Edgeworth's Taxation Paradox and the Nature of Demand and Supply Functions
01 Oct 1932-Journal of Political Economy (The University of Chicago Press)-Vol. 40, Iss: 5, pp 93-122
TL;DR: In this article, the authors show that a tax imposed on the seller of a monopolized article may lead to an actual lowering of the price to the buyer, and that the result of a tax is to cheapen the untaxed as well as the taxed commodities.
Abstract: That a tax imposed on the seller of a monopolized article may lead to an actual lowering of the price to the buyer has been shown by F. Y. Edgeworth.2 His example was of a railway supplying two classes of passenger service at different prices and, unhindered by governmental interference, setting its rates so as to make its own profit a maximum. When the company is compelled to pay a tax on each first-class ticket, it finds it profitable, in Edgeworth’s example, to reduce rates on both classes of accommodations. Regarding this paradoxical conclusion, Professor Seligman writes:3
The mathematics which can show that the result of a tax is to cheapen the untaxed as well as the taxed commodities will surely be a grateful boon to the perplexed and weary secretaries of the treasury and ministers of finance throughout the world!
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TL;DR: Ebsco as mentioned in this paper focuses on additive and homogeneous production possibility frontiers that have played an important role in formulating statistical tests of the theory of production and characterizes the class of production possibility frontier that are homogeneous and additive.
Abstract: Focuses on additive and homogeneous production possibility frontiers that have played an important role in formulating statistical tests of the theory of production. Characterization of the class of production possibility frontiers that are homogenous and additive; Representation of the production possibility frontier; Statistical tests of the theory of production. (Из Ebsco)
2,619 citations
TL;DR: The index concept new to be treated has been introduced by Konyus and further developed by Frisch [2] and Roy [8], the index refers, in principle, to one consumer only.
Abstract: The index concept new to be treated has been introduced by Konyus and further developed by, among others, Frisch [2] and Roy [8]. The index refers, in principle, to one consumer only. For the basic concepts concerning preference fields and index numbers we may refer to the monograph by Wold [1~2] .This includes as exercises some of the results given in the sequel which have had their origin in discussions at Wold 's Uppsala seminar. A price index is defined as follows (Konyus, [5])Let t~(P, S)=t~ denote the income, at ~tvich the consumer at prizes { P ~ b~ys a q,mntity combination sit~,ated oft the quantity indifferertce level S. A priae irvdex, denoted by I0~ (S) is then defined by
1,873 citations
Posted Content•
TL;DR: This paper analyzed the relationship between employee satisfaction and long-run stock returns and found that employee satisfaction is positively correlated with shareholders' returns and need not represent managerial slack, even when independently verified by a highly public survey on large firms.
Abstract: This paper analyzes the relationship between employee satisfaction and long-run stock returns. A value-weighted portfolio of the "100 Best Companies to Work For in America" earned an annual four-factor alpha of 3.5% from 1984-2009, and 2.1% above industry benchmarks. The results are robust to controls for firm characteristics, different weighting methodologies and the removal of outliers. The Best Companies also exhibited significantly more positive earnings surprises and announcement returns. These findings have three main implications. First, consistent with human capital-centered theories of the firm, employee satisfaction is positively correlated with shareholder returns and need not represent managerial slack. Second, the stock market does not fully value intangibles, even when independently verified by a highly public survey on large firms. Third, certain socially responsible investing ("SRI") screens may improve investment returns.
1,256 citations
Book•
01 Jan 1997
TL;DR: Deaton as discussed by the authors reviewed the analysis of household survey data, including the construction of household surveys, the econometric tools useful for such analysis, and a range of problems in development policy for which this survey analysis can be applied.
Abstract: Two decades after its original publication, The Analysis of Household Surveys is reissued with a new preface by its author, Sir Angus Deaton, recipient of the 2015 Nobel Prize in Economic Sciences. This classic work remains relevant to anyone with a serious interest in using household survey data to shed light on policy issues. This book reviews the analysis of household survey data, including the construction of household surveys, the econometric tools useful for such analysis, and a range of problems in development policy for which this survey analysis can be applied. The author's approach remains close to the data, using transparent econometric and graphical techniques to present data in a way that can clearly inform policy and academic debates. Chapter 1 describes the features of survey design that need to be understood in order to undertake appropriate analysis. Chapter 2 discusses the general econometric and statistical issues that arise when using survey data for estimation and inference. Chapter 3 covers the use of survey data to measure welfare, poverty, and distribution. Chapter 4 focuses on the use of household budget data to explore patterns of household demand. Chapter 5 discusses price reform, its effects on equity and efficiency, and how to measure them. Chapter 6 addresses the role of household consumption and saving in economic development. The book includes an appendix providing code and programs using STATA, which can serve as a template for the users' own analysis.
1,195 citations