Walters applied a demand and supply model to collect toll for easing congestion. This paper proves that his model is a lame duck, one without a supply function. It then works out a wholesome traffic and congestion model, to offer some alternative methods to solve congestion. This paper also...

User toll means that drivers have to pay money to cover road cost, just like eaters pay money to cover food cost. This paper first shows that the U-shaped cost theory supports such toll, but the corresponding functions are neither demand nor supply. Then, it separates the U-shaped cost theory...

This paper proposes a new production function to offer a Deus Ex Machina to save Becker's labor theory. It proves that training does raise labor's efficiency and does not need any external cost. Moreover, it proves that training is increasing returns to scale, without using any endogenous capital

This paper disproves all the Modigliani and Miller (1958) theorems. Debt or equity financing depends on the interest and discount rate difference. Investment yield does not necessarily increases with the debt/equity ratio. Finally, cost of capital actually rises with debt

This paper has two purposes. First, it proves that printing money is more detrimental than taxation. Second, it proves that when money is one of the variables in household consumption decision, the resulting budget function is a constant, and the budget line is called singular. Singular...

This paper disproves that the second proposition by Modigliani and Miller (1958), which states that the yield of a firm is an increasing function of the debt/equity ratio. If that proposition were valid, all firms should borrow unlimitedly. This paper points out how M&M manipulated the...

This paper disproves the implication by Modigliani and Miller (1958) that taxation with interest deductibility is an advantage. This paper shows that government and bank are two robbers. Firms and consumers should avoid both of them. This paper advocates that firms should borrow less with there...

This paper works out a feasible measure for judging profit tax. It is the long-run profit rate that matters, not just long-run profit, not just short-run profit. Long-run profit helps a firm determine to enter a business or not, but long-run profit rate indicates which country the firm should...

This paper revamps Harberger's primitive tax theory and obtains completely different results. When his perfectly inelastic supply is corrected, his total net capital income is reduced. The existence of another industry forces the firm of the taxed industry, not the capital owners, to bear the...

Many countries found puzzling when devaluation cannot improve their trade account. This paper proves that the theory they rely on is wrong. Depreciation is always harmful, for it reduces imports, exports, and trade profit. The Marshall-Lerner condition, if any, is always equal to one, and has no...