We study how the allocation of government expenditures between two major outlays -- education and pay-as-you-go social security -- affects income distribution in an economy with heterogeneous agents.

We use computational experiments to study the impact of means-tested education vouchers on the level and distribution of educational expenditures.

A major empirical interest in growth studies is whether a permanent change in economic fundamentals affects the long-run growth rate. However, a direct time series analysis of this hypothesis may not always be feasible because the permanence of many such changes is rather questionable. This...

In this paper we study whether majority voting equilibria exist when preferences over public policies are not single-peaked. The government levies a proportional income tax. Tax revennues is used to finance a uniform lump-sum transfer and public education. Individuals vote on the composition of...

In this paper we have developed a general equilibrium model in which the social welfare effects of the two major govenment health care programs, Medicare and Medicaid, and the special tax treatment of employer provided medical benefits can be simultaneously evaluated.

We develop a model of an overlapping generations economy characterized by provate pensions where risk averse agents face both longetivity and investment risks.

In this paper we show how the assumption that higher moments do not depend on the regressors can be exploited in a GMM framework, and we provide very simple estimators that are equivalent to GMM estimators. These simple estimators can be calculated by linear regressions which have been augmented...

Consider a market in which firms compete to develop a new product. While most work focuses on a single firm successfully developing the new product, the emphasis here is on possibly multiple firms devloping the new product. Thus, a firm has uncertainty about how many competitors it will face as...

A profit-maximizing monopolist licenses a cost-reducing innovation to downstream firms that compete strategically. Katz and Shapiro (1986) find the seemingly obvious result that "the [monopolist's] incentive to disseminate the innovation typically are too low." Instead, the author finds that the...

One potentially important form of sex discrimination in labor markets is a wage gap between women and men that is larger than the gap between their marginal products.