Showing 1 - 10 of 46
We re-examine the optimality of tax smoothing from the point of view of frictional labor markets. Our central result is that whether or not this cornerstone optimal fiscal policy prescription carries over to an environment with labor market frictions depends crucially on the cyclical nature of...
Persistent link: https://www.econbiz.de/10005368229
investment and growth, in practice growth effects of taxation are negligible. This paper provides evidence in support of this …
Persistent link: https://www.econbiz.de/10005372534
between taxes and spending, and (ii) government size. These are tested using data from u.s. states from 1950 to 1990. We find … evidence that greater political competition generally encourages bigger government, the Democratic Party is associated with … bigger government, and state governments which "tax first, spend later" are more likely to be large. Other factors related to …
Persistent link: https://www.econbiz.de/10005372562
his lifetime. Second, the government is allowed to tax accidental bequests at a separate rate from ordinary capital income …
Persistent link: https://www.econbiz.de/10009395279
create a motive for the government to use age-dependent labor income taxes. If the government cannot condition taxes on age …
Persistent link: https://www.econbiz.de/10009421363
In a two-country world with perfect capital markets and no taxes, the existence of purchasing power parity is fully consistent with interest party and the equalization of real interest rates across countries. In such a world, changes in anticipated inflation in either country will not alter the...
Persistent link: https://www.econbiz.de/10005712659
The informal sector, which produces legal goods but does not comply with government regulations, is a functioning part …
Persistent link: https://www.econbiz.de/10005712671
A growing body of work--both theoretical and empirical--has emphasized that unionization may be better understood as a tax on capital rather than a tax on labor. Under this "new" view, unionization unambiguously lowers investment. Using data on union certification elections, we estimate the...
Persistent link: https://www.econbiz.de/10005720975
the data. These models generally imply: (1) that economic growth must fall with the share of government expenditures in … may even increase, with the share of government expenditures in output across countries. Moreover, discrete permanent … not government expenditures are thought to be productive, and better conform to available empirical evidence. …
Persistent link: https://www.econbiz.de/10005721025
Using the 2003 reduction in dividend tax rates to identify an exogenous change in the after-tax value of dividends to shareholders, we test whether stock holdings among company executives is an important determinant of payout policy. We have three primary findings. First, we find that when top...
Persistent link: https://www.econbiz.de/10005721028