We study how an optimal income tax and an optimal public-goods provision rule respond to preference and productivity shocks. A conventional Mirrleesian treatment is shown to provoke manipulations of the policy mechanism by individuals with similar interests. We therefore extend the Mirrleesian model so as to include a requirement of coalition-proofness. The main results are the following: first...

To generate big responses of unemployment to productivity shocks in a business cycle context or to productivity changes in a welfare state context, researchers have reconfigured matching models in various ways, e.g., by elevating the utility of leisure, by making wages sticky, by assuming alternating-offer wage bargaining, by introducing fixed matching costs, and the costly acquisition of credi...

his article, a summary of Fisk,1,2 estimates the nationwide improvements in health and productivity potentially attainable by providing better indoor environmental quality (IEQ) in U.S. buildings. Estimates include the potential reductions in three categories of health effects, the associated economic benefits, and the potential direct improvements in productivity not mediated through health.