Mirrlees' seminal article in residential location theory discussed the welfare economics of a town where land is a consumer good. The most remarkable result was that identical individuals should not in general have equal utilities at the social welfare optimum. This paper provides a simple...

This paper uses a general equilibrium model of residential land use to study the effects of the property tax in a closed city. Two different specifications of the production technology for housing are used, and yield similar results. The model is too complicated to be solved in closed form, but...

Firm's inability to monitor employees search efforts results in a tradeoff between risk-bearing and incentive considerations in the design of employment-related insurance. Since the provision of insurance against firm-specific shocks adversely affects workers' incentives to search out better...

This paper uses a general equilibrium simulation model of residential land use to study the long-run effects of transportation changes in a closed city. The effects considered include the aggregate benefits from and income distributional impact of the changes, and the induced alterations in the...

This paper investigates features of an urban economy where there is unpriced transportation congestion. It focusses on the relationship between the market rent on residential land, the shadow rent on residential land, and the shadow rent on land in road use, when road width is arbitrary, and...

This paper extends Becker's 1962 analysis of the effects of training and labor turnover costs on the structure of free market employment contracts to the case where insurance markets are incomplete as a result of imperfect information. It examines the characteristics of the employment contract...

This paper examines the structure of multi-period employment contracts in an economy with identical workers when only incomplete insurance is provided against job-related contingencies, stemming from asymmetric information. The employment contract provides implicit insurance by paying workers...

This paper investigates the effects of an equiproportional transport improvement in a fully-closed monocentric city. It focuses on the impact of the improvement on aggregate and differential land rents, and aggregate transport costs. The elasticity of aggregate transport demand is related to the...

This paper shows that, except in certain limiting cases, competitive equilibrium with moral hazard is constrained inefficient. The first section compares the competitive equilibrium and the constrained social optimum in a fairly general model, and identifies six types of market failure. Each of...

The central result of this paper is that when moral hazard is present, shadow prices in general differ from market prices. To remedy this market failure, the government should introduce differential commodity taxation. Moral hazard causes people to take too little care to prevent accidents. The...