A signalling model is developed to investigate the consequences of corporate income taxation in the presence of adverse selection in the equity market. The model obtains a unique, informationally-constrained efficient equilibrium in which a better quality firm retains more inside-equity, and, as...

This paper develops a simple general equilibrium model with signalling in the presence of adverse selection in the financial market and with occupational choice in the labor market, in order to examine the efficiency cost and incidence of an entrepreneurial profit tax. The model yields an...

South Korea became a net-provider of foreign direct investment in the late 1980s, and is now emerging as a major source of foreign direct investment in ASEAN and China. In general, the economic gains that the host country realizes from foreign direct investment are not a factor that the home...

In identifying the free riders in the voluntary provision of a pure public good, Andreoni and McGuire (1993) simplify Bergstrom, Blume, and Varian's (1986)algorithm by systematizing the selection process of potential contributors. We propose an alternative algorithm in which a concept of...

Business groups play significant economic roles in many countries. Motivated by the observation that the literature on business groups is ever-expanding yet providing ambiguous or conflicting results based on empirical investigations, this paper intends to first develop a theoretical model to...

Using US income data, several functional forms for the Lorenz curve are evaluated. On the basis of the goodness of fit, estimated income shares and Gini coefficients, the form proposed by Kakwani (Electrometrica, 48, 437-46, 1980) is found to be overall superior to the other forms.

A signaling model is developed to investigate the consequences of corporate income taxation in the presence of adverse selection in the equity market. The model obtains a unique, informationally constrained efficient equilibrium in which a better quality firm retains more inside equity, and, as...