The paper offers a proof that expected utility maximisation with logarithmic utility is a dominant preference in the biological selection process in the sense that a population following any other preference for decision-making under risk will, with a probability that approaches certainty,...

To date, the political discussion of Europe’s future suffers from a surprising lack of foundation in terms of economic theory: the straightforward theory of fiscal federalism, which has been well developed in a vast body of literature, has been largely neglected. This paper tries to help fill...

From the perspective of parents, redistributive taxation can be seen as social insurance for their children, for which no private alternative exists. Because private insurance comes too late during a person’s life, it cannot cover the same risks as social insurance. Empirically, 85\% of social...

This paper studies the question of how unilateral changes in the rate of inflation affect the international allocation of capital. Presenting a model that incorporates a transaction motive for money holding and capital income taxation with historical cost accounting, it counters the view that...

Top economists provide a concise and accessible evaluation of major developments in trade and trade policy. They examine the key issues pertinent to the multinational trading system, as well as regional trade arrangements and policy developments at the national level Provides up-to-date...

In 2005 the world economy still developed strongly, but, with GDP growth of 41/2 percent, at a somewhat slower pace than in 2004. Developments still differed substantially among major regions. Whereas output continued to increase in a robust and strong manner in the US and it showed a clear...

It is not surprising that the U.S. has been by far the world???s largest shock producer in this crisis. The big shock absorbers on the other hand were Japan, Russia and Germany, whose exports shrank more than their imports.

This paper deals with taxation in a framework which is a synthesis between the neoclassical growth model, augmented by a (separable) sector of resource-extracting firms, and the Fisherian intertemporal general equilibrium model: market forces bring about the neoclassical optimal growth path...