The “decoupled” liability system awards the plaintiff an amount that differs from what the defendant pays. The previous approach to the optimal decoupling design is based on the assumption of complete information, which results in an optimal liability for the defendant “as much as he can...

In this paper we propose a new class of tests for the martingale difference hypothesis based on the moment conditions derived by Bierens (1982). In contrast with the existing consistent tests, the proposed test has a standard limiting distribution and is easy to implement. Comparing with the...

In the last few years, the three major cities in Taiwan have been experimenting with two different demand-side management approaches to reduce the waste generated by households and to promote the recycling of recyclables. Thus, there are three different kinds of approaches of waste management...

The purpose of this paper is to test whether there is an intergenerational transmission of gender preferences in educational resource allocation among children. The unique data set of Taiwan’s Panel Study of Family Dynamics project provides us a rich 3-generation education information and...

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This paper uses an otherwise standard, competitive growth model without externality and distortions to establish multiple balanced growth paths. Our model is based on the standard one-sector, endogenous growth model of Romer (1986), with a twist that households’ preference depends partly upon...

By setting up a simple Romer-type (1989) endogenous growth model embodying a political trade union (rather than the traditional economic labor union), this paper explores the effects of unionization on unemployment, growth and welfare by highlighting the essence of internal conflict within the...

A thorough analysis of sustainable development requires a better understanding of how economic and ecological systems interact over the long run. This paper provides an integrated model to analyze interactions between economic and ecological systems. The linkages between these two systems are...

The paper examines the interactions between economic integration and population agglomeration in a middle product economy displaying neoclassical growth. There are two vertically integrated economies. Each consists of a large number of final good competitive firms operating plants in both...

This paper develops a new mechanism for local indeterminacy in a constant-return, two-sector, human capital enhanced growth model, with productive public spending financed by the income taxation in the goods sector. The use of productive public goods services is subject to an external congestion...