Optimal debt, endogenous fertility, and human capital externalities in a model with altruistic bequests

and human capital externalities. Because of such externalities, education investment is too low and fertility is too high. While education subsidies are the conventional means to deal with these problems, we show that the optimal policy also comprises debt even when distortionary taxes are used. The reason is that debt tips the usual trade-off between children's quantity and quality in favor of the latter by increasing the bequest cost of children. The optimal debt-output ratio exceeds 10% for plausible parameterization. (C) 2002 Elsevier B.V. All rights reserved.

Delivering demons punishing wives: False imprisonment, exoricism and other matrimonial duties in a late 20th-century manslaughter case

This article provides an analysis of R v Vollmer and Others, Australia’s most famous ‘exorcism-manslaughter’ case, in which a woman, Joan Vollmer, underwent an ‘exorcism’ performed by four people, resulting in her death. We examine how taken-for-granted distinctions were collapsed during the resulting trial - distinctions between crime and punishment, exorcism and punishment, church and state, the past and the present, law and religion, reason and unreason and between a demon and a woman. We show how the defence argument for the reality of demonic possession normalized the bizarre, while simultaneously exoticizing the mundane or ‘traditional’ criminal case involving a husband defendant and a dead wife. The apparent assumption on the part of the police and the media that this case was bizarre serves to veil the fact of its relative ordinariness. A wife is killed, and the lethal punishing violence inflicted on her body downplayed, to be reinterpreted in the legal context as somehow a consequence of something she herself precipitated. Our analysis of the Vollmer case provides a novel perspective on that always intriguing conundrum of crime and punishment.

Second-best public debt with human capital externalities

This paper studies optinnal public debt in a dynastic model with human capital externalities that cause human capital investment (fertility) to be below (above) its socially optimal level. By reducing fertility and raising human capital investment, the optimal debt can exceed 10% of output for plausible parameterizations.