We analyse welfare effects of the interactions between the tax system and inflation in Poland and in Ukraine, using the framework developed by Feldstein (1997, 1999). This approach stresses the fact that inflation increases distortions created by the tax system, in particular distortions to...

Uno de los aspectos más controvertidos del debate en el Congreso de la Nación sobre las prórrogas impositivas es el que se refiere al aumento del mínimo no imponible del Impuesto a las Ganancias. Mientras que el Poder Ejecutivo Nacional elevó un proyecto de ley que mantiene el mínimo...

Economic integration in Europe has not led to a ‘race to the bottom’ regarding corporate income taxes. This paper documents trends in the foreign ownership of companies in Europe and it examines whether foreign ownership has exerted a positive influence on corporate income tax levels. Using...

Meeting government revenue needs without inhibiting private sector development is a key challenge of tax policy during the transition from the socialist system. The paper explores issues in the design of tax bases and tax structures in the transition and argues that transition economies would...

Phased-in tax reductions are a common feature of tax legislation. This paper uses a dynamic general equilibrium model to quantify the effects of delaying tax cuts. According to the analysis of the model, the phased-in tax cuts of the 2001 tax law substantially reduced employment, output, and...

In a recent edition of Perspectives on Politics, Larry Bartels examines the high levels of support for tax cuts signed into law by President Bush in 2001. In so doing, he characterizes the opinions of “ordinary people” as being based on “simple-minded and sometimes misguided considerations...

Tax Burden, defined as the ratio of total tax revenues over personal income, is prominently used to summarize state tax policy. We analyze the empirical relationship between changes in Tax Burden and changes in state tax policy from 1987 to 2000 – as measured by states’ own forecasts of the...

This paper studies the effects of distortionary taxes and public investment in an endogenous growth OLG model with knowledge transmission. Fiscal policy affects growth in two respects: First, work time reacts to variations of prospective tax rates and modifies knowledge formation; second, public...

The object of this paper is to develop an Early Warning System of Macro Vulnerability for several Latin American countries based on previous work of Kaminsky, Lizondo and Reinhart (1997) and Kaminsky (1998). We build a composite leading indicator that signals macroeconomic vulnerability, showing...

This paper assesses empirically whether global risk aversion (GRA) and some if its determinants (US economic growth and the US long term interest rates) explain developments in Latin American sovereign spreads. We find that GRA is significant and positively related to Latin American sovereign...