Pricing of public utilities has long been discussed after Hotteling (1947), and most preceding arguments have provided a negative answer to the question to attain a Pareto-efficient allocation in an economy with non-convex production possibilities. Contrasting to these, Kamiya (1995) provided an...

A decade ago A. Hatta and J. Haltiwanger (1986) gave a theoretical foundation for the intuitive tax policy recommendation that if two strong substitutes have different ad valorem tax rates, lessening the difference between their tax rates improves consumer's welfare. This note demonstrates that...

Privatization was one of the significant public policy adopted by many countries in the last two decades. Previous and recent studies on its efficacy have focused mostly on the gains at the firm and industry levels. Differing from that approach, this paper attempts to reconsider impacts of the...

Privatization has been one of the significant public policies adopted in the last two decades. Previous studies have focussed on efficacy gains at the firm and industry levels. This paper intends to reconsider the distributive impacts of privatization on the economy as a whole from a theoretical...

The problem of the optimal tax system in the presence of tax-evading behavior is analyzed. This paper provides the conclusion, assuming identical households and proportional income and sales taxes, that the optimum tax system depends critically on the households' attitude toward risk: the...

In an earlier paper the authors clarified the relationship between the stability of long--run equilibrium and the possibility of paradoxical comparative statics in the Lerner--Samuelson two--by--two model of production with factor--market distortions (see "Review of International Economics" 9...