We analyze a macroeconomic model of monopolistic competition in which consumers earn unequal incomes. When preferences are non-homothetic, the distribution of income affects equilibrium mark-ups and equilibrium product diversity. Inequality, Market Power, and Product Diversity Reto Foellmi, University of Zurich Josef Zweimüller, University of Zurich, CESifo, IZA, and CEPR∗†

OBJECTIVE This paper aims to contrast the demographic correlates of leisure and transportation walking. METHODS Using data from the 2005 National Health Interview Survey (n=31,482), this paper reports on the prevalence of transportation walking and leisure walking for U.S. adults and examines the variation in prevalence across different socio-demographic groups. The prevalence of transportati...

according to endogenous tariff hypothesis, tariff is endogenously determined by the set of political economy factors. using the co- integrated var approach and in the framework of the hypothesis, the present study examined the determinants of tariff protection in iran over the period 1971-2010. based on the results, though no evidence has been obtained about the impact of unemployment and impor...

Abstract: Central banks have long been interested in obtaining precise estimations of money demand given the fact that the evolution of money demand plays a key role over several monetary variables. One implication of currency substitution is that the exchange rate could serve as another determinant of the demand for money. Due to the recent currency crisis in Iran, it would be important to inv...

Recent years have witnessed very high and volatile interest rates. This has stirred a debate among analysts as to whether observed interest rates are high by historical standards. Some analysts, focusing on the before-tax real rate, argue that if the observed nominal interest rate is corrected for the effect of expected (or actual) inflation, the ex ante (or ex post) real rate has been very hig...

In this paper I study the long-term effects of inter-municipal moving during childhood on income using Swedish register data. Due to the richness of the data I am able to control for important sources of selection into moving, such as parent separation, parents’ unemployment, education, long run income, and immigration background. I find that children’s long run incomes are significantly negati...

Rising Food Prices and Household Welfare: Evidence from Brazil in 2008 Food price inflation in Brazil in the twelve months to June 2008 was 18 percent, while overall inflation was 5.3 percent. This paper uses spatially disaggregated monthly data on consumer prices and two different household surveys to estimate the welfare consequences of these food price increases, and their distribution acros...

This paper uses Japanese data which includes measures of self-declared satisfaction, reference-group income, and the direction and intensity of income comparisons. Relative to Europeans, the Japanese compare more to friends and less to colleagues, and compare their incomes more. The relationship between satisfaction and others' income is negative, and more negative for those who report greater ...

This paper asks whether there can be unanimous support for a fiscal constitution that includes tax expenditures for giving among the set of available fiscal instruments. We describe a political economy model of fiscal choices where individuals with different incomes vote over levels of proportional income taxation and over tax incentives for giving, and investigate how the availability of such ...