This paper develops an overlapping generations model of Social Security and human capital formation in which - somewhat against the conventional wisdom - an increase in the dependency ratio can lead to a reduced tax burden or less generous social transfers. A higher dependency ratio resulting...

The extent of taxation and redistribution policy is generally determined as a political-economy equilibrium by a balance between those who gain from higher taxes/transfers and those who lose. In a stylized model of migration and human capital formation, we show -- somewhat against the conventi...

Atlanta's rail rapid transit system (MARTA), which began operations in 1979 and has cost U.S. taxpayers and residents of the Atlanta metropolitan area more than $3.5 billion (1990s), has been identified by advocates of new rail systems in other U.S. cities as one of the most successful rail...

This paper solves numerically the intertemporal consumption and portfolio choice problem of an infinitely-lived investor who faces a time-varying equity premium.