Investors scarcely use mean-variance optimization when deciding on their actual portfolios. One of the main reasons they give is that efficient portfolios are systematically concentrated in a few assets. This article shows that such an allocation is achieved when portfolio risk and return are...

In a typical tactical asset allocation set up a manager receives compensation for his excess of return given a tracking error target. Critics of this framework cite its lack of control over the total portfolio risk. Current approaches recommend what we call a mixed allocation, derived from...

This paper proposes the substitution of the current income tax system for a simplified consumption tax (SCT),consisting of a cash-flow tax (CST) with a rate of 26%, and a tax on wages with a maximum rate also of 26%. Preliminary estimates indicate that these taxes would maintain tax revenues...

This paper surveys the literature on the effects of taxation on welfare. These effects depend on the tax burden, the use of tax revenues, and the way in which taxes are collected. The paper focuses on the costs associated to the way tax collection is set up. The paper also briefly reviews the...