Fixed price payments for treatment of patients with a specified diagnosis are widespread in both US Medicare and the British NHS even though there are substantial variations in the cost of treatment. Theory suggests that, when there is asymmetric information about those costs, total payment can...

A simple model of the Arrow-Debreu type is used to analyze the short-run performance of an employee-controlled wage-maximizing economy. It is found that an increase in demand, caused by a shift in consumers' preferences, leads to a fall in a good's equilibrium price, which indicates that...

This study provides evidence on optimal commodity tax rates in Australia, and on their sensitivity to demand function and demographic specification. The optimal tax algorithm, proposed and used here, allows the social welfare weights to depend on prices, household composition and aggregate...

The Almost Ideal Demand System can be made integrable by a slight change in its specification.

We propose a method to measure the welfare cost of economic fluctuations that does not require full specification of consumer preferences and instead uses asset prices. The method is based on the marginal cost of consumption fluctuations, the per unit benefit of a marginal reduction in...