We study how tax policies that lower the cost of capital impact investment and labor demand. Difference-in-differences estimates using confidential Census Data on manufacturing establishments show that tax policies increased both investment and employment, but did not stimulate wage or...

Classical theories of exchange rates, such as Mint Par and Purchasing Power Parity (PPP), have the desirable property that they define a network of exchange rates in which no profit by 'compound arbitration' or 'cyclic arbitrage' is possible. Conversely, it will be shown that any network of...

A new and powerful dictatorship result is presented. It is well known that in social choice problems, the negativism of the original Arrow result can be overcome by admitting information based on interpersonal comparisons. But what if individuals in society have different opinions about htese...

An intertemporal voting model is examined where, at each date, there is a pairwise majority vote between the existing chosen state and some other state, chosen randomly. Intertemporal voting simplifies the strategic issues and the agenda setting is as unrestricted as possible. The possibility of...

Although conditions that exhaust the implications of rationality (homogeneity, symmetry, definiteness) are well known, these apply under a single set of constraints. If a situation can be compared with another situation were extra constraints are imposed, there are stronger implications. One...