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Marriage as a Rat Race: Noisy Pre-Marital Investments with Assortative Matching

Bhaskar, Venkataraman; Hopkins, Ed - C.E.P.R. Discussion Papers - 2011

We study the incentives of parents to invest in their children when these investments improve their marriage prospects, in a frictionless marriage market with non-transferable utility. Stochastic returns to investment eliminate the multiplicity of equilibria that plagues models with...

Persistent link: https://www.econbiz.de/10009246608

Happiness Inequality in the United States

Stevenson, Betsey; Wolfers, Justin - C.E.P.R. Discussion Papers - 2008

This paper examines how the level and dispersion of self-reported happiness has evolved over the period 1972 …-2006. While there has been no increase in aggregate happiness, inequality in happiness has fallen substantially since the 1970s …. There have been large changes in the level of happiness across groups: Two-thirds of the black-white happiness gap has been …

Persistent link: https://www.econbiz.de/10005136431

Homo Reciprocans: Survey Evidence on Prevalence, Behaviour and Success

Dohmen, Thomas J; Falk, Armin; Huffman, David; Sunde, Uwe - C.E.P.R. Discussion Papers - 2006

Experimental evidence has convincingly shown the existence of reciprocal inclinations, i.e., a tendency for people to respond in-kind to hostile or kind actions. Little is known, however, about: (i) the prevalence of reciprocity in the population, (ii) individual determinants of reciprocity,...

Persistent link: https://www.econbiz.de/10005114269

Redistributive Politics with Distortionary Taxation

Crutzen, Benoît SY; Sahuguet, Nicolas - C.E.P.R. Discussion Papers - 2006

We extend the discussion of redistributive politics across electoral systems to allow for taxation to be distortionary. We allow politicians to choose any tax rate between zero and unity and then redistribute the money collected. We build on the model put forward by Myerson (1993) and Lizzeri...

Persistent link: https://www.econbiz.de/10005504298

Optimal Taxation and Monopsonistic Labour Market: Does Monopsony Justify the Minimum Wage?

Cahuc, Pierre; Laroque, Guy - C.E.P.R. Discussion Papers - 2007

We analyze optimal taxation in an economy with monopsonistic labour markets. The individuals, whose only decisions are whether to work, or not, have heterogeneous productivities and opportunity costs of work. Given its preferences for redistribution, the government, which does not observe the...

Persistent link: https://www.econbiz.de/10005504333

Liability-Creating Versus Non-Liability-Creating Fiscal Stabilization Policies: Ricardian Equivalence, Fiscal Stabilization and EMU

Bayoumi, Tamim; Masson, Paul R - C.E.P.R. Discussion Papers - 1998

This paper looks at theoretical and empirical issues associated with the operation of fiscal stabilizers within an economy. It argues that such stabilizers operate most effectively at a national, rather than local, level. As differing cycles across regions tend to offset each other for the...

Persistent link: https://www.econbiz.de/10005504538

Mortality Risks, Education and Child Labour

Baland, Jean-Marie; Estevan, Fernanda - C.E.P.R. Discussion Papers - 2006

In this paper, we investigate the role of young adult mortality on child labour and educational decisions. We argue that mortality risks are a major source of risks in returns to education in developing countries. We show that, in the absence of appropriate insurance mechanisms, the level of...

Persistent link: https://www.econbiz.de/10005498071

Optimal Income Taxation: Mirrlees Meets Ramsey

Heathcote, Jonathan; Tsujiyama, Hitoshi - C.E.P.R. Discussion Papers - 2015

What structure of income taxation maximizes the social benefits of redistribution while minimizing the social harm associated with distorting the allocation of labor input? Many authors have advocated scrapping the current tax system, which redistributes primarily via marginal tax rates that...

Persistent link: https://www.econbiz.de/10011165649

Childcare Subsidies and Household Labor Supply

Guner, Nezih; Kaygusuz, Remzi; Ventura, Gustavo - C.E.P.R. Discussion Papers - 2013

What would be the aggregate effects of adopting a more generous and universal childcare subsidy program in the U.S.? We answer this question in a life-cycle equilibrium model with heterogeneous married and single households with three key features: (i) joint labor-supply of married households...

Persistent link: https://www.econbiz.de/10011083325

Consumption, Income Changes and Heterogeneity: Evidence from Two Fiscal Stimulus Programmes

Misra, Kanishka; Surico, Paolo - C.E.P.R. Discussion Papers - 2013

Almost half of American families did not adjust their consumption following receipt of the 2001 or 2008 tax rebates. Another 20%, with low income and more likely to rent, spent a small but significant amount. Households with large spending propensity held high mortgage debt. The heterogeneity is...

Persistent link: https://www.econbiz.de/10011083341