As part of a comprehensive review of AustraliaÂ’s tax system, the taxes on alcoholic beverages recently came under scrutiny. In its initial response to the review in May 2010, the government chose to not change those taxes, even though the review recommended the wine tax switch from an ad...

Two dynamic general equilibrium economies compete in explaining the United States' interwar business cycles. Despite the demand driven contender's slight advantages, the results remain too close to call a clear winner.

The purpose of this paper is to evaluate whether adding labour market frictions improves the basic New Keynesian model's ability to generate greater inflation persistence and plausible labour market dynamics. This paper builds and compares two sticky price models, one of which is augmented by an...

This paper considers a nonparametric time series regression model with a nonstationary regressor. We construct a nonparametric test for testing whether the regression is of a known parametric form indexed by a vector of unknown parameters. We establish the asymptotic distribution of the proposed...

The theoretical analysis of Japan's liquidity trap is developed by Krugman (1998a,b,c; 1999) in terms of both an ''intertemporal maximization'' framework and an ''absolutely conventional open economy IS-LM model''. In this note I examine the latter version of the story and argue that Krugman's...

Abortion may prevent the birth of ''unwanted'' children, who would have relatively small investments in human capital and a higher probability of crime. On the other hand, some research suggests that legalizing abortion increases out-of-wedlock births and single parent families, which implies...

Household survey data from the Kyrgyz Republic are used to analyse changes in the determinants of household expenditure during the transition from central planning. Quantile regression is applied to a human capital model with consumption related to the household head's education and controlled...

E¤orts to simulate turbulence in the financial markets include experiments with the dynamic logistic parabola. Visual investigation of the logistic process show the various stability regimes for a range of the real growth parameter. Visualizations for the initial 20 observations provide clear...

How does the presence of corruption affect the optimal mix between consumption and income taxation? In this paper we examine this issue using a simple neoclassical growth model, with a self-seeking and corrupt public sector. We find that the optimal tax mix in a corrupt economy is one that...