This paper examines the location choice of families when education is available through local public schools and private schools. According to the theoretical model, families who use public schools sort into communities that offer their desired education quality. Families who choose private...

There are two basic theoretical views of how advertising affects competition. One school of thought suggests that advertising decreases competition. Kaldor (1950) argued that through economies of scale in advertising, advertising increases market concentration. Also, Bain (1956) suggested that...

The lack of a satisfactory theory of personal income distribution is a problem that economists have pondered for most of the twentieth century. In 1912 Irving Fisher wrote:

Two‐person zero‐sum game theory has long been a popular topic of research in business and economics. The purpose of this paper is to discuss how to convert a two‐person zero‐sum game into a linear programming problem and to present a computer simulation model for solving large bilateral...

Production‐cost duality was first introduced by Ronald Shephard (1953) in his seminal study, Cost and Production Functions. The application of duality to production and cost was extended by Uzawa (1962, 1964). However, not until the 1970s did the Shephard‐Uzawa duality analysis achieve its...

Gross state product for the eight BEA regions are tested for stationarity and for cointegration with national gross domestic product. All eight regional GSP and GDP are characterized by a random walk. None of the eight regional GSP are cointegrated with GDP. Between the regions, the results are...

Time is an important determinant of factor demand and supply elasticities in producer theory. The typical textbook distinction between the short‐run and the long‐run focuses upon the ability of the decision‐maker to adjust fixed factors. Indeed, the length of the firm's planning horizon...

Some economists who normally prefer to rely on free market solutions to economic problems often consider money a special good that requires government control to prevent overissue. But free banking advocates take the position that the market can control the supply of money without any government...

In this paper, the neoclassical theory of labour supply and a neo‐Keynesian theory of labour supply are investigated and the equilibrium prediction of the two theories are tested using cointegration methods. The Granger and Engle two step procedure is applied to quarterly Canadian labour...

This article examines the macroeconomic impact of a consumption‐based value‐added tax (VAT) using simulations of a large‐scale model. The VAT is imposed as a structural reform of the tax code rather than as a revenue‐raising device, i.e., the revenues from the VAT are offset by...