There is a well-developed literature of project evaluation based on the assumption that a project is "efficient" if losers could, potentially, be compensated by gainers. In sharp contrast, relatively little systematic work has been done to develop a corresponding economics of project evaluation under actual compensation criteria. This is largely because the amount of compensation that is actual...

Why are regional unemployment differentials in Europe so persistent if, as the wage curve literature demonstrates, there is no compensation in labour markets? We hypothesize that workers in high-unemployment regions are compensated in housing markets. Modelling regional unemployment differentials as a consequence of centralized wage bargaining, we show that clearing of land markets may undo the...

We develop a two-country, two-sector model of trade where the only difference between the two countries is their distribution of human capital endowments. We show that even if the two countries have identical aggregate human capital endowments the pattern of trade depends on the properties of the two human capital distributions. We also show that the two distributions of endowments also complet...

This paper uses individual tax returns micro data from 1960 to 1997 to analyze whether taxpayers bunch at the kink points of the U.S. income tax schedule generated by jumps in marginal tax rates. Clear evidence of bunching is found only at the threshold of the first tax bracket where tax liability starts. Evidence for other kink points is weak or null. The large jumps in marginal tax rates crea...

The goal of the Cannon Caliber Program is to drive 185 g integrated launch packages to 1,850 d s . Three, fiveround salvos with a firing rate of 5 Hz are intended to defeat specified targets at a range of up to 3 km. After an extensive alternative study, the design team consisting of United Defence FMC/BMY, the Center for Electromechanics at The University of Texas at Austin (CEM-UT) and Kaman ...

To be more general we call these the uncompensated (or Marshallian or Walrasian) demand functions. These functions are "uncompensated" since price changes will cause utility changes: a situation that does not occur with compensated demand curves. Substituting these solutions back into the utility function, the maximand, we get the actual utility achieved as a function of prices and income. This...

Simple income-based incentives to purchase health insurance (tax credits or deductions, or subsidies) are unlikely to succeed in significantly reducing the number of uninsured because income is not a good predictor of the extent to which individuals use medical service. Proposals to provide incentives to low-income people so they will purchase individual health insurance need to address the inh...

This paper investigates why children work by studying the wage elasticity of child labour supply. It is argued that a negative wage elasticity favours the hypothesis that poverty compels work whereas a positive wage elasticity would favour the alternative view that children work because the relative returns to school are low. Using data for 2400 households in rural Pakistan, we estimate structu...