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Georges Casamatta, and Helmuth Cremer

vol. 257, n. 112714, December 2025, revised June 10, 2026

We analyze the optimal combination of direct and indirect taxes in the presence of tax avoidance. Proportional commodity taxes remain part of the optimal tax structure when avoidance is possible, even when the Atkinson–Stiglitz conditions hold. Taxing consumption, despite avoidance, enhances the...

Thanh-Viet Nguyen, and Michel Simioni

vol. 88, December 2025, pp. 1266–1283

Vietnam has experienced remarkable economic growth over last three decades, but the country’s development fundamentals remain fragile. This growth has been primarily driven by an expanding labor force and capital deepening, with less emphasis on productivity growth. In this article, we aim to...

Lei Fan, Catherine Molho, Florian van Leeuwen, Hirokata Imada, and Joshua Tybur

2025, p. 1–15

Anger and disgust often underlie responses to social transgressions, yet their links to aggressive punishments have been primarily studied in Western populations. Across two studies sampling from Japan, we tested a socio-functional account of these two other-condemning moral emotions, which...

David Bardey, Philippe De Donder, and Vera Zaporozhets

vol. 4, December 2025

This survey examines the economic literature on the incentives that shape both the use and the development of diagnostic tests, with a particular focus on companion (biomarker) tests central to precision medicine. Misdiagnosis, underdiagnosis, and overdiagnosis represent a substantial global...

Milo Bianchi, and Philippe Jehiel

vol. 19, December 2025, revised June 10, 2026, pp. 735–755

We analyze bubbles and crashes in a model in which some investors are partially sophisticated. While the expectations of such investors are endogenously determined in equilibrium, these are based on a coarse understanding of the market dynamics. We highlight how such investors may endogenously...

Olivier Faugeras

vol. 54, n. 5, 2025, p. 121–159

Motivated by finding a way to deal with Compositional Data (CoDa) with or without zeroes in a unified way, we build upon the previous projective geometry viewpoint of Faugeras (2023) and use the tools provided by the exterior product and Grassmann’s algebra. These allow to represent higher...

Catherine Molho, and Linh Vu

vol. 66, n. 102107, December 2025

Altruistic decisions are central to civic engagement and humanitarian efforts. However, altruistic behavior is often context-dependent rather than consistent—the same individuals who act generously in one situation may behave selfishly in another. Here, we review research on this phenomenon, which...

Jean Tirole

Subramanian Rangan (ed.), Oxford University Press, part I, chapter 2, 2025, pp. 59–70

Any scientific discipline—any theory, formal or informal—rests on assumptions. These assumptions matter, and in the case of social sciences, they influence our vision of society and our policy recommendations. This chapter reviews and comments on assumptions most commonly made by economists—...

Eran Shmaya, and Bruno Ziliotto

vol. 63, n. 3, 2025

We consider a mean-field game model in which the cost functions depend on a fixed parameter referred to as the “state,” which remains unknown to the players. Players acquire information about the state through private signals received during the course of the game. We derive a mean-field system...

André Grimaud, and Luc Rougé

vol. 29, n. e98, 2025, revised June 10, 2026, pp. 1–30

Technical progress is considered a key element in the fight against climate change. It may take the form of technological breakthroughs, that is, shocks that induce significant leaps in the stock of knowledge. We use an endogenous growth framework with directed technical change to analyze the...