The existing theoretical literature provides little justi…cation for a corporate debt subsidy. We illustrate the welfare bene…t of this subsidy and study how the social costs and bene…ts change with the duration of industry distress. In our model, two …rms engage in socially wasteful competition for survival in a declining industry. Firms di¤er on two dimensions: exogenous productivity and endo...

This paper explores the optimal interaction between the tax system and unemployment compensation in insuring people against the risks of involuntary unemployment and low ability. To that end, we introduce search unemployment in a model of optimal non-linear income taxation. We ...nd that the optimal search subsidy (i.e. the di¤erence between the in-work bene...t and the unemployment bene...t) i...

It is well known that higher unemployment bene…ts lead to longer unemployment durations. This result has been interpreted as evidence of “moral hazard”–a behavioral response to distorted marginal incentives to search. This paper shows that unemployment bene…ts also raise durations through a “liquidity”e¤ect for households who cannot smooth consumption perfectly. The empirical importance of the ...

this study examined the influence of pre-frying treatments and oil type on the moisture outflow and oil uptake during the frying of potato strips. the pre-treatments were 6 min blanching in a 85°c a water bath containing 0.5% calcium chloride and immersion in a 1% solution of carboxymethyl cellulose; 6 min blanching in a 85°c water bath containing 0.5% calcium chloride and immersion in a 2% sol...

There is considerable disagreement over whether or not gaining viability bene¢ts to o¡spring could be substantial enough to overcome the costs of female choosiness. A recent review suggested that the `lek paradox' might be resolved by large indirect bene¢ts as indicated by highly heritable ornamental traits. We selected males of a wolf spider Hygrolycosa rubrofasciata in relation to their sexua...