Using the Mirrlees optimal income tax model with a maxi-min social welfare function, we derive conditions for a decreasing marginal tax rate throughout the skill distribution, a strictly concave tax function in income and a single-peaked average tax schedule. With additive preferences and a...

Should income transfers be conditional upon personal characteristics of the potential recipients (the so-called “tagging”) or should they only be tied to reported incomes ? This question is addressed in a partial equilibrium setting distinguishing two types of jobs and a distribution of...

With an overlapping generations model, Williamson and Jones [1983] demonstrated that the long-run savings ratio in the U.S. was not affected by the introduction and the reform of the unfunded social security system. This paper extends their model by including a production sector, endogenous...

The paper argues that it is not clear where P. Van Parijs sets the borderline between the economic modelable of explaining many seemingly disparate, but not all, social phenomena - and evolutionary models. Sometimes it seems that evolutionary models are required in situations when people behave...

Duménil and Levy's Economics of the Profit Rate makes major contributions to our theoretical and empirical understanding of advanced capitalist economies. Questions and problems for further research raised by their work concern their definition of stability, the relation of finance to...

This paper is concerned with dynamic factor demand systems. First, for the intertemporal expected profit maximization problem gi- ven quadratic adjustment costs, it is shown that interrelations between factor inputs result from specific characteristics of the innovations in the technology - not...

The taxation of income is usually criticized for the efficiency loss that results from distorting the intertemporal consumption decision. This argument is rejected in a world where the return to savings is random. It is shown that a distorting marginal tax on uncertain interest income serves as...

The efficiency of demand management policies is considered in a two- sector model of a small and open economy with centralized wage bargaining. Differences in labour demand between sectors are shown to have qualitative implications for the responsiveness of wages to changes in out- put prices....

We consider an economy in which a central government has to decide on the provision and location of an emergency public service the quality of which diminishes with distance. The emergency service has to attend a group of municipalities geographically located in a star-tree-graph. We derive the...

Exchange rate theory has recently been concerned with versions of the uncovered interest rate parity (UIP) condition, as an alternative to purchasing power parity. The UIP condition is examined, for the U.S. Dollar, the Deutschemark, the Yen, and the Swiss Franc all against the Pound Sterling,...