We examine how group-specific differences in reservation wage, arising due to asymmetries in social entitlements, impact distribution via the joint determination of class conflict between workers and employers, and ‘ethnic’ conflict among workers. We model a two-dimensional contest, where...

As is amply documented, there appears to be a large discrepancy between the marginal propensity to purchace food ou of cash income and that out of food stamps. In this paper, we have examined both the formal and empirical bases of the claim that marginal welfare stigma explains this puzzling...

There exist large variations in juvenile sex ratios across districts and social groups in India. Economic and cultural factors have been advanced as contending explanations for these variations. We propose a household optimization model that integrates cultural explanations with economic ones....

As is amply documented, there appears to be a large discrepancy between the marginal propensity to purchase food out of cash income and that out of food stamps. In this paper, we have examined both the formal and empirical bases of the claim that marginal welfare stigma explains this puzzling...

There exist large variations in juvenile sex ratios across districts and social groups in India. Economic and cultural factors have been advanced as contending explanations for these variations. We propose a household optimization model that integrates cultural explanations with economic ones....

Wealthy individuals often voluntarily provide public goods that the poor also consume. Such philanthropy is perceived as legitimizing one’s wealth. Governments routinely exempt the rich from taxation on grounds of their charitable expenditure. We examine the normative logic of this exemption....

This paper analyzes the problem of deriving predictions, regarding supply behavior of a competitive firm, from prior consistency postulates about input-output choices made by such a firm. It extends the literature by introducing a consistency postulate for firm choice, which is weaker than...

We examine the case for maintaining welfare and income redistribution programs even when their adverse general equilibrium effects reduce total earnings of poor households. Using a Cournot model of intra-household decision-making, we show that even if welfare cutbacks generate large increases in...