In this paper, the authors suggest and analyze an aggregate demand curve with a positively sloped section that derives from negative consumption externalities between groups. Their analysis suggests a new interpretation of the demand pattern for some Veblen-type goods. Copyright 1996 by The...

The legal owner of a stolen good generally puts a higher value on that good than does the thief. There are therefore potential gains from trade between a legal owner and a successful thief. However, by trading with a thief, the legal owner is encouraging theft for 'ransom'. Should then...

We study the joint role of altruism and impatience, and the impact of evolution in the formation of long-term time preferences and in the determination of optimal consumption and optimal bequests. We show how the consumption paths of dynasties relate to altruism and to impatience, and we reason...