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Optimal nonlinear income taxation with productive government expenditure

Lai, Ching-Chong; Liao, Chih-Hsing - In: International Review of Economics & Finance 22 (2012) 1, pp. 66-77

This paper develops an endogenous growth model with a production externality and nonlinear income taxation, and uses it to examine how the fiscal authority devises its nonlinear tax structure from the viewpoint of welfare maximization. It is found that, in the Barro (1990) model, Pareto...

Persistent link: https://www.econbiz.de/10010573110

A Positive Theory of Income Taxation

Carbonell-Nicolau, Oriol - In: Contributions to Theoretical Economics 9 (2009) 1, pp. 1553-1553

We explore the consequences of electoral competition for nonlinear income taxation. Our model is a dynamic version of the standard two-party electoral competition model adapted to nonlinear income taxation. The theory has a number of desirable features. First, equilibria always exist, even...

Persistent link: https://www.econbiz.de/10005046400

The Objections against Workfare Revised

Lohse, Tim - In: Review of Economics 65 (2014) 1, pp. 95-118

Opponents of work obligations in return for transfer payments argue that workfare can crowd out private sector work …, that workfare harms the welfare of the poor and thereby reduces a society’s welfare in general. This paper analyzes these … objections against workfare in a discrete optimal income tax model. Workfare productivity emerges to be the crucial determinant …

Persistent link: https://www.econbiz.de/10011198678

Commodity Tax Competition and Tax Coordination Under Destination and Origin Principles

Lockwood, Ben - C.E.P.R. Discussion Papers - 2000

This paper proposes a general framework for analysing commodity tax competition under destination and origin principles, based on three possible tax spillovers: the consumer price spillover, the producer price/terms of trade spillover, and rent spillovers. A model is presented which can be...

Persistent link: https://www.econbiz.de/10005504270

Optimal Labour Taxation and Search

Boone, Jan; Bovenberg, A Lans - C.E.P.R. Discussion Papers - 2001

This Paper explores the optimal role of the tax system in alleviating labour-market imperfections and raising revenue. For this purpose, the standard search model of the labour market is extended by introducing scarce entrepreneurial talent and arbitrage between the supply and demand. We study...

Persistent link: https://www.econbiz.de/10005504773

Should a Carbon Tax be Differentiated Across Sectors?

Hoel, Michael - C.E.P.R. Discussion Papers - 1994

If some, but not all, countries are cooperating to reduce CO2 emissions, it can be argued that: A high carbon tax on carbon-intensive tradable sectors in the cooperating countries will reduce the production of goods from these sectors, and therefore CO2 emissions, in those countries. This will...

Persistent link: https://www.econbiz.de/10005498029

Intergenerational Transfer of Human Capital and Optimal Education Policy

Cremer, Helmuth; Pestieau, Pierre - C.E.P.R. Discussion Papers - 2004

This Paper studies the design of education policies in a setting of successive generations with heterogeneous individuals (high and low earning ability). Parents’ investment in education is motivated by warm-glow altruism and determines the probability that a child has high ability. Education...

Persistent link: https://www.econbiz.de/10005498169

Estate Taxation with Altruism Heterogeneity

Farhi, Emmanuel; Werning, Iván - National Bureau of Economic Research (NBER) - 2013

We develop a theory of optimal estate taxation in a model where bequest inequality is driven by differences in parental altruism. We show that a wide range of results are possible, from positive taxes to subsidies, depending on redistributive objectives implicit in the cardinal specification of...

Persistent link: https://www.econbiz.de/10011133508

Asset Prices and Efficiency in a Krebs Economy

Toda, Alexis Akira - In: Review of Economic Dynamics

I study the asset pricing implications and the efficiency of a tractable dynamic stochastic general equilibrium model with heterogeneous agents and incomplete markets along the lines of Krebs [Krebs, T., 2003. Human Capital Risk and Economic Growth. Quarterly Journal of Economics 118(2),...

Persistent link: https://www.econbiz.de/10011103254

A Variational Approach to the Analysis of Tax Systems

Golosov, Mikhail; Tsyvinski, Aleh; Werquin, Nicolas - National Bureau of Economic Research (NBER) - 2014

We develop a general method to study the effects of non-linear taxation in dynamic settings using variational arguments. We first derive general theoretical formulas that characterize the welfare effects of local tax reforms and, in particular, the optimal tax system, potentially restricted...

Persistent link: https://www.econbiz.de/10011103506