The new agricultural biotechnologies that are generating genetically modified organisms (GMOs) are seen as exciting and valuable developments by many people who recognise the improvements in production efficiency that they offer. Others, however, are objecting strongly to their use. Both...

This paper evaluates the efficiency and distributional effects of trade liberalization in the context of fiscal reform in Vietnam. The analysis is performed using a computable general equilibrium (CGE) model of the Vietnamese economy calibrated to late-1990s production and household data. It is...

By international standards, Australia's business tax system combines a high company tax rate of 30 per cent with low taxation of domestic investors through dividend imputation. This prioritizing of domestic investors over foreign investors is at odds with the evidence in this paper that the...

Intertemporal Computable General Equilibrium (CGE) models have the potential to quantify the implications of sectoral and temporal linkages which are often crucial for understanding the effects of economic shocks. However, such models will prove to be of practical use for policy analysis only if...

We consider the optimal factor income taxation in a standard R&D model with technical change represented by an increase in the variety of intermediate goods. Redistributing the tax burden from labor to capital will increase the employment rate in equilibrium. This has opposite effects on two...

The Equity risk-premium and volatility puzzles: Is it possible to have a high-equity premium and a low risk-free rate, and a high volatile stock return, have received a great deal of attention but beyond this, the fundamental issues are the following: What are the economic representations that...

The Equity risk-premium and volatility puzzle - is it possible to have a high equity premium and a low risk-free rate with a plausible risk aversion- have received a great deal of attention but beyond this question, the fundamental issues of that puzzle are the followings: what are the economic...

We present a calibrated general equilibrium model in which collateral constraints substantially amplify and propagate aggregate shocks through their impact on asset prices and capital allocation. Compared to previous studies, this result is more robust and comes with more realistic interest rate...

Time-consistency and optimal diversification (minimum-variance) criteria are popular in the dynamic portfolio construction in practice. This paper is devoted to the exact analytic solution of the time-consistent mean-variance portfolio selection with assets that can be all risky in a...

This paper outlines two potential approaches to incorporating business taxation and allowances into a model of a firm to determine the effect of tax policy changes on the firm's behaviour. Following Auerbach, King and Benge, we first develop a model in which the firm maximises the value of its...