This paper provides evidence of efficient taxation of groups with heterogeneous levels of ‘tax morale'. We set up an optimal income tax model where high tax morale implies a high subjective cost of evading taxes. The model predicts that ‘nice guys finish last': groups with higher tax morale...

We analyse the voting pattern in the June 23rd referendum on the continued participation of the United Kingdom in the European Union and evaluate the reasons for the results. We find that regions where GDP per capita is low, a high proportion of people have low education, a high proportion is...

This paper analyzes the effectiveness of the tax and transfer systems in the European Union and the US to act as an automatic stabilizer in the current economic crisis. We find that automatic stabilizers absorb 38 per cent of a proportional income shock in the EU, compared to 32 per cent in the...