Chib and Hamilton (2000) discuss Bayesian estimation of treatment response models subject to the restriction that the cross-regime correlation parameter is zero. This note points out important consequences of that restriction, and argues that the range of applicability of such an approach is...

The present paper formally models household labor supply decisions and establishes sufficient conditions established, such as the possibility of multiple equilibria in the labor market and how the announcement of a minimum wage policy can result in an overall lowering of wages and also give rise...

The spectrum auctions have heightened our perceprion of the electromagnetic spectrum. This invisible resource is one of the most valuable and important resource of our time.

This paper constructs a model where otherwise identical economies having different initial conditions are in different steady-states in autarky because skill accumulation is subject to credit constraint. In a two country world it is shown how international trade in goods can cause complete...

We propose that people value not only the goods they consume, but also their freedom, which increases with the number of bundles their budget allows them to buy. We apply this idea to show that citizens may favor proportional taxes over lump-sum taxes, progressive taxes over proportional taxes,...

We measure values of time and reliability from 1998 data on actual behavior of commuters on State Route 91 in Orange Country, California, where they choose between a free and a variably-tolled route. For each route at each time of day and for each day of the week, the distribution of travel...

Government often appears to have the objective of inducing firms to make investments that will help achieve regulatory goals: Regulations of automotive fuel efficiency and emissions are two examples. We find rhat a tax on the activity causing the externality may be unable in induce the desired...