Indices which represent weighted averages of the prices of "basic" commodities are often used in analyzing inflationary pressures. Because basic commodities are usually purchased for further processing, changes in their prices will affect producers' costs, and these changes may eventually be...

Partial equilibrium models suggest that when uncertainty increases, agents increase savings and at the same time reduce investment in irreversible goods. This paper characterizes this problem in general equilibrium with technology shocks, additive output shocks and shocks to the marginal...

The paper analyzes the effects on consumption from changes in the riskiness of taxes. It starts by reinterpreting the Sandmo [1970] paper on general capital income risk to the case of risky capital taxation. In his framework the concept of a mean preserving spread (MPS) is used for the risk...