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Even Small Trade Costs Restore Efficiency in Tax Competition

Becker, Johannes - 2010

We introduce transport cost of trade in products into the classical Zodrow and Mieszkowski (1986) model of capital tax competition. It turns out that even small levels of transport cost lead to a complete breakdown of the seminal result, the underprovision of public goods. Instead, there is a...

Persistent link: https://www.econbiz.de/10013136648

Beyond the DSGE Straitjacket

Pesaran, M. Hashem - 2011

Academic macroeconomics and the research department of central banks have come to be dominated by Dynamic, Stochastic, General Equilibrium (DSGE) models based on micro-foundations of optimising representative agents with rational expectations. We argue that the dominance of this particular sort...

Persistent link: https://www.econbiz.de/10013125067

Taxation of Firms with Unknown Mobility

Becker, Johannes - 2012

We analyze the optimal tax choices of a revenue-maximizing government that levies taxes from firms of which the true degree of mobility is ex ante unknown. Differential tax treatment of immobile and mobile firms is ruled out, but the government may learn from the firms' location responses to...

Persistent link: https://www.econbiz.de/10013097107

From Optimal Tax Theory to Applied Tax Policy

Jacobs, Bas - 2013

This paper aims to provide a perspective on the ideal tax system using insights from optimal-tax theory supplemented …

Persistent link: https://www.econbiz.de/10013084904

Second-Best Income Taxation with Endogenous Human Capital and Borrowing Constraints

Jacobs, Bas - 2013

We formulate a two-period life-cycle model of saving, labor supply, and human capital investments when individuals differ in ability and initial wealth. Borrowing constraints prevent individuals to optimally smooth consumption over the life-cycle and to optimally invest in human capital. We show...

Persistent link: https://www.econbiz.de/10013084907

Optimal Linear Commodity Taxation Under Optimal Non-Linear Income Taxation

Jacobs, Bas - 2013

This paper analyzes optimal linear commodity taxes joint with non-linear income taxes. We provide optimal tax rules based on empirically observable elasticities. We demonstrate that commodities should be taxed/subsidized if doing so boosts labor supply. The critical role of commodity taxation is...

Persistent link: https://www.econbiz.de/10013085745

An Exponential Class of Dynamic Binary Choice Panel Data Models with Fixed Effects

Al-Sadoon, Majid - 2013

This paper develops a model for dynamic binary choice panel data that allows for unobserved heterogeneity to be arbitrarily correlated with covariates. The model is of the exponential type. We derive moment conditions that enable us to eliminate the unobserved heterogeneity term and at the same...

Persistent link: https://www.econbiz.de/10013089182

Double-Question Survey Measures for the Analysis of Financial Bubbles and Crashes

Pesaran, M. Hashem - 2017

belief valuations are compared and related to their price expectations. An individual respondent is presented with two sets …-valued), and another regarding his/her expectations of the future price of that asset. Responses to these two questions are then … between the agents expectations of price changes and their asset valuation. Double question surveys on equity, gold and house …

Persistent link: https://www.econbiz.de/10012963776

Aggregation in Large Dynamic Panels

Pesaran, M. Hashem - 2015

concludes with an empirical application to consumer price inflation in Germany, France and Italy, and re-examines the extent to …

Persistent link: https://www.econbiz.de/10013038262

Optimality and Diversifiability of Mean Variance and Arbitrage Pricing Portfolios

Pesaran, M. Hashem - 2009

This paper investigates the limit properties of mean-variance (mv) and arbitrage pricing (ap) trading strategies using a general dynamic factor model, as the number of assets diverge to infinity. It extends the results obtained in the literature for the exact pricing case to two other cases of...

Persistent link: https://www.econbiz.de/10013153425