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Financing Education Using Optimal Redistributive Taxation

Brett, Craig; Weymark, John A. - Vanderbilt University Department of Economics - 2000

In this article, the joint use of an income tax and public provision of education as instruments to achieve the government's distributional objectives are considered. Individuals differ in innate labour productivity and in aptitude to acquire skills through education. Actual labour productivity...

Persistent link: https://www.econbiz.de/10005034010

Tax Competition Reconsidered

Dhillon, Amrita; Wooders, Myrna H.; Zissimos, Ben - Vanderbilt University Department of Economics - 2006

In a classic model of tax competition, we show that the level of public good provision and taxation in a decentralized equilibrium can be efficient or inefficient with either too much, or too little public good provision. The key is whether there exists a unilateral incentive to deviate from the...

Persistent link: https://www.econbiz.de/10005585305

The Role of Government in the Credit Market

Eden, Benjamin - Vanderbilt University Department of Economics - 2009

The paper assumes a government advantage in collecting income contingent payments and develop a proposal for a government loan program that is an integral part of the tax system. The focus is on administrative costs and the difference between the collection technologies available to the public...

Persistent link: https://www.econbiz.de/10005013875

Comparative Statics of Optimal Nonlinear Income Taxation in the Presence of a Publicly Provided Input

Brett, Craig; Weymark, John A. - Vanderbilt University Department of Economics - 2009

Comparative static properties of the solution to an optimal nonlinear income tax problem are provided for a model in which the government both designs a redistributive income tax schedule and provides a public input into a nonlinear production process. These assumptions imply that wage rates are...

Persistent link: https://www.econbiz.de/10005013876

How Optimal Nonlinear Income Taxes Change When the Distribution of the Population Changes

Brett, Craig; Weymark, John A. - Vanderbilt University Department of Economics - 2010

The impacts of changing the number of individuals of a particular skill level on the solutions to two versions of the finite population optimal nonlinear income tax problem are investigated. In one version, preferences are quasilinear-in-leisure. For this version, it is shown that it is possible...

Persistent link: https://www.econbiz.de/10008692912

Public Good Differentiation and the Intensity of Tax Competition

Zissimos, Ben; Wooders, Myrna - Vanderbilt University Department of Economics - 2003

We show that, in a setting where tax competition promotes efficiency, variation in the extent to which firms can use … of efficiency. In this environment, a `minimum tax' counters the reduction in the intensity of tax competition, thereby … enhancing efficiency. `Split-the-difference' tax harmonization also potentially enhances efficiency but would not be agreed upon …

Persistent link: https://www.econbiz.de/10005752723

Relaxing Tax Competition through Public Good Differentiation

Zissimos, Ben; Wooders, Myrna H. - Vanderbilt University Department of Economics - 2006

. We show that, in a setting where tax competition promotes efficiency, governments are able to use this variation to relax … the forces of tax competition, which reduces efficiency. In this environment, a `minimum tax' counters the relaxation of … tax competition, thereby enhancing efficiency, and `split the difference' tax harmonization also enhances efficiency. …

Persistent link: https://www.econbiz.de/10005752730

Public Good Provision and the Comparative Statics of Optimal Nonlinear Income Taxation

Brett, Craig; Weymark, John A. - Vanderbilt University Department of Economics - 2004

Comparative static properties of the solution to an optimal nonlinear income tax problem are provided for a model in which the government both designs an income tax schedule for redistributive purposes and provides a public good optimally. There are two types of individuals, distinguished by...

Persistent link: https://www.econbiz.de/10005585291

The Friedman Rule in an Overlapping Generations Model: Social Security in Reverse

Eden, Benjamin - Vanderbilt University Department of Economics - 2007

The welfare gains from adopting a zero nominal interest policy depend on the implementation details. Here I focus on a government loan program that crowds out lending and borrowing and other money substitutes. Since money can be costlessly created the resources spent on creating money...

Persistent link: https://www.econbiz.de/10005585318

Shadow Prices for a Nonconvex Public Technology in the Presence of Private Constant Returns

Weymark, John A. - Vanderbilt University Department of Economics - 2005

Diamond and Mirrlees have shown that public sector shadow prices should be set equal to the private producer prices in some circumstances even if taxes are not optimal when the public production technology is convex and some of the private sector firms have constant-returns-to-scale...

Persistent link: https://www.econbiz.de/10005585323