This paper presents a simple but quite general framework for analyzing the impact of informational externalities. By identifying the traditional pecuniary effect of these externalities which nets out,the paper greatly simplifies the problem of determining when tax interventions can be Pareto...

The analysis of the effects ofcapital gains taxation requires a careful modelling both of the details of the tax code and the imperfections in the capital market. Under the standard assumptions concerning perfect capital marketsand under the standard idealizations of the tax code, there are...

This paper formulates a simple model of "perfect community competition." It is shown that (1) the equilibrium is Pareto optimal; (2) communities will, in general, be heterogeneous; not all individuals will have the same tastes; but (3) all individuals of a given skill within the community will...

Consumers are imperfectly informed. They do not know the characteristics of all the products in the market or the prices at which they are available at all sellers. There is no Walrasian auction ensuring that a particular commodity is sold at the same price by all stores. There is no Government...

This chapter presents a discussion on the economic organization, information, and development. The chapter sets out the basic tenets of the theory and contrasts these with some alternative hypotheses. The chapter also discusses the theory of rural organization that attempts to describe the...

For more than a hundred years, economists have attempted to show that progressive taxation can be justified on more fundamental principles. Among the earliest of such attempts was that of Edgeworth (1868, 1897), who tried to show that utilitarianism (combined with two other assumptions) implied...

As we understand it, the D.C. Circuit did not allow the EPA to consider the costs of complying with ozone and PM NAAQS. As we further understand it, this legal ruling can be overturned only by this Court. As economists, we believe that the D.C. Circuit's ruling not allowing the EPA to consider...

Government plays a necessary role in keeping markets working efficiently and fairly. Market failures – situations in which the invisible hand does not make everyone better off – are among the oldest and most universally accepted justifications for regulation. However, incidents of market...

In this paper we present a model with heterogeneous and interacting firms and banks, which is solved analytically. Methodologically, the economy is modelled as a network, a theoretical structure which is particularly suitable to represent the interactions among different agents. In this credit...

On 25-26 June 2009, the BIS held its Eighth Annual Conference on "Financial System and Macroeconomic Resilience: Revisited" in Basel, Switzerland. The event brought together senior representatives of central banks and academic institutions who exchanged views on this topic. This volume contains...