A number of studies have suggested a quantitatively important relationship between public-sector capital accumulation and private sector productivity, with the most compelling evidence derived from analyses of state-level data. Estimates herein of production functions that use standard...

In current discussions of tax reform in the United States, there is considerable controversy concerning the effects of allowing individuals to deduct state and local taxes when calculating their federal income tax liability. Recent econometric work has suggested that federal deductibility of...

There has been an increased interest in the efficacy of industrial policy. We show that policy design for vertically-related industries hinges on the nature of market interactions as well as technological linkages. Using a model in which final-good producers realize productivity gains from...

This paper analyzes the role of liquidity constraints in the formation of new entrepreneurial enterprises. The basic empirical strategy is to determine whether an individual's wealth affects the probability of becoming an entrepreneur, and the conditional amounts of depreciable assets, ceteris...

Despite widespread concern and discussion, no consensus exists concerning the causes of the "infrastructure crisis." We investigate several models of the determination of local public capital expenditures. Using Euler equation methods, we find that the hypothesis that construction spending is...

We revisit the relative merits of employee-based versus employer-based labor market subsidies. While conventional analyses stress the equivalence of these approaches, we find a modest preference for employee-based approaches. Because the population of low-wage workers overlaps, but is not...

Despite widespread concern and discussion, no consensus exists concerning the causes of the "infrastructure crisis" or its implications for the efficiency of government decision-making more generally. We investigate several models of the determination of local public capital expenditures. Using...

Entrepreneurship has been a subject of much recent discussion among academics and policymakers because of the belief that it invigorates the economy -- producing greater productivity, more jobs, and higher economic growth. President George W. Bush promoted his economic plan by pointing to its...