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Full-Text Articles in Social and Behavioral Sciences
Effort, Luck, And Voting For Redistribution, Lars J. Lefgren, David P. Sims, Olga B. Stoddard
Effort, Luck, And Voting For Redistribution, Lars J. Lefgren, David P. Sims, Olga B. Stoddard
Faculty Publications
We conduct an experiment to determine how the correspondence between economic rewards and effort, as opposed to luck, affects subjects' ex post voting over redistribution. We find that a large, statistically significant proportion of both high- and low-payoff voters are willing to vote contrary to their self-interest in favor of groups that exert proportionately more effort. We confirm these results in an additional, distinct sample. We also show that when subjects' own effort is greater than the group's average effort level, they exhibit greater self interest in voting for redistribution compared to subjects whose effort is below average. Our results …
Naked And Covered In Monte Carlo: A Reappraisal Of Option Taxation, Eric D. Chason
Naked And Covered In Monte Carlo: A Reappraisal Of Option Taxation, Eric D. Chason
Faculty Publications
The market for equity options and related derivatives is staggering, covering trillions of dollars worth of assets. As a result, the taxation of these instruments is inherently important. Moreover, the importance is made even more acute by the use of options in creating more complex transactions and in avoiding taxes. Consider an equity call option, which entitles, but does not obligate, its holder to buy stock at a set price at a set time in the future. Option theory gives us a way to break the option down into more fundamental units. For example, an equity call option over 10,000 …
Geo-Rent: A Plea To Public Economists, Fred Foldvary
Geo-Rent: A Plea To Public Economists, Fred Foldvary
Faculty Publications
This paper presents an analysis of what is termed “geo-rent,” what the plot-devoid-of-improvements would rent for in an auction. Most of the public finance literature and current thought has disvalued and misunderstood the actual and potential role of land and its rent for public revenue. The qualities of land value that make it a superior source of revenue—having little or no deadweight loss, and capitalizing civic infrastructure and services—are recognized but compartmentalized, ignored in the broader policy discussions. That the “producer surplus” is in reality mostly land rent is little recognized. The “Henry George Theorem” that rent can optimally equal …