In this paper we have developed a general equilibrium model in which the social welfare effects of the two major govenment health care programs, Medicare and Medicaid, and the special tax treatment of employer provided medical benefits can be simultaneously evaluated.

This paper critically evaluates the Federal Reserve's p* model of inflation, and develops a model of national income determination implicit in the p* formulation. We use this model to forecast the future paths of key macroeconomic variables and investigate its behavior under a variety of...

We study how the allocation of government expenditures between two major outlays -- education and pay-as-you-go social security -- affects income distribution in an economy with heterogeneous agents.