Excessive drinking creates costs to public services which the government can recoup through alcohol taxes, thereby making drinkers internalise the costs. However, in Britain, the alcohol duty regime is excessive and illogical. Not only do revenues from alcohol duty far exceed the costs to public...

Economists' productivity, as measured by publication in leading journals, declines very sharply with age. Additional evidence shows that this is a rational response to economic incentives and/or changing physical or mental abilities: There is no difference by age in the probability that an...

The solution to a linear model in which supply and/or demand depends on rational expectations of future prices can involve three parts, which we denote as the fundamental component, the deterministic bubble component, and the stochastic bubble component. This paper explores the properties of...

Examining rationality of expenditures and analyzing welfare changes are interrelated because welfare change analysis is predicated on “rational” (i.e., expenditure-minimizing) responses to price and income changes. This study examined Philippine family demands for (1) electricity, (2) gas...

In this paper I provide some evidence on the question of whether the behavior of unemployed young blacks, whose reservation wages are relatively high and whose jobless spells are very lengthy, reflect rational maximizing choices. To do this, I use a simple income-maximizing job search model to...

There are a couple of well-known unsatisfactory properties in the notion of effective demand defined by Benassy and one by Dreze. This is why recent authors in disequilibrium analysis study the stochastic rationing mechanism. Douglas Gale proved the existence of the equilibrium with stochastic...

In this paper we develop a general equilibrium model of exchange rates where expectations of future variables directly affect the current exchange rate through an 'asset-market' term. This term, which results from the assumptions of incomplete asset markets and segmented product markets, does...

This paper analyzes panic buying of storable consumer goods, using a novel macroeconomic model of consumers' inventory adjustment featuring search frictions in shopping. Even if consumers are fully rational, an anticipated temporary increase in consumer shopping costs (caused by a disaster...

This paper tries to formalize psychological insights with a game-theory approach and offer new thinking about rationality, emotions and heuristics. Within a new theory of individual subjectivity, I propose a model of Inner Games to embody individual’s beliefs about relationships in the form of...

The COVID-19 pandemic and the unprecedented natural disasters of 2020 remind us of the importance of emergency preparedness. This Article contributes to our legal and ethical readiness by examining state “Crisis Standards of Care,” which are the standards that determine how medical resources...