Portugal is one of the most externally indebted economies in the eurozone. The deeply negative net international investment position (NIIP) suggests that large current account surpluses will be needed in the future to restore external sustainability. Despite significant interest in the scope for...

The federal tax code contains a number of provisions that reduce taxes on personal and business investment income. Many of these provisions fall into two categories: yield exemption provisions, which reduce taxes on investment returns, and tax deferral provisions, which reduce taxes on...

Mass incarceration has many evils. One of them is the length and apparent fixedness of many criminal sentences—a relatively new development in the history of American criminal adjudication. Sympathetic system actors, concerned about this problem, often complain that they lack the ability to...

We provide a political-economy analysis of crime prevention in an arbitrary city in the United States. City residents (voters) elect mayors (politicians) and elected mayors determine the resources to be allocated to crime prevention. Between the two time periods, there is an election....

This study adresses time-dependent orders that are shown to lead to recursive representations based upon a Max-Min dichotomy and introduces a structure that is naturally based upon time-varying multiple discounts. It is argued that this setup naturally provides an enriched understanding of the...

This paper examines the setting of optimal patent length in polluting industries. We find that in the absence of environmental regulation, the patent office offers longer patents when the industry is polluting than otherwise helping mitigate pollution. In the presence of environmental...

We study competitive search in goods markets in a heterogeneous-agent monetary model. The model accounts for three stylized facts connecting inflation to consumption inequality, to price dispersion, and to the speed of monetary payments. With competitive search, individuals’ endogenous...

The funds allocated by the National Recovery and Resilience Plan (NRRP) aim to trigger a multiplier effect on GDP as they are designed to help the recovery after the Covid-19 pandemic. The GDP increase is in turn expected to drive energy consumption up which will increase CO2 emissions, given...