In this paper we derive conditions under which optimal tax rates for addictive goods exceed tax rates for non-addictive consumption goods in a rational addiction framework where exogenous government spending cannot be financed with lump sum taxes. We reexamine classic results on optimal commodity taxation and find a rich set of new findings. Our dynamic results imply tax rates on addictive good...

Steady-State Labor Supply Elasticities: A Survey Previous reviews of static labor supply estimations concentrate mainly on the evidence from the 1980s and 1990s, Anglo-Saxon countries and early generations of labor supply modeling. This paper provides a fresh characterization of steady-state labor supply elasticities for Western Europe and the US. We also investigate the relative contribution o...

The mathematical conditions for the existence of macroeconomic production functions that are state functions of the economic system are pointed out. The output elasticities and the elasticities of substitution of energy-dependent Cobb-Douglas, CES and LinEx production functions are calculated. The output elasticities, which measure the productive powers of production factors and whose numerical...

There is a widely discussed problem of publication bias in medical and health services research. Where quantitative effects form the basis of a publication a 'winner's curse' curse may apply. This phenomenon may occur as prospective authors of research papers compete by reporting 'more extreme and spectacular results' in order to increase the chances of their paper being accepted for publicatio...

We examine the relative dynamic responses of state personal tax revenues and sales tax bases to changes in state personal income. Our econometric analysis, which includes separate analyses of long-run and short-run dynamics for each state, permits the estimation of asymmetric short-run responses depending upon the relationship between current and expected tax base growth. Results indicate that ...

This paper analyses price elasticities in the Austrian market for mobile telecommunications services using data on firm specific tariffs in the period between January 1998 and March 2002. Dynamic panel data regressions are used to estimate short-run and long-run demand elasticities for business customers and for private consumers with both postpaid contracts and prepaid cards. We find that busi...

This paper develops a method to jointly estimate crop yield elasticities and area elasticities with respect to output prices based on a theoretically consistent model. The model uses a duality theory approach for the multi-output and multi-input firm, and introduces uncertainty in the level of target output which conditions the cost minimization problem, in the output prices and in the conditio...

This paper is a modern synthesis of the more than seventy years of literature on the elasticity of substitution. At times, authors, such as Mundlak, have provided syntheses of the literature but these often seem to be forgotten by later authors and particularly by applied economists. I synthesize several of these approaches with the full development of duality theory. There are many different l...

An elasticity summarizes a large amount of information in a single number. Levels and distribution of incomes, price levels of the specific good and of substitute and complementary goods, preferences and tastes, transaction costs, etc., can, ceteris paribus, affect the measured value of any particular demand-price elasticity. The elasticity concept normalizes for the measurement scales (e.g., p...

Recent economic geography and trade empirical studies based on monopolistic competition [Hanson, 1998; Head and Ries, 1999; Hummels, 1999], suggest high levels of trade price elasticities (between 3 and 11). However, direct estimations of price-elasticities in trade equations, using price indexes at aggregate or industry levels, usually lead to much lower values (around unity). In this paper, w...