welfare in fiscal federalism and the unitary system by using an overlapping generations model. We introduce three possible cases pertaining to how government tax policy towards individuals could be formulated: the government...

This paper compares the goodness-of-fit of two new types of parametric income distribution models (PIDMs), the kappa-generalized (kG) and double-Pareto lognormal (dPLN) distributions, with that of beta-type PIDMs using US and Italian data for the 2000s. A three-parameter model kG tends to...