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Persistent link: https://www.econbiz.de/10001363300
A service provider sells to homogenous risk-averse consumers through a two-part tariff. The consumers have uncertain … tastes toward the service. They subscribe the service before the uncertainty resolves. In contrast with the common view that …'s marginal production cost, I show that when consumers have uncertain tastes, the service provider's optimal two-part tariff …
Persistent link: https://www.econbiz.de/10009298686
The basic gains-from-trade theorem makes a stark comparison between completely free trade and complete autarky. This paper is motivated by recent evidence that trade has greatly expanded on the extensive margin (aka fragmentation, offshoring) by adding newly traded goods and services and that...
Persistent link: https://www.econbiz.de/10012462725
Observed fiscal policy varies greatly across time and countries. How can we explain this variation across time and countries? This paper surveys the recent literature that has tried to answer this question. We adopt a unified approach in portraying public policy as the equilibrium outcome of an...
Persistent link: https://www.econbiz.de/10012471701
U.S. policy changes and more optimistic fiscal forecasts have significantly improved the long-term fiscal prospects of the country. Nevertheless, these prospects remain dismal. Unless U.S. fiscal policy changes by a lot and very soon, our descendants will face rates of lifetime net taxation that...
Persistent link: https://www.econbiz.de/10012472215
The fiscal gains from, and hence the political incentives to, an increase in inflation rate of ten percentage points may be substantial: with Swedish data from 1994, these gains would have been an annual real flow of 3-4 percent of GDP, or a capitalized value of nearly 100 percent of GDP. They...
Persistent link: https://www.econbiz.de/10012473062
Does taxation for public goods generally involve a distortionary cost? Are Pigouvian taxes desirable because they raise revenue without having to resort to distortionary taxes? Should decisions concerning public goods or Pigouvian taxes depend on whether their incidence is regressive? The answer...
Persistent link: https://www.econbiz.de/10012474374
Although tax policy in most historical cases has been barely distinguishable from legalized theft, why have tax and spending policies in a few unusually fortunate communities, such as some of the modern democracies, apparently been, if not welfare maximizing, at least relatively benevolent? We...
Persistent link: https://www.econbiz.de/10012476368
Many of the most pernicious economic institutions and policies create entry barriers or manipulate factor prices to transfer resources from entrepreneurs and workers to groups that hold political power. These inefficiencies partly result from the fact that direct and efficient fiscal instruments...
Persistent link: https://www.econbiz.de/10012462959
to make public finance field experiments more useful …
Persistent link: https://www.econbiz.de/10012465725