There is strong evidence suggesting that di¤erent income groups consume di¤erent bundles of goods. Hence, trade liberalization can a¤ect welfare inequality via changes in the relative prices of goods consumed by di¤erent income groups (the price e¤ect). In this paper, I develop a framework that enables us to explore the role of the price e¤ect in determining welfare inequality. I …nd that trade...

The increasing international mobility of high-skill individuals is often seen as posing a threat to domestic social welfare, by limiting the ability of governments to tax these individuals and redistribute to the poor. In this note, we examine a simple dynamic nonlinear income tax model without commitment. In this setting, it is shown that the threat of emigration by high-skill individuals faci...

Since objective news coverage is vital to democracy, captured media can seriously distort collective decisions. The current paper develops a voting model where citizens are uncertain about the welfare e¤ects induced by alternative policy options and derive information about those e¤ects from the mass media. The media might however secretly collude with interest groups in order to in‡uence the p...

Due to factors such as temptation, choices may not respect normative preference (the agent’s own, subjective view of what constitutes his welfare). Nevertheless, the evidence on preference reversals suggests a means of recovering normative preference from choice. A de…nition of normative preference in terms of choices between su¢ ciently delayed alternatives is formulated and studied. Mild cond...

In this paper, we consider a relationship between equity and efficiency in queueing problems. We show that under strategy-proofness, anonymity in welfare implies queue-efficiency. Furthermore, we also give a characterization of the equally distributed pairwise pivotal rule, as the only rule that satisfies strategy-proofness, anonymity in welfare and budget-balance. keywords: Queueing Problems, ...

Mandatory data disclosure is an essential feature for credible empirical work but comes at a cost: First, authors might invest less in data generation if they are not the full residual claimants of their data after their …rst publication. Second, authors might "strategically delay" the time of submission of papers in order to fully exploit their data in subsequent research. We analyze a three-s...

Theoretical studies on the e¤ect of life settlement market on consumer welfare show that it crucially depend on the reasons for the lapsation of life insurance policies: if lapsation is purely due to the loss of bequest motives by the policyholders, then life settlement is shown to be detrimental to consumer welfare in equilibrium; on the other hand, if lapsation results from liquidity shocks, ...

This paper proposes an investment cost recovery based efficient and fast sequential optimization approach to optimal allocation of thyristor controlled series compensator (TCSC) in competitive power market. The optimization technique has been used with an objective to maximizing the social welfare and minimizing the device installation cost by suitable location and rating of TCSC in the system....