We present theoretical and empirical results on consumption during an enmployment spell.

As is amply documented, there appears to be a large discrepancy between the marginal propensity to purchace food ou of cash income and that out of food stamps. In this paper, we have examined both the formal and empirical bases of the claim that marginal welfare stigma explains this puzzling...

This paper uses numerical optimisation to uncover optimal policy reaction functions for a stylised small economy model under a number of targeting regimes. These policy reaction functions are presented as feedback relationships making evident the dominant state variables in the rule.

This paper examines the impact of export orientation, import competition, foreign ownership and the rate of capital accumulation on the relative demand for skilled and unskilled labor in pre-crisis Indonesia.

Benge (1997) examined the effects of the Australian full imputation company tax system and capital gains tax provisions on dividend policy and financial policy for an optimizing firm. However, there has been no attempt to quantify the financial policy biases that were identified in the earlier...

Receipt of unemployment insurance by immigrant men and social assistance by immigrant families are analysed using thirteen surveys from Canada. Estimates from a cohort fixed effects model are found to be sensitive to the choice of survey years. This is due to the mis-specification of the fixed...

The authors construct a model in which a first mover decides on its location before it knows the identity of the second mover; joint location results in a negative externality. Contracts are inherently incomplete since the first mover's initial decision cannot be specified. The authors analyze...

Using a simple dynamic, closed economy macroeconomic model, this paper compares optimal commitment rules and optimal discretionary rules with the Taylor rule and the Henderson and McKibbin rule. For some parameter values discretionary policy is found to lead to instability. This paper also...

This paper adapts a more general yet standard global model to investigate international effects of wage regulation and of the Asian emergence. The Davis result that European unemployment raises the wage in the US is supported, though the generalisations in our model greatly weaken it. By...

This paper highlights the arbitrage by firms in Miller's (1977) equilibrium when consumers face (short) selling constraints to restrict tax arbitrage. In this competitive equilibrium firms create risky tax-preferred securities that divide investors into strict tax clienteles; any changes in...