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Do income taxes levied at a state or regional level affect the after-tax distribution of income? Or do workers merely move between regions, causing pre-tax wages to adjust? This question is relevant both in across states in the United States, and across countries within the European Union. Using...
Persistent link: https://www.econbiz.de/10004970062
The analysis provides a new explanation for two widespread problems concerning European unemployment policy: the disappointingly small effect of many past reform measures on unemployment; and the political difficulties in implementing more extensive reform programmes. We argue that the heart of...
Persistent link: https://www.econbiz.de/10005123912
usually taken as an argument against the necessity of government intervention through Pigouvian taxation in order to correct … be prevented from always trying to exploit all gains from trade, may in fact be solved by taxation. Thus, in our … framework Coasean bargaining is not a substitute for Pigouvian taxation; instead it is the very reason for government …
Persistent link: https://www.econbiz.de/10005661662
This Paper analyses the optimal timing of taxes on capital income. We show that the celebrated result that taxes should front-loaded with an initially high tax followed by a discrete jump to the steady state is knife-edge, hinging on capital having a constant depreciation rate. An empirically...
Persistent link: https://www.econbiz.de/10005504592
publicly provided private good. Asymmetric capital taxation arises at equilibrium leading to a distortion on the international …
Persistent link: https://www.econbiz.de/10005656387
The 2008 financial crisis is the worst economic crisis since the Great Depression of 1929. It has been characterised by a housing bubble in a context of rapid credit expansion, high risk-taking and exacerbated financial leverage, leading to deleveraging and credit crunch when the bubble burst....
Persistent link: https://www.econbiz.de/10008468635
Taxation is only sustainable if the general public complies with it. This observation is uncontroversial with tax … with taxation, obtaining predictions that in some cases point to a re-interpretation of the theoretical constructions of …
Persistent link: https://www.econbiz.de/10005114245
This paper assesses the effects of applying VAT or a sales tax on (intermediate or final) sales of the financial sector. It uses a CGE Model calibrated for a small open economy. It highlights the differentiated sectoral and redistributional effects of these taxes and shows the importance of the...
Persistent link: https://www.econbiz.de/10011084284
, evaluating redistributive equilibria from an allocative point of view. It studies the problem of optimal redistributive taxation … redistribution results in more post-tax inequality. In general, optimal taxation will either imply that the redistribution paradox is …
Persistent link: https://www.econbiz.de/10005067443
If some, but not all, countries are cooperating to reduce CO2 emissions, it can be argued that: A high carbon tax on carbon-intensive tradable sectors in the cooperating countries will reduce the production of goods from these sectors, and therefore CO2 emissions, in those countries. This will...
Persistent link: https://www.econbiz.de/10005498029