We wish to study optimal dynamic nonlinear income taxes. Do real-world taxes share some of their features? What policy prescriptions can be made? We study a two-period model, where the consumers and government each have separate budget constraints in the two periods, so income cannot be...

In his 1964 book, W. Alonso proposed several concepts of land-use equilibrium in terms of discrete population. However, the so-called new urban economics has been concerned exclusively with continuous population models. It is the authors' belief that in order to develop logical foundations for...

This article presents a micromodel of knowledge creation through the interactions among a group of people. The model features myopic agents in a pure externality model of interaction. Surprisingly, for a large set of initial conditions we find that the equilibrium process of knowledge creation...