Capital Tax Competition and Returns to Scale

There is a gap between the predictions of capital tax competition models and the reality they purport to describe. In a standard capital-tax model, with head taxes, capital-importing regions tax capital and capital-exporting regions subsidize capital. In the real-world, competing regions appear to subsidize capital whether or not they are capital importers. We show that by relaxing the standard assumption of constant returns to scale symmetric regions in a Nash equilibrium may all subsidize capital.We also prove that any ine¢ciencies in a non-symmetric Nash equilibria arise entirely from regions’ incentives to manipulate the terms of trade, and not from increasing returns.We also compare our results to those in captial tax competition models without head taxes.

The Correlation Between Husband's and Wife's Education: Canada, 1971-1996

We present a measure of the correlation between the education levels of spouses based on a bivariate ordered probit model. The change in this correlation over time can be measured while controlling for the large changes in the educational attainment levels. The model is estimated with data from 20 Surveys of Consumer Finances in Canada over 1971-1996. Our main findings are a reduction in this correlation among younger couples beginning in the 1980s, and an inverted U- shaped effect of the spouses' age difference on the correlation, with the maximum correlation occurring approximately when the spouses' ages are equal.correlation; education level; bivariate ordered probit model; SCF

The Correlation Between Husband's and Wife's Education: Canada, 1971-1996

We present a measure of the correlation between the education levels of spouses based on a bivariate ordered probit model. The change in this correlation over time can be measured while controlling for the large changes in the educational attainment levels. The model is estimated with data from 20 Surveys of Consumer Finances in Canada over 1971-1996. Our main findings are a reduction in this correlation among younger couples beginning in the 1980s, and an inverted U- shaped effect of the spouses' age difference on the correlation, with the maximum correlation occurring approximately when the spouses' ages are equal.education; correlation; age

Tariff Wars and Trade Deals with Costly Government

We study a simple model of tariff wars and trade deals in which government revenue collection and disbursement uses resources. The introduction of costly governments leads to lower non–cooperative tariffs, the possibility that a less costly government may win a tariff war, and fully cooperative trade deals where countries lower tariffs but do not eliminate them, even with lump–sum taxes and transfers.

The Relevance of Hegel's Logic

Hegel defines his Logic as the science that thinks about thinking.nbsp; But when we interpret that work as outlining what happens when we reason we are vulnerable to Fregersquo;s charge of psychologism.nbsp; I use Hegelrsquo;s tripartite distinction among understanding, dialectical and speculative reason as operations of pure thought to suggest how thinking can work with objective concepts.nbsp; In the last analysis, however, our ability to move from the subjective contingency of representations and ideas to the pure concepts we think develops from mechanical memory, which separates sign from sense so hat we can focus simply on the latter.nbsp; By becoming aware of the connections that underlie our thinking processes we may be able to both move beyond the abstractions of symbolic logic and clarify what informal logicians call relevance

The Independence and Economic Security of Older Women Living Alone

We study women aged 51-75 who live alone and are not married over the period 1969-1993 using national samples from The Survey of Consumer Finances (SCF) and The Family Expenditure Survey (FAMEX). We examine Income and Expenditure Patterns over the period and find that: there have been substantial increases in real incomes of these women, particularly during the 1970's. The principal source of growth was government transfers and especially the growth in CPP incomes. Should governments withdraw this financial support, low incomes could quickly re-emerge. Incomes of those who were previously married and of the older group of these women (ages 60-75) grew more rapidly over the period. The growth in income has gone almost entirely into consumption. Some of these women are able to save, but like most sub-groups of the Canadian population there is tremendous variability in saving rates among older women.SCF; FAMEX; income; expenditure; older women

Cohort, Year and Age Effects in Canadian Wage Data

We use Canadian Surveys of Consumer Finances 1971-1993 to study the wages of full-time, full-year male and female workers. Median real wages of 24-year-old males without a university degree fell by 25% between 1978 and 1993. For 24-year-old females the decline was more modest and reversed in 1987, but real wages in 1993 were still significantly lower than they were in 1978. We investigate whether these changes are permanent "cohort" effects or more temporary "year" effects. Graphs of median wages against year and age indicate some periods where year effects are more prominent than cohort effects and other periods where the reverse is true. We then compare the results from two models, one assigning the trends to year effects, the other assigning them to cohort effects, and use these models to produce real wage projections.SCF; wages; cohort

Capital tax competition with heterogeneous firms and agglomeration effects

Our paper extends the capital tax competition literature by incorporating heterogeneous capital and agglomeration. Our model nests the standard tax competition model as well as the special case in which there is agglomeration but no firm/capital heterogeneity and the opposite case, firm heterogeneity with no agglomeration. We build on the existing tax competition literature as well as establish a link between this literature and the more recent work on agglomeration using the new economic geography model. Our main contribution lies in allowing for firm heterogeneity which we show plays a role similar to decreasing returns in regional production