Whether the minimum wage is an effective redistributive policy is still controversial. I investigate this issue from a new perspective by focusing on the effect of minimum wage hikes on housing rents. It is informative for two reasons. First, if minimum wage hikes increase housing rents, some of...

We investigate a free-entry market in which incumbents engage in lobbying for changing regulations, which affect the cost of all firms equally. We find that incumbents have incentive to weaken or strengthen regulations, depending on the demand condition.

We investigate public infrastructure investment that reduces production costs in oligopoly markets. The government decides on its public investment based on cost/benefit analysis that estimates the benefit as a reduction in production costs. In the short run, equilibrium investment falls short...

We investigate the long-run effect of energy conservation regulation, which forces firms to raise energy-saving investment above the cost-minimising level (i.e. the business-as-usual level). If Pigovian tax is imposed, additional regulation always harms social welfare under perfect competition....