Recessions and policy interventions in labour markets in developing countries are characterized not only by changes in the unemployment rate, but also by changes in the proportion of formal or protected jobs. This reallocation between formal and informal jobs is large and occurs mainly because...

The World Bank is delegated the authority to provide long-term stabilization and general purpose balance of payments loans, what the Bank once described as 'program loans'. Yet after a brief period in its early years, the Bank stopped disbursing these loans for an extended period. Why? This...

How much weight should be assigned to a particular factor in explaining an outcome? How should an abstract concept be linked to empirical indicants? These methodological problems—known as the "how much" and "how to" problems, respectively—have raised serious obstacles for ideational...

Productivity is defined as the ratio of outputs to inputs. When applied to the public sector, productivity becomes a key performance indicator that shows how efficiently public resources are employed in providing public services. Until not too long ago productivity in the public sector was...

This paper analyzes the optimal income tax treatment of couples. Each couple is modelled as a single rational economic agent supplying labor along two dimensions: primary and secondary earnings. We consider fully general joint income tax systems. Separate taxation is never optimal if social...

This paper extends the theory and measurement of the marginal cost of public funds (MCF) to account for labor force participation responses. Our work is motivated by the emerging consensus in the empirical literature that extensive (participation) responses are more important than intensive...

This paper analyzes the optimal income tax treatment of couples. Each couple is modelled as a single rational economic agent supplying labor along two dimensions: primary and secondary earnings. We consider fully general joint income tax systems. Separate taxation is never optimal if social...

A large literature evaluating the welfare effects of taxation has examined the role of the labor supply elasticity, and has shown that the estimated welfare effects are highly sensitive to its size. A common feature of this literature is its exclusive focus on hours worked and the associated...

An emerging consensus is that labor force participation is more responsive to taxes and transfers than hours worked. To understand the implications of participation responses for the welfare analysis of tax reform, this paper embeds this margin of labor supply in an explicit welfare theoretic...

A unifying theme in the literature on organizations such as public bureaucracies and private non-profits is the importance of missions, as opposed to profit, as an organizational goal. Such mission-oriented organizations are frequently staffed by motivated agents who subscribe to the mission....