In a neoclassical growth model with public consumption, we show the following Pareto optimal tax rules. The government should tax leisure and private consumption at the same rate, and subsidize net investment at the same rate it taxes net capital income. Also, it should tax capital income more...

This comprehensive Research Review pinpoints seminal and classic articles that are key in the development of economic analysis of the distribution of wealth. Topics discussed include the measurement of the distribution of wealth and analyses the time trends in wealth concentration and the...

After the 11 September tragedy, 20% of the scheduled US airline flights were cancelled and the passenger load factor was down to 56% from 66.6% a year ago. Was the high death toll or the nature of the attack itself responsible for this dramatic decline? Using the US data, we find that the demand...