Taxpayers respond to incentives

Economists Lee Ohanian. Andrea Raffo, and Richard Rogerson have a new paper on "Long-Term Changes in Labor Supply and Taxes: Evidence from OECD Countries, 1956-2004." They conclude

taxes can account for much of the variation in hours worked both over time and across countries.

For another point of view, see Alberto Alesina, Edward L. Glaeser, and Bruce Sacerdote, who believe that regulations pushed by unions, not taxes, are the reason Europeans work fewer hours than Americans.

Life at the Top

From the new WSJ blog on the "lives and culture of the wealthy."

Theater Recommendation

I am a fan of musical theater, and there is no show I have enjoyed more in recent years than Jersey Boys, which my family and I saw yesterday. Whether or not you can make it to New York for the show, try the recording, which has entertained my kids for hours in the car.

Okay, now back to economics.