Due to falling fertility and rising life expectancies, a serious financial crisis is looming over the pay-as-you-go pension systems established in many developed countries. The present study demonstrates that falling fertility can partly be explained by the fiscal externalities arising from the...

This study investigates the consequences of revenue-neutral tax reforms on the members of two-person households. The model employed has individual utility functions for household members and allows for household production. General conditions are derived specifying when such tax reforms are...

New and old products differ in two respects: quality and newness. Whereas a higher quality of a new product always benefits consumers, the newness itself benefits some consumers, but not others, and for some, it is even a disadvantage. We capture these features in a Hotelling model of...