Governments around the world operate personal income tax systems but most governments go to considerable lengths to mitigate the distortions caused by the interest tax component of the income tax. A popular antidote is the tax deferred savings plan, TDSP, (e.g., RRSP in Canada or 401(k) in the...

A decline in drinking and driving could be due to stricter penalties as well as enhanced media publicity, which increases public knowledge of drinking and driving laws. However, most research fails to control for the effects of increased media coverage. Employing a unique data set consisting of...

This paper analyses a two-period foreign-aid model where assistance can be given in the form of consumption or population control aid.

This paper presents a simple two-factor model of nominal term structure of interest rates, in which the log-price kernel has an autoregressive drift process and a nonlinear GARCH volatility process. With these two state-variable processes, closed-form solutions are derived for zero-coupon bond...

This paper develops and analyzes a macroeconomic model in which aggregate growth and fluctuations arise from the discovery and diffusion of new technologies; there are no exogenous aggregate shocks. The temporal behavior of aggregates is driven by individuals' efforts to innovate and/or make use...

This paper examines how the first-best models of compensation based on the agents' talents and responsibilities analyzed in some recent contributions can be extended to a second-best context. A few social criteria are proposed and compared to alternative approaches by Roemer and Van de gaer.