The average of periodic growth rates is a downwardly biased estimator of the rate of growth of a country. The higher the variance of the periodical growth rates, the higher the downward bias. The longer the business cycle, the higher the downward bias. In this short paper, we demonstrate these...

The aim of this paper is to point out an inconsistency between the way income tax progressivity is measured and the policy instruments used by the income tax authorities. This inconsistency leads to violation of Feldstein's principle of horizontal equity and causes unintentional reranking among...

We consider decision-making under risk in which random events affect the value of the portfolio multiplicatively, rather than additively. In this case, a higher variability in the rate of return not only is associated with a higher risk, a bad property, but also engenders a higher expected...