We investigate the optimal nonlinear wage and interest-income taxes with money as an asset, assuming that there are two types of labor, which are not perfect substitutes in production, and that each type is difficult for the policymaker to observe. It is shown that the optimal interest-income...

Assuming horizontal product differentiation and environmental R&D spillovers in duopoly, we analyze the welfare effects of R&D strategies of firms in symmetric equilibrium. When the degree of product differentiation is sufficiently great, firms benefit from technological spillovers by...

We examine the policy implications of relaxing constraints on the educational choice of individuals for economic development. Distinguishing human capital accumulation through schooling and through learning-by-doing and knowledge spillovers, we show that in the earlier stages of development,...

Improvements in environmental quality will boost output production and hence economic growth. However, although environmental abatement equally benefits all economies in the world, it is shown that, if the private productive resources are not yet accumulated sufficiently in low income economies,...

We examine the effect of source-based capital taxation on capital accumulation in countries with endogenous fertility and free international capital mobility. When fertility is constant, a tax cut accelerates domestic capital accumulation through international arbitrage and exerts negative...

With a longer life expectancy, individuals who plan to work when they are old may increase the number of their children. Therefore, when individuals choose the time of retirement, the fertility rate may not necessarily decline but even rise.

Incorporating heterogeneity in preference to having children into an overlapping generations model of a small open economy, we examine the effects of changes in the size of payasyougo (PAYG) social security on fertility choices of individuals and population growth of the economy. It is shown...