Showing 1 - 10 of 13
We consider environmental regulation in a context where firms invest in abatement technology under conditions of uncertainty about subsequent abatement cost, but can subsequently adjust output in the light of true marginal abatement cost. Where an emission tax is the only available instrument,...
Persistent link: https://www.econbiz.de/10010291668
Taking a piecemeal tax reform approach to tax analysis in the spirit of Feldstein (1976), we establish a framework for assessing perturbations of the income tax schedule. It decomposes a reform into a change in tax level and a structural reform part. Focussing on the latter, the analysis singles...
Persistent link: https://www.econbiz.de/10012018119
The incidence and efficiency losses of taxes have usually been analysed in isolation from public expenditures. This negligence of the expenditure side may imply a serious misperception of the effects of marginal tax rates. The reason is that part of the marginal tax may in fact be payment for...
Persistent link: https://www.econbiz.de/10010264362
Much of the literature on externalities has considered taxes and direct regulation as alternative policy instruments. Both instruments may in practice be imperfect, reflecting informational deficiencies and other limitations. We analyse the use of taxes and regulation in combination, to control...
Persistent link: https://www.econbiz.de/10010276629
The paper discusses the tax treatment of commuting where wages and housing cost vary across locations. An income tax distorts the locational choices of agents, who dislike commuting and have preferences for place of residence Wages, housing cost and commuting cost determine how subsidising or...
Persistent link: https://www.econbiz.de/10014534319
An important question is whether VAT exemption of financial services is a desirable property or whether it is justified only due to practical and administrative necessity. This paper singles out a number of financial services for discussion of this issue in a context allowing for other taxes and...
Persistent link: https://www.econbiz.de/10011744981
Should we exempt the services of insurance companies from VAT? Addressing this issue, the paper distinguishes between insurance against a general loss of resources and a loss of a specific commodity (property insurance). There is a case for exempting the former kind of insurance, but not the...
Persistent link: https://www.econbiz.de/10011794169
Unions appear to have an aversion to wage disparities among their members, leading to wage compression. This paper analyses the consequences of this for income tax policy. In a two-sector general equilibrium model we highlight the tradeoff between correcting the resource misallocation created by...
Persistent link: https://www.econbiz.de/10011815847
In 1999 the EU abolished duty-free on intra-EU travel, whilst other countries still retain duty-free shopping for international travellers. We address several aspects of duty-free trade, including effects on consumption, revenue and price-setting. From a global perspective we identify the...
Persistent link: https://www.econbiz.de/10010315071
When a poublic good ist excludable it is possible to charge individuals for using the good. We study the role of prices onexcludable public goods using an extension of the Stiglitz-Sternversion of the Mirrlees optimal income tax model. Our discussionincludes both the case where the public good...
Persistent link: https://www.econbiz.de/10010315142