Showing 1 - 10 of 23
We derive a general optimal income tax formula when individuals respond along both the intensive and extensive margins and when income effects can prevail. Individuals are heterogeneous across two dimensions: their skill and their disutility of participation. Preferences over consumption and...
Persistent link: https://www.econbiz.de/10008673437
Individuals with heterogeneous incomes occupy a territory divided into zones with unequal levels of amenities. Using the concept of land rent à la Ricardo, we propose a model determining the land rent in the different zones as well as the distribution of individuals across them. A land tax...
Persistent link: https://www.econbiz.de/10011075060
. Public spending has two possible allocations: a direct subsidy to immobile households or a wage subsidy to mobile firms. We … show that firms receive a lower net tax subsidy in the high-productivity country than in the low productivity one. Despite …-best optimum requires an increase in the subsidy to households in both countries when the economies are weakly integrated or the …
Persistent link: https://www.econbiz.de/10009493521
We develop a methodology to sign output distortions in the random participation framework. We apply our method to monopoly nonlinear pricing problem, to the regulatory monopoly problem and mainly to the optimal income tax problem. In the latter framework, individuals are heterogeneous across two...
Persistent link: https://www.econbiz.de/10010533745
The current unemployment insurance and employment protection legislation were set up in an economic environment in which relationships between workers and firms were typically lon-lastingand stable. The increasing globalisation of the economy and the rapid technological and organisational...
Persistent link: https://www.econbiz.de/10008505479
The effects of three reforms of the Belgian old-age pension system were examined on retirement behaviour, government budget and income distribution of the old-age retired. On the basis of a large administrative micro-dataset used to estimate and simulate a discrete-time hazard model we found...
Persistent link: https://www.econbiz.de/10004984738
The paper considers a model of a federation with two heterogeneous regions that try to attract the capital by competing in capital income taxes and public investment that enhance the productivity of capital. The regions’ choices determine the allocation of capital across the regions and their...
Persistent link: https://www.econbiz.de/10004984771
Revenue sharing can be used to discourage low tax regions from competing for capital and firms with high tax regions. However, with heterogeneous regions, revenue sharing involves net transfers across regions and creates a “moral-hazard” problem - that is, regions may want to invest less in...
Persistent link: https://www.econbiz.de/10004984781
The European economic integration leads to increasing mobility of factors, thereby threatening the stability of social transfer programs. This paper investigates the possibility to achieve by means of voluntary matching grants both the optimal allocation of factors and the optimal level of...
Persistent link: https://www.econbiz.de/10004984851
We investigate how continental European unemployment can be reduced without reducing unemployment benefits and without reducing the net income of low-wage earners. Lower unemployment replacement rates reduce unemployment, the net wage and unemployment benefits. A lower tax on labour increases...
Persistent link: https://www.econbiz.de/10004984874