This paper examines portfolio theory underpinnings of the familiar IS and LM model to discover a common ground to determine the differences separating the monetarist and income-expenditure approaches. It is emphasized that the LM curve represents portfolio balance conditions rather than full...

This paper analyzes corporate and personal income taxes and inflation on the cost of investing in depreciable and inventory capital in Canada in 1963-78. Changes in rates of inflation and corporate tax rates theoretically have an ambiguous effect on the cost of capital. Tax depreciation and FIFO...

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This paper analyzes the case for integration in a small open economy when all firms and households exploit tax arbitrage opportunities to the fullest possible (legal) extent. The analysis shows that integration does not accomplish the objectives that have been attributed to it. Instead of...

Becker derives the Rotten-Kid theorem -- that a child will not behave in a manner which lowers the parent's income more than it raises the child's -- in a one period setting. Not captured in Becker's analysis is that the family environment can exhibit what others refer to as the Samaritan's...