SOCIAL GAIN,WELFARE, POLITICAL ECONOMY AND A' THAT

The economic criterion of public investment choice is aggregate consumers' surpluses and producers' rents generated by the investment. Its analytical model is a social revenue function and a social cost function. It is a welfare criterion only so far as efficiency is a welfare component and then subject to severe limitations. It is argued here that the economist's conclusions rest in part on a set of value preferences; therefore, the test of their rightness is in part their acceptability to the public choice-maker.     

Stock Returns and Exchange Rate Nexus in Ghana: A Bayesian Quantile Regression Approach

This paper presents analysis of the relationship and dependence structure between stock returns and exchange rates in Ghana using data of daily periodicity from January 4, 2011 to July 31, 2014. Analyses are conducted by means of Bayesian quantile regression (QR) technique and multiple causality tests. Our findings suggest high dependence of the equity market on the foreign exchange market in Ghana, and that the link between the two markets follows the international trade‐oriented model more than the portfolio balance theory. We report that among the six exchange rates used, only the cedi–dollar registers instantaneous effect on the equity market.     

Optimal Income Taxation With Quasi-Linear Preferences Revisited

Properties of the optimal income tax for quasi-linear in leisure preferences are studied. With utilitarian or maxi-min objectives, closed-form solutions are obtained. Bunching occurs over intervals where the second-order incentive condition is binding. Whether this occurs depends solely on the skill distribution. The patterns of consumption and tax rates in the nonbunched range are independent of whether the second-order incentive constraints are binding. Bunching at the bottom can also occur if a non-negative constraint on incomes is binding for some households. The pattern of marginal tax rates depends on the skill distribution and whether it is truncated.     

Reporting bias in incomplete information model

Company financial reports are likely to be systematically biased. In this paper, we extend the Duffie and Lando (2001) model with a skewness correction which can account for both random and directional components of reporting noise.     

Optimal redistribution when different workers are indistinguishable

Abstract.  Using the standard non linear income and commodity taxation framework, we examine the optimal policy to be adopted when the same labour disutility can receive two opposite interpretations: taste for leisure and activity limitation. In the absence of complete information about individual characteristics, an income tax does not allow distinguishing lazy from handicapped individuals. One may rely, however, on a combination of commodity and income taxes to redistribute from the former to the latter when they differ in their preferences for commodities. JEL Classification: H21, H41
Redistribution optimale quand les divers travailleurs sont indistincts.  A l'aide du cadre d'analyse conventionnel de fiscalité non linéaire sur les revenus et les biens, ce mémoire examine la politique optimale à adopter quand le même niveau de désutilité du travail peut être interprété de deux manières opposées : goût pour le loisir et souffrance attribuable à une infirmité. En l'absence de renseignements complets à propos des caractéristiques des individus, un impôt sur le revenu ne permet pas de distinguer les individus paresseux de ceux qui sont handicapés. On peut cependant compter sur une combinaison de taxes sur les revenus et les biens pour redistribuer du premier groupe vers le second quand leurs préférences pour les biens diffèrent.     

Crises and the International System

This paper reviews the recent experience of financial crises since 2007, including the continuing crisis in the euro zone. I seek to answer three main questions: In what respects (if any) is the recent experience of crises novel? How special is the euro crisis? And what changes in the international financial architecture can reduce the chances of future crises?