Using transnational terrorism data from 1980 to 2000, this study empirically examines the relationships between frequency of participation in transnational terrorism acts and economic development and education improvement. We find an inverse U-shaped association between the frequency of various nationals acting as perpetrators in transnational terrorism acts and per capita income in their respe...

One typically observes differing trends in the distribution of gross incomes across countries. Where do these inequalities originate from? We consider a simple model where individuals have identical preferences but different abilities, and we investigate the impact on the distribution of gross income of changes in the way abilities are distributed among the individuals. Journal of Economic Lite...

We use a firm-CEO assignment framework to model the market for CEO effective labor. In the model’s equilibrium more talented CEOs match with and supply more effort to larger firms. Taxation of CEO incomes affects the equilibrium pricing of CEO effective labor and, hence, spills over and affects firm profits. Absent the ability to tax profits or a direct concern for firm owners, a standard presc...

This paper analyzes marriage market equilibria when the gains from marriage result from joint consumption of household public goods. Assuming a class of utility functions which guarantee transferable utility within marriage, the paper proves that marriage markets will be characterized by positive assortative mating on income. A tendency for positive assortative mating on wages is also demonstra...

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This paper analyzes the effects of government debt and income taxes on consumption and saving in a world of infinitely lived households having uncertain and heterogeneous incomes. The special structure of the model allows exact aggregation across households despite incomplete markets. The effects of government debt are shown to be substantial, roughly comparable to those resulting from finite h...

Background As middle-income countries become more affluent, economically sophisticated and productive, health expenditure patterns are likely to change. Other socio-demographic and political changes that accompany rapid economic growth are also likely to influence health spending and financial protection.   Methods This study investigates the relationship between growth on per-capita healthcare...