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AEJ Micro publishes papers focusing on microeconomic theory, industrial organization, and the microeconomic aspects of international trade, political economy, and finance. The journal will publish theoretical work as well as both empirical and experimental work with a theoretical framework.

Service providers (aka executives) to partnerships and to corporations confront a number of choices as to how their compensatory arrangement may be structured and the tax consequences thereof. In the simplest case, an individual may render services to an enterprise in return for cash payments over the period of service. In this non-equity setting, the issue is straightforward and non-controversial. The service provider is treated as receiving ordinary income for services rendered. The return on his or her expenditure of human capital is taxed at progressive rates. Once the relationship between the service provider and the enterprise becomes more complicated through the service provider's receipt of an equity interest in the enterprise, the tax treatment of the return becomes more complex. If the service provider receives an equity interest in return for services, the issue of whether the receipt of, and return on, the equity interest is attributable to human capital or invested capital is confronted. A tension arises between conceptualizing the receipt of and return on an equity interest and the economic enhancement which it generates as a return on human capital, generating ordinary income, or as a return on invested capital, which in certain settings may be taxed preferentially as capital gain. In the corporate context, stock in the corporation may be issued in return for the rendition of future services. It may be transferred outright, i.e., free and clear, or be restricted, i.e., conditioned upon the rendition of services for a fixed period of time. Various tax issues are confronted—when is the income taken into account, what amount is taken into account, what is the character of the income from such receipt, and whether and to what extent its compensatory origin must be segregated from any subsequent appreciation in the equity interest. Subchapter K raises similar issues in the services-for-equity context regarding partnerships, but the tax consequences arise under a single tax, rather than double tax, ...

Dans cette note, nous donnons un exemple élémentaire avec une fonction d'utilité concave où la règle d'épargne essentiellement unique et consistante est discontinue ; une telle règle d'épargne ne peut pas survenir avec une fonction d'escompte exponentielle.

There is ample evidence that emotions affect performance. Positive emotions can improve performance, while negative ones can diminish it. For example, the fears induced by the possibility of failure or of negative evaluations have physiological consequences (shaking, loss of concentration) that may impair performance in sports, on stage, or at school. There is also ample evidence that individuals have distorted recollection of past events and distorted attributions of the causes of success or failure. Recollection of good events or successes is typically easier than recollection of bad ones or failures. Successes tend to be attributed to intrinsic aptitudes or effort, while failures are attributed to bad luck. In addition, these attributions are often reversed when judging the performance of others. The objective of this paper is to incorporate the phenomenon that emotions affect performance into an otherwise standard decision theoretic model and show that in a world where performance depends on emotions, biases in information processing enhance welfare.