We study tax and regulatory policy in the legal marijuana market using unique administrative data from Washington state. Washington's retail entry restrictions have resulted firms with substantial power who behave like local monopolists. show how presence of causes recommendations to differ standard models that assume perfect competition. Combining structural demand measured pass-through, we is...

Recent studies on Laffer curves (tax revenue curves) find that the curve for consumption tax might not be hump-shaped, but monotonically increasing, whereas labor income is hump-shaped. This study investigates cause of this difference in shapes two curves, by decomposing effects an increase a rate base as product parts: (i) relative price leisure (RPL), and (ii) substitution effects. It shown f...

According to the Lucas-Stokey result, a government can structure its debt maturity guarantee commitment optimal fiscal policy by future governments. In this paper, we overturn conclusion, showing that it does not generally hold in same model and under definition of time consistency as Lucas-Stokey. Our argument rests on existence an overlooked problem cannot be remedied with maturity: will nece...

Recently much attention has been given to the idea of reducing the debt of developing countries through a "menu approach" of schemes that attempt to harness the discounts on debt in the secondary market. This paper, after reviewing the rationale for the orthodox strategy of concerted lending and the case for debt forgiveness, examines the logic behind several market-based debt reduction schemes...