Labor Economics

The city of Trenton is considering a substantial annual per employee tax on Trenton State College. Suppose that the labor supply curve to TSC is relatively flat because the employees have alternative places to work, and that the College has limited liability to substitute machines or other inputs for people. a. Show this situation in the market for labor graphically and explain who bears most of the burden of the tax. b. Now consider the market for a college education as well. Suppose the College has an upward sloping supply curve and discuss how it changes in response to the tax. Suppose that there is a downward sloping demand for a TSC education. Show who else bears part of the... click for more

Tax-exempt securities

Who are the principal owners of tax-exempt securities? How has this changed over time? What are the main factors in the decisions of the different types of owners about increasing or reducing their holdings of tax-exempt securities?

refunding and municipal bonds/tax exempt bonds

The single most important reason for the large volume of new issues of tax-exempt bonds during the 1990s has been the refunding of outstanding bonds. What facts does an issuer need and which variables must the issuer (or its financial advisor) forecast, in order to decide whether a proposed refunding is the right course of action at a given time?

Negotiated basis vs competing bid

Some of the empirical research suggests that the net interest cost to issuers is likely to be somewhat higher when a new issue is sold on a negotiated basis (the negotiations being with a single team of underwriters) than on the basis of competing bids from a number of underwriting syndicates. If this is often true, under what circumstances would it be reasonable for issuers to choose to use the negotiated process, despite the probable higher interest costs?

Tax-exempt securities question - changes that have taken place over time

Who are the principal owners of tax-exempt securities? How has this changed over time? What are the main factors in the decisions of the different types of owners about increasing or reducing their holdings of tax-exempt securities?