For at least fifty years economists have argued that vertically-aggregated marginal willingness to pay, when set equal to marginal provision cost, will result in optimal public good provision levels. This methodological approach would be expected to yield an exact analog, in terms of optimal...

The observed two-part tariff price structure (consisting of a lump-sum price and a linear marginal price) for drinking water in Germany does not reflect the cost structure reported in the literature. Recovering marginal costs from a sample of 251 German counties, we see that there are positive...

More cycling tackles morbidity, obesity and mental health issues and that means a reduced burden on the public health system. The benefits compound as cycling networks are completed, made denser, or separated from traffic. We’ve known about the health benefits of cycling for a long time, but...

Growing number of studies accentuated enigmas in PDS system, many of them provided evidences based on National Sample Survey (NSS) and other official statistics, more particularly by major states. Many of them also highlighted theoretical and operational difficulties in existing policy...

This paper highlights the importance of the information efficiency in the banking sector as a way to ensure his correct operation as financial intermediary and the correct functioning of the economy in general. The problems of information in the banks distort their relation with the financing...

The general idea of this work is to analyse how a banking concentration process can generate information asymmetries causing credit rationing in specific sectors of the economy. To perform this analysis will be used a real and not a theoretical framework as it was the bank concentration process...

Half of the jobs in the U.S. feature pay-for-performance. We study nonlinear income taxation in a model where such labor contracts arise as a result of moral hazard frictions within firms. We derive novel formulas for the incidence of arbitrarily nonlinear reforms of a given tax code on both...

This paper studies the efficiency of competitive equilibria in environments with a moral hazard problem and unobserved states, both with retrading in ex post spot markets. The interaction between private information problems and the possibility of retrade creates an externality, unless...

Since the probability of finding a job is affected not only by individual effort but also by the aggregate state of the economy, designing unemployment insurance payments conditional on the business cycle could be valuable. This paper answers a fundamental question related to this issue: How...

The work of Friedrich Von Hayek contains several testable predictions about the nature of market processes. Vernon Smith termed the most important one the ‘Hayek hypothesis’: equilibrium prices and the gains from trade can be achieved in the presence of diffuse, decentralized information,...