This paper uses a new data set to study household responses to adverse income shocks in seven Latin American countries. The results show (i) that households respond to income shocks mainly by increasing their labor force participation, selling assets, and disinvesting in human capital, (ii) that poor households are most likely to be affected by adverse income shocks, and (iii) that lower-middle...

abstract t he return of capital is fundamental to the intertemporal allocation of resources by changing the consumption behavior and capital accumulation over time. taxation on return of capital increases the marginal product of capital, meaning that capital stock is lower than when capital is not taxed, which results decreased growth and welfare in steady state. this paper studies the impact o...

health can affects human abilities, functions and even his life quality, and hence has important role in determination of human capital through production processes. the aim of this study is to examine the effect of income inequality on selected health indices in iran during 1976-2007. in this study an attempt has been made to analyze the relationship between income inequality and the both of l...

The free movement of capital across borders has created, and will certainly continue to create, enormous economic benefits. Capital flows afford developing countries and other regions the means to exploit promising investment opportunities, while providing savers around the globe the means both to earn higher returns and to reduce risk through international portfolio diversification. Access to ...

This paper studies optimal Ramsey taxation when risk sharing in private insurance markets is imperfect due to limited enforcement. In a limited commitment economy, there are externalities associated with capital and labor because individuals do not take into account that their labor and saving decisions affect aggregate labor and capital supply and wages, and thus the value of autarky. Therefor...

Social capital refers to trust, norms, and social networks. One of the most important features of social capital is its claimed capacity of promoting economic well-being. Theorists have assumed that any such effects vary according to the nature of different types of social capital. Using longitudinal data from a nationally representative dataset, this study investigates the differentiated effec...