In this paper the behavior of a tax-collecting government (a tax office) when imposing a quantity-tax to firms is analyzed along a two-period signaling model. Each taxpayer privately knows its technological attributes, while third parties—the tax office among them—have only a prior belief...

This article calculates the sheepskin effect on wages in Cali’s labor market, where additional profitability on wages when possessing a high school degree is 25 percent and 12 percent for March and September of 2000, and 45 percent and 37 percent for the same months, respectively, when...

This paper tests Bester's (1985, 1987) prediction about the separating role ofcontracts that involve both interest rates and collateral in credit markets. To test thisprediction we use data from natural credit markets and controlled experiments. Using asample of credits to small and medium size...