Given its significance in practice, the piecewise linear tax system seems to have received disproportionately little attention in the literature on optimal income taxation. This paper offers a simple and transparent analysis of its main characteristics

We show that, even with flexible domestic wages, international outsourcing may worsen the welfare of the home country and reduce the profits of all firms. If wages are rigid, outsourcing is welfare-improving if and only if the sum of the quot;trade creationquot; effect and the quot;exploitation...

Presents a collection of research findings on topical issues in international trade theory and policy. This work deals with trade liberalization and outsourcing. It examines trading clubs and preferential trading agreements. It features six chapters on the various aspects of trade and aid.

Key Features:Unique in its rich and comprehensive coverage of fields of applicationsBrings readers to the forefront of researchAn excellent complement to textbooks that cover differential games and dynamic optimization.

This paper examines the relationship between countries' bilateral trade with the United States that is not due to gravity (non-gravity trade) and the distribution of income within countries. In countries where only a small share of the population are educated, an increase in non-gravity trade is...

We model the emulation between two athletes whose goals are fixed by their coaches. The coaches in turn engage in a game of goal setting. We analyze the equilibriums of that game. For some range of parameter values, there are only mixed equilibriums, where one coach randomizes his goals while...