We analyze four methods to measure unexplained gaps in mean outcomes: three decompositions based on the seminal work of Oaxaca (1973) and Blinder (1973) and an approach involving a seemingly naïve regression that includes a group indicator variable. Our analysis yields two principal findings....

This article models the allocation of contributions by a Political Action Committee (PAC) among a group of candidates running in different races, assuming utility maximizing behavior on the part of the PAC and the candidates. Under various assumptions about objectives, contributions are found to...

When comparing marginal costs and benefits of a public project, most economists think in terms of adding together the marginal costs of production plus marginal costs of additional distortionary taxation. This paper clarifies how the "revenue effect" offsets the "distortionary effect." For...