There is substantial evidence that home-ownership changes behavior and creates local spillovers. But theoretical research on the decision to own or rent a home has ignored such spillovers and does not confront the issue of the determination of the quality and composition of neighborhoods. This...

A Strand of recent literature shows that a reform of import tariff (export tax) and consumption tax (production tax) that keeps consumer (producer) price unchanged cnhances welfare and increases revenue under plausible conditions. We demonstrate that the results derived so far critically depend...