The relation between immigration and the economic welfare of residents is analyzed for resource-rich economies (such as Australia) both under competitive conditions and when various distortions are present. Immigration provides efficiency gains for residents under distortion-free competition for...

This paper develops a general-equilibrium model that involves production technology and management service to study the emergence of firms from the perspective of saving transaction costs. Inframarginal analysis is used to formalize Coase and Cheung's theory of the firm and to generalize Yang...

The 'diamond effect' exists when a consumer's utility depends on the exchange value, not just on the intrinsic consumption effects of the good. Yew-Kwang Ng has discussed the optimal tax on a pure 'diamond' good. This paper extends Ng's model to cover mixed diamond goods. It uses three...