We incorporate policymaker costs of supplying rents and variable intensities of competition among rent seekers into the standard rent-seeking game. By incorporating these aspects, the game has greater verisimilitude to the lobbying process. The first aspect captures the fact that in rent-seeking...

The authors examine two questions that are relevant to current policy issues: (1) is there a positive response of aggregate demand to advertising? (2) what is the reaction of consumers to government health warnings and media policy? The results support the hypothesis that advertising increases...

The authors analyze the general equilibrium effects of reducing capital gains taxes in a computable general equilibrium (CGE) model. The CGE approach allows the examination of the impact of the tax reduction on the various sectors of the economy. Of special interest is the distributive effects...

V. O. Key's reward-punishment model has long dominated scholarly thinking about the political economy of party support. The model's popularity persists despite anomalous empirical evidence and challenges by issue-priority theorists who criticize the model for ignoring differences in the policy...

Many economics principles textbooks mention that stocks and bonds are substitutes, and some textbook authors state that stocks are riskier than bonds. Most people seem to believe this idea. Whenever the stock market is volatile, money flows from the stock market into the safe haven of the bond...