This paper analyzes Pareto optimal non-linear taxation of profits and labor income in a private information economy with endogenous firm formation. Individuals differ in both their skill and their cost of setting up a firm, and choose between becoming workers and entrepreneurs. I show that a tax system in which entrepreneurial profits and labor income must be subject to the same non-linear tax ...

This study examines the cost and profit efficiency of banking sectors in twelve transition economies of Central and Eastern Europe (CEE) over the period 1993-2000, using the stochastic frontier approach (SFA) and the distribution free approach (DFA). The managerial inefficiencies in CEE banking markets were found to be significant, with average cost efficiency level for 12 countries of 72 and 7...

This paper theoretically studies the consequences of heterogeneity on self-governance, cooperation, and trust in large communities. I consider a game model where players belong to a large population and are randomly matched. Players interact with each other infrequently and, when matched, play a prisoners’ dilemma. There exists an institution that can convey information on play histories. Playe...

We study an ascending auction of an indivisible good in which agents observe multidimensional Gaussian signals about their valuation of the good. The equilibrium is solved using a two-step procedure. The first step is to project the signals into a one-dimensional equilibrium statistic. The second step is to solve for the equilibrium as if agents observed only the equilibrium statistic (and henc...

Importance of Feed Efficiency The ability to improve the utilization of nutrients has tremendous potential to improve profitability. It has been estimated that a 10% improvement in performance (gain) would increase profit by 18%, while a 10% improvement in efficiency could improve profit by upwards of 43%. It has also been estimated that a 10% improvement in feed efficiency (assumed to be a 2 l...

The paper studies on the core philosophy and algorithm of the designing economic mechanisms theory, a new algorithm of designing incentive compatible power market mechanisms is proposed, a generation side power market mechanism model which has features of inventive compatibility, informationally efficient and decentralized decision is constructed. The power market based on the designing economi...

Many researchers have noted that large information technology (IT) investments in the United States have not been accompanied by gains in productivity. This phenomenon has been termed the "productivity paradox". The assumption underlying this paradox is that IT should enable individuals and organizations to become more productive. The purpose of this paper is to provide insight into the results...

Data Envelopment Analysis (DEA) is a mathematic technique to evaluate the relative efficiency of a group of homogeneous decision making units (DMUs) with multiple inputs and outputs. The efficiency of each unit is measured based on its distance to the production possibility set (PPS). In this paper, the BCC model is used in output-oriented. The average return on profit as output and the covaria...