terms of both consumption and leisure time. Drawing on household panel data in rural Mexico, I find that migration increases … non-migrants' consumption, but that this consumption gain cannot be explained by labor supply adjustments. Migration …

This paper shows that the combination of habit formation - present consumption creating additional consumption needs in …-best setting the optimal solution can be decentralized by a simple "Pigouvian" (paternalistic) consumption tax (along with suitable … lump-sum taxes). In a second-best setting, when personalized lump-sum transfers are not available, consumption taxes may …