Ordinally single-peaked preferences are distinguished from cardinally singlepeaked preferences, in which all players have a similar perception of distances in some one-dimensional ordering. While ordinal single-peakedness can lead to disconnected coalitions that have a "hole" in the ordering,...

Models using the Rational Expectations Hypothesis (REH) are widely recognized to be inconsistent with the observed behavior of premia in financial markets, as well as other features of asset price dynamics. Moreover, many reasons have been advanced as to why the REH cannot generally represent,...

Even people with income below average will not support high rates of redistribution, because of the prospect of upward mobility: they take into account the fact the they, or their children, may move up in the income distribution, and therefore be hurt by high tax rates. This "intuitive"...

Using the Panel Study of Income Dynamics, we investigate occupational and industrial mobility of individuals over the 1969-1980 and 1981-1992 periods in the U.S. We find that workers changed both occupation and industry more frequently in the later period. Workers, on average, shifted occupation...

Recent research reveals that divorce negatively impacts children's welfare as a consequence of the reduction in monetary and time contributions of the non-custodial parent. When the custody arrangement is sole custody, the variables that link the absent parent to the child are visitations and...

In this paper, we characterize conditions under which interest rate feedback rules wherby the nominal interest rate is set as an increasing function of the inflation rate generate multiple equilibria. We show that these conditions depend not only on the fiscal regime (as emphasized in the fiscal...

Capital income tax policy affects investment by the parent and affiliates of multinational corporations (MNCs). In a model in which technical advances are emobodied in new capital, investment will translate directly into productivity gains. In this paper, I use this framework to guide the growth...

The paper offers reasons indicating that the spillovers from innovation activity are surprisingly large; and argues that individuals who have invested directly or indirectly in the economy's innovation processes can be estimated, conservatively, to obtain less than ten percent of the total...