We extend the nonparametric literature on partially identified probability distributions and use our analytical results to provide sharp bounds on the impact of universal health insurance on provider visits and medical expenditures. Our approach accounts for uncertainty about the reliability of...

A measure of "true" disability is constructed as a continuous index of unobserved work limitation using information from the Health and Retirement Study. Estimates from a simultaneous model of work participation, disability, and income flows suggest that nonworkers tend to substantially...

This paper considers the relative efficiency of ad valorem and unit taxes in imperfectly competitive markets. We provide a simple proof that ad valorem taxes are welfare-superior to unit taxes in the short run when production costs are identical across firms. The proof covers differentiated...

On Dec. 10, 1995, the Philadelphia Eagles beat the Dallas Cowboys 20-17 in overtime after the Cowboys twice failed near the end of regulation to convert on a fourth down play in their own territory. Coach Switzer's decision not to punt was roundly vilified in the national sports media as...

In this paper, we investigate the complex interrelations among work-time, wages, and health identified in the Grossman model of the demand for health. Hansen's generalized method of moments techniques are employed to estimate a 3-equation simultaneous model designed to capture the time dependent...

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This paper studies how optimal wage tax conclusions from the classic two-period life-cycle model of human capital accumulation are affected by endogenizing the number of taxpaying workers. In the absence of a corrective policy, young individuals underinvest in human capital from a social...

We analyze the incidence of ad valorem and unit excise taxes in an oligopolistic industry with differentiated products and price-setting (Bertrand) firms. Both taxes may be passed on to consumers by more than 100 percent, and an increase in the tax rate can increase short run firm profits (and...

Implications of income uncertainty for socially efficient redistribution are examined in a utilitarian framework. Counterintuitively, a policymaker may respond optimally to a negative utility shock in the economy by redistributing income away from those who suffered the shock. Holding expected...

A worker's decision whether to apply for public transfers may depend not only on his expected level of foregone labor earnings but also on his degree of uncertainty about such earnings. This paper provides theory and evidence about the effects of earnings and eligibility uncertainty on...