This paper analyzes, in a public finance context, how the optimal use of the inflation and the consumption tax is … by 1992. Two main questions are addressed: first, how the constraint of having to share a common inflation tax, in order … to preserve fixed-exchange rates, influences the optimal policy decisions concerning the inflation tax; secondly, how the …

impact of the terms of trade shift on the economy’s income distribution depends crucially on the use of the tax revenues. …

Businesses which seek the location that offers the highest profitability are likely to consider tax incentives and the … vulnerable to future tax increases or denial of government services. Fear of time inconsistency will lower expected business … tax abatement scheme which provides a subsidy (funded by a capital income tax) equivalent to moving/setup costs …