This paper estimates the demand for cigarettes using panel data – 42 states and Washington, D.C. – from 1961 to 2002. We first employ the panel unit root test before estimating the demand structure. We have found that (i) the price and income elasticities are approximately –0.41 and 0.06,...

In this paper we present a logical extension of the Laffer model that casts doubt on the above criticisms of supply-side economics. In particular, we show that (1) because of “dual taxations,†Reagan’s tax rate cuts will unambiguously lead to immediate (short-term) increases in...

In 1972 Congress established the Federal Water Pollution Control Act in which the Environmental Protection Agency was given responsibility to “restore and maintain the chemical, physical, and biological integrity of the nation’s waters.’’ Two national goals of...

Growth of the governmental regulation of economic activities since the depression is normally associated with industrial produc- tion.’ Indeed, pollution controls, work-safety requirements, and antitrust actions have recently been cited as contributing to declin- ing productivity and...

Since October of 1973 many Americans of various political persua- sions have called for a clear and coherent energy policy. Those on the left tend to believe that Americans, lacking the foresight or self- discipline required to make appropriate adjustments to energy shortages, must have their...

Professor Laffer’s paper’ leads me to ask four questions, which I shall address in turn: 1, Is the Laffer curve an accurate depiction of economic reality? 2. Are we in a prohibitive region of the Laffer curve, that is, a region in which a tax rate cut would increase tax revenues?...

Conflict over the use and management of America’s forest lands and resources intensified during the 1970s, with debates over the use of the undeveloped lands inventoried by the Forest Service, the divi- sion of lands in Alaska, the establishment and expansion of certain national parks...