Structural vector auto-regressions (SVARs) are used to simulate US carbon taxes, treating price plus tax as exogenous. These reduce CO2 and GDP. If this fall in GDP is compensated to leave Disposable Income unchanged, the added income drives further declines in CO2, but also lower GDP....

Vector auto-regressions (VARs) are used to simulate US carbon taxes, treating price plus tax as exogenous. These reduce CO2 and GDP. If the fall in GDP is compensated by a fiscal stimulus to leave Disposable Income unchanged, the added income drives further declines in CO2, but also lower GDP....

Despite its abandonment in theoretical work, a literature search shows that variation in consumer surplus (VCS) is the overwhelming choice in applied work -- not compensating variation (CV) or equivalent variation (EV). How can this be explained? Besides the obvious ease of computation, there...

The authors present a classroom experiment designed to illustrate key concepts of third-degree price discrimination. By participating as buyers and sellers, students actively learn (1) how group pricing differs from uniform pricing,(2) how resale between buyers limits a seller's ability to price...

In this paper, the relation between inequality and welfare index "reversals" is characterized. By the identification of these reversals, upper and lower bounds are established for Atkinson's parameter of inequality aversion. This exercise shows that a level of inequality aversion high enough to...

The Condorcet paradox is a classic example of the power of agenda setting how it can determine the political outcome. A classroom voting game shows how alliances between voting blocs can determine an agenda. Agreements on how to vote after the agenda is set will be broken, however, if the...