On the optimality of joint taxation for noncooperative couples

We present a noncooperative model of a family's time allocation between work and a home-produced public good, and examine whether the income tax should apply to couples or individuals. While tax-induced labor supply distortions lead to overprovision of the public good, spouses' failure to internalize the collective effect of their choices points towards underprovision. A large parameter range exists for which a move from individual to joint taxation improves the welfare of both spouses. The source of Pareto-improvement consists in moving the level of the public good closer to its first-best, while an adjustment of intra-family transfers compensates the secondary earner for the increased tax load.     

New Dimensions of Service Offshoring in World Trade

Intereconomics - This paper discusses the growing dimensions of the offshoring of service activities both in manufacturing and service industries. Trade in Value-Added data implies a great...     

Governing farmland conversion: Comparing China with the Netherlands and Germany

Farmland conversion has become an increasing concern in China and other parts of the world, including Europe and the USA. Be it for environmental or food security reasons, questions arise concerning how urbanization should be governed, i.e. what rules and regulations could enhance the efficiency and sustainability of land use. Taking a first step toward answering such questions, this paper describes different governance structures for farmland conversion in the Netherlands, Germany, and China. Secondly, it compares five identified differences between these countries in the realms of land property, land use planning, the role of the market, the role of government, and the performance of governance structures. The purpose of this paper is to develop an approach for comparing governance structures for land conversion that: (a) offers some opportunities for exchange of experience between the three countries and (b) provides a framework for further research on governance structures in farmland conversion.     

Endogenous Random Asset Prices in Overlapping Generations Economies

This paper derives a general explicit sequential asset price process for an economy with overlapping generations of consumers. They maximize expected utility with respect to subjective transition probabilities given by Markov kernels. The process is determined primarily by the interaction of exogenous random dividends and the characteristics of consumers, given by arbitrary preferences and expectations, yielding an explicit random dynamical system with expectations feedback. The paper studies asset prices and equity premia for a parametrized class of examples with CARA utilities and exponential distributions. It provides a complete analysis of the role of risk aversion and of subjective as well as rational beliefs.     

HIV und AIDS: Paradigmenwechsel in der Pflege

Zusammenfassung  Von der Sterbebegleitung zur Lebensgestaltung — Bei der Pflege und Betreuung von Menschen mit HIV und AIDS hat die F?rderung von Gesundheit besondere Bedeutung. Es gilt, den Patienten als gleichberechtigten Partner zu begreifen und mit ihm gemeinsam ein Konzept zu entwickeln, das sich an seinen Bedürfnissen und seiner Lebenswelt orientiert und ihn für die Zukunft – sein Leben mit HIV – st?rkt.     

Measuring the effects of geographical distance on stock market correlation

Recent studies suggest that the correlation of stock returns increases with decreasing geographical distance. However, there is some debate on the appropriate methodology for measuring the effects of distance on correlation. We modify a regression approach suggested in the literature and complement it with an approach from spatial statistics, the mark correlation function. For the stocks contained in the S&P 500 that we examine, both approaches lead to similar results. Contrary to previous studies we find that beyond 50 miles geographical proximity is irrelevant for stock return correlations. For distances below 50 miles, we can show that the magnitude of local correlations varies with investor sentiment.