Objective: To estimate cigarette demand and to simulate a tax policy targeted to reduce tobacco consumption. Materials and methods: Demand was estimated using a vector error correction model. Simulation exercises present the impact of a tax increase on consumption and revenues. Results: Changes in real income and the real price of cigarettes affect the demand for cigarettes in Argentina. Th...

abstract in this study, we applied recently developed panel unit root and cointegration techniques to examine the long-run real income per capita and price elasticities for demand of electricity in selected middle east and north african (mena) countries using an annual data series from 1990 to 2011.our main finding from the panel analysis is that the demand for electricity is highly price elast...

This paper studies money demand in Switzerland under free banking before the establishment of the Swiss National Bank. We find that, in addition to income, the banks’ balance-sheet-to-GDP ratio and the number of banks were important determinants of long-run money demand. The former variable also played an important role in the monetary adjustment process. We also detect a strong positive long-r...

During extreme hyper-inflations productivity tends to fall dramatically. Yet, in models of money demand in hyper-inflation variables such as real income has been given a somewhat passive role, either assuming it exogenous or to have a negligible role. In this paper we use an empirical methodology based on cointegrated vector autoregressions to analyse data from the extreme Yugoslavian episode t...

This article reexamines the consistency of the permanent-income hypothesis with aggregate postwar U.S. data. The permanent-income hypothesis is nested within a more general model in which a fraction of income accrues to individuals who consume their current income rather than their permanent income. This fraction is estimated to be about 50%, indicating a substantial departure from the permanen...

This article details the changes in total income and the composition of its sources that occur upon initial receipt of Social Security benefits, and in the first 4 years thereafter. The study shows that, for many persons, "retirement" is a gradual process rather than an immediate cessation of all paid work. About half the persons entering the rolls continue at least some paid employment after b...

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 shows that in a one-sector real business cycle model with strong increasing returns in production, progressive taxation of labor income can stabilize the economy against sunspot ‡uctuations, even when the capital tax schedule is ‡at. This result is consistent with the U.S. tax code in which labor-income taxation is more progressive than capital-income taxation.