In this paper, we suggerst that one plausible view is to keep us responsible for the parts of the consequences that are independent of the factors beyond our control. Within the framework of a first best taxation problem, we present and characterise a redistributive mechanism that both satisfies...

This paper studies whether a group of countries can gain from harmonizing their capital income taxes if the rest of the world does not follow suit. It is shown that cooperation among the subgroup of countries is beneficial if tax rates in the initial fully non-cooperative Nash equilibrium are...

The literature on the average and marginal cost of public funds and the average and marginal excess burden is presently a very rich one. A problem in this literature, is that a whole range of alternative measures are interpreted as representing the cost from collecting tax revenues. This paper...

In the optimal tax problem, the maximand is quasi-convex in consumer prices. In such a case, there exists no separating hyperplane between the upper contour set of the maximand and the constraint set. Therefore, the second order properties of optimal tax problems are somewhat non-standard...

Triest (1990) argues that measuring the marginal cost of public funds (MCF) and the marginal excess burden (MEB) requires equivalent variation measures: MCF should be evaluated at consumer prices while MEB requires the use of producer prices. This paper follows up on Triest's argument by showing...

Two jurisdictions compete to capture the rents of a large multinational enterprise (MNE) which invests locally and which is partly owned by local investors. The MNE contributes to local welfare by tax payments and dividends and it has private information about the efficiency of the operations in...

The present paper expands this model by including the intrinsic value of education as a motivation behind getting education. I find that the argument in favour of dual income taxation is strengthened. A comprehensive proportional income tax works as a tax subsidy on human capital investments,...