This paper disproves the implication by Modigliani and Miller (1958) that taxation with interest deductibility is an advantage. This paper shows that government and bank are two robbers. Firms and consumers should avoid both of them. This paper advocates that firms should borrow less with there...

This paper works out a feasible measure for judging profit tax. It is the long-run profit rate that matters, not just long-run profit, not just short-run profit. Long-run profit helps a firm determine to enter a business or not, but long-run profit rate indicates which country the firm should...

This paper revamps Harberger's primitive tax theory and obtains completely different results. When his perfectly inelastic supply is corrected, his total net capital income is reduced. The existence of another industry forces the firm of the taxed industry, not the capital owners, to bear the...

Many countries found puzzling when devaluation cannot improve their trade account. This paper proves that the theory they rely on is wrong. Depreciation is always harmful, for it reduces imports, exports, and trade profit. The Marshall-Lerner condition, if any, is always equal to one, and has no...

This paper unfolds and disproves the capital gain theory by Hall and Jorgenson (1967). It points out that investment valuation is a constant and cannot be differentiated, it also distinguishes the difference between valuation and residual value, and reveals the double counting mistake by Hall...

This paper shows that existing presentation of marginal measures is partial and thus incorrect, and proves that such measures can only be displayed in their original graph. This paper fends off any attempt to make marginal change as theory, like demand or supply

This paper disproves the optimal tariff theory. Any tariff or subsidy changes only the relative price, not the offer curve. Its tariff-affected terms-of-trade is actually an export-subsidy policy. This paper confirms that free trade is indeed universally beneficial

This paper disproves Hashimoto's labor theory. His topic is nothing but a bargaining problem. His setup is logically wrong. His solution contradicts his objective. When he abandons his solution to opt for other alternatives, he breaks up his own model. This paper also proves that Hashimoto's...

This paper proves that the model by Grossman and Helpman (1994) produces another singular indifference curve, which can never have any tangency with a standard budget line. Such indifference curve means that the person extremely loves money, and his utility function can be reduced to one...

Growth theory is a dynamic problem, and interest rate must play an important role. This paper proves that Ramsey's interest rate can be very erratic. It then applies Fisher's theory to correct Ramsey's error. Interest rate is an exogenous variable for most people, and it does not vary with their...