This article argues that conventional approaches to the treatment of seasonality in econometric investigation are often inappropriate. A more appropriate technique is to allow all regression coefficients to vary with the season, but to constrain them to do so in a smooth fashion. A Bayesian...

If infectious people can infect other people, who in turn can infect others, and so on--the pure infection externality--government subsidies to affect private behavior should equally favor preventive and curative activities, if people recover to become susceptible again. Otherwise, other subsidy...