The equilibrium allocation of capital and equilibrium market prices are derived for a world economy with unified securities market, mobile capital, no uncertainty, and varying tax rates on different sources of income in each country. The paper then characterizes optimal tax rates for a small country in this setting, focusing on the peculiar incentives created when the before-tax rate of return differs among securities due to differences in their typical tax treatment.

[This paper estimates the incidence of response errors in the Current Population Survey. It proposes a procedure for adjusting the Bureau of Labor Statistics' gross flows data on labor market transitions to account for these errors. Although the findings are not definitive because the procedure makes particular assumptions regarding the stochastic process generating response errors, they illustrate the potentially substantial effect of response errors on studies of labor market behavior. The adjustment procedure suggests that because measurement errors give rise to spurious transitions between labor market states, the labor market may be less dynamic than previously thought. The results imply that conventional measures may understate the duration of unemployment by as much as eighty per cent, and overstate the frequency of labor force entry and exit by even more.]

This paper develops and estimates a demand model to describe a household's demand for distance from a landfill with hazardous wastes. This model provides one basis for gauging the intensity of a household's desire to avoid living near this type of facility. Using the conceptual framework of a hedonic property value model to provide the basis for demand for distance questions, a survey in suburban Boston elicited this information from 609 households. The demand estimates imply that the average household would realize a consumer surplus between $330 to $495 annually for each mile between its residence and a landfill containing hazardous waste.

Journal Article Unscrambling the Concept of Chaos Through Thick and Thin: Reply Get access Richard H. Day Richard H. Day University of Southern California Search for other works by this author on: Oxford Academic Google Scholar The Quarterly Journal of Economics, Volume 101, Issue 2, May 1986, Pages 425–426, https://doi.org/10.2307/1891124 Published: 01 May 1986

This paper examines the power of statistical tests commonly used to evaluate the efficiency of speculative markets. It shows that these tests have very low power. Market valuations can differ substantially and persistently from the rational expectation of the present value of cash flows without leaving statistically discernible traces in the pattern of ex-post returns. This observation implies that speculation is unlikely to ensure rational valuations, since similar problems of identification plague both financial economists and would be speculators.

This paper examines the power of statistical tests commonly used to evaluate the efficiency of speculative markets. It shows that these tests have very low power. Market valuations can differ substantially and persistently from the rational expectation of the present value of cash flows without leaving statistically discernible traces in the pattern of ex‐post returns. This observation implies that speculation is unlikely to ensure rational valuations, since similar problems of identification plague both financial economists and would be speculators.