We revisit, in a general equilibrium framework, the canonical issue of optimal public debt management when taxes are distortionary. Specifically, we modify the standard formulation of the problem by making an obvious observation and recognizing that, ultimately, any tax policy impacts the entire...

In this paper we describe an elementary mechanism that makes any level of public debt sustainable. In particular, we show that debt relative to the GDP can grow indefinitely without bounds and the public will always find it privately optimal to acquire additional debt. Consequently, we note that...

We show that rational profit maximizing firms can find it optimal to wage discriminate against females even though females and males are identical in all respects. Specifically, we argue that a pay gap can emerge naturally as discrimination against females, in the first place, can endogenously...

We focus exclusively on preferences characterized by the absence of income effects. We argue that the standard approach of Mirrlees to optimal taxation is faulty as it fails to identify the true optimum of the optimal taxation problem. Specifically, we present an elementary, feasible, and...