The first principle of Economics is that every agent is actuated only by self-interest. The workings of this principle may be viewed under two aspects, according as the agent acts without, or with, the consent of others affected by his actions. In wide senses, the first species of action may be...

This paper examines the effects of financial liberalization on asset prices, in the context of an OLG model in which consumers desire to borrow to purchase houses.

We examine how political, institutional, and economic variables affect the likelihood increases in state gasoline taxes.

Conflict and war are typically viewed as the outcome of misperceptions, incomplete information, or even irrationality. We show that it can otherwise. Despite the short-run incentives to settle disputes peacefully , there can be long-term, compounding rewards to going to war when doing better...

We examine three measures of governmental policy: state gasoline taxes, the federal discount rate, and the prime of interest rate (which though set by banks is subject to political influence). All three variables show evidence of irrationality: they are not scale invariant (and thus violate...