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Optimal Redistributive Taxation and Provision of Public Input Goods in an Economy with Outsourcing and Unemployment
Aronsson, Thomas - 2008
outsourcing by locating part of the production process abroad. Our results show that the incentive to relax the self … outsourcing. Without a direct instrument for taxing outsourcing, the government may reduce the amount of resources spent on … outsourcing by increased provision of the public input good, which is desirable in the sense that reduced outsourcing contributes …
Persistent link: https://www.econbiz.de/10012768264
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Outsourcing and Optimal Nonlinear Taxation : A Note
Aronsson, Thomas - 2008
This paper addresses outsourcing in the two-type optimal income tax model. If the government is able to control … outsourcing via a direct tax instrument, outsourcing will not affect the marginal income tax structure. In the absence of a direct … tax instrument, and under the plausible assumption that higher outsourcing increases the wage differential, the government …
Persistent link: https://www.econbiz.de/10012772230
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Optimal Debt Bias in Corporate Income Taxation
Simon, Jenny - 2015
I present a rationale for a government to discriminate between debt and equity financing when taxing corporate income. For risk-averse entrepreneurs, equity generates more surplus than debt, because it provides financing and insurance. A government seeking to extract surplus from entrepreneurs...
Persistent link: https://www.econbiz.de/10013011801
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Taxation of Foreign Profits with Heterogeneous Multinational Firms
Becker, Johannes - 2021
Recent empirical studies find that foreign direct investment (FDI) by a multinational firm is not associated with a reduction of the firm’s domestic activities. As it is often argued, this finding may imply that a country should not tax the firm’s foreign profit income since this reduces...
Persistent link: https://www.econbiz.de/10013316271
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The Optimal Graduated Minimum Wage and Social Welfare
Danziger, Eliav - 2018
This paper analyzes the effects of introducing a graduated minimum wage in a model with optimal income taxation in which a government seeks to maximize social welfare. It shows that the optimal graduated minimum wage increases social welfare by increasing the low-productivity workers'...
Persistent link: https://www.econbiz.de/10012919242
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Optimal Provision of Public Goods : A Synthesis
Kreiner, Claus Thustrup - 2009
There currently exist two competing approaches in the literature on the optimal provision of public goods. The standard approach highlights the importance of distortionary taxation and distributional concerns. The new approach neutralizes distributional concerns by adjusting the non-linear...
Persistent link: https://www.econbiz.de/10012765034
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Optimal Taxation with Rent-Seeking
Rothschild, Casey - 2014
We develop a framework for optimal taxation when agents can earn their income both in traditional activities, where private and social products coincide, and in rent-seeking activities, where private returns exceed social returns either because they involve the capture of pre-existing rents or...
Persistent link: https://www.econbiz.de/10013043234
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On the Desirability of Taxing Charitable Contributions
Blumkin, Tomer - 2007
We develop a model that allows for public goods and status signaling through charitable contributions. This model provides a unified framework in which contributions are driven both by altruism and status signaling. We use this setup to re-examine the conventional practice of rendering a...
Persistent link: https://www.econbiz.de/10012777729
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Optimal Income Taxation and Public Goods Provision in a Large Economy with Aggregate Uncertainty
Bierbrauer, Felix J. - 2009
We study a large economy model in which individuals have private information about their productive abilities and their preferences. Moreover, there is aggregate uncertainty so that the social benefits from taxation and public goods provision are a priori unknown. The analysis is based on a...
Persistent link: https://www.econbiz.de/10013158141
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On the Optimality of Joint Taxation for Non-Cooperative Couples
Meier, Volker - 2010
We present a non-cooperative model of a family's time allocation between work and a home-produced public good, and examine whether the income tax should apply to couples or individuals. While tax-induced labor supply distortions lead to overprovision of the public good, spouses' failure to...
Persistent link: https://www.econbiz.de/10013139871