The probability of income loss depends on talent and effort. Effort has positive externalities and therefore individuals are awarded status in proportion to their perceived diligence. The social norm requires more effort from individuals perceived as more talented. But talent is private...

This paper addresses transboundary environmental problems in the context of an optimal tax problem, when part of the labor force is mobile across countries. The policy instruments include both commodity taxation and nonlinear income taxation. We show how the tax policy in a noncooperative...

Most previously used measures of immigrant labor market assimilation will be biased if there is non-random emigration of immigrants. We use longitudinal data on immigration to Sweden 1970-1990 to examine the extent and pattern of immigrant emigration and its consequences for measures of...