In this paper we ask whether foreclosures are contagious: does a completed foreclosure cause neighboring foreclosure filings? We estimate this relationship using administrative data on home foreclosures and sales in Cook County, IL, and instrument a completed foreclosure using random assignment...

I consider nonlinear taxation of income and bequests with a joy-of-giving bequest motive and explicitly characterize the estate tax rate structure that maximizes social planner's welfare function. The solution trades off correction of externality from giving and discouraging effort of children...