The study analyses the capital income taxation of foreign-source income, where residence and source criteria are the two well-known tax criteria. The study presents a globally optimal tax rule which equalizes the shadow price of capital in the countries and which is assumed to be a weighted...

This is an evaluation study which examines the financing process through which Finnish enterprises apply and receive business subsidies from the central government. It examines comprehensively the three entities involved when this type of state aid is distributed in Finland, namely the applicant...

Applied general equilibrium models have become a standard tool for the analysis of structural policies in many countries and international research organisations. Their use has been prompted by both developments in economics, but also on the growing need for quantitative policy analysis. The...

The study attempts to apply William Niskanen's (1971) theory of budget maximising bureaucrats to the business subsidies policy implemented in Finland, by one of the major distributor of subsidies to firms, the ministry of Trade and Industry (KTM). The empirical analysis is based on records of 15...

This paper investigates the employment effects of changes in the structure of taxation and in the tax progression. The contribution is to add endogenous determination of working hours into a union wage setting model. Thus employment effects of any changes in taxation are derived as a labour...

The study reconsiders the effects of tax progression in imperfectly competitive labour markets. Allowing for the individual supply of working hours, we show that the results derived in the standard model of decentralised wage bargaining do not hold if the wage setting is centralised or highly...

This paper provides new evidence about the evolution of top incomes in Finland over the period 1966 - 2002. Using micro data we construct estimates of shares of top income groups. The paper shows how the proportion of income earned by the very richest one per cent has changed over time. It shows...

In the paper an index number measuring inefficiency of taxation is introduced which is based on an economy-wide generalisation of the input distance function. Related concepts are an input based quantity index, the index of real endowment, and a productivity index indicating effectiveness of the...

The Finnish economy has experienced an incredible shock in the first part of the 1990s. The 12 per cent decline in Finland?s GDP between 1991 and 1993 led to a sharp rise in unemployment from 3.5 per cent in 1990 to 18 per cent in 1993. The credibility of the Finnish economic policy has improved...