Researchers' incentives to publish in top-tier journals are examined by a theoretical model. Using incentives to deliver optimal quality of research as a benchmark, the model concludes that the former incentives result in misallocation of resources and welfare loss. The main reasons behind it...

Most analyses of optimal income taxation make restrictive technical assumptions on preferences (such as single-crossing) and only derive properties of welfare-maximizing tax schedules. Here, for an economy with any finite numbers of groups and commodities, Pareto efficient tax structures are...