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In this paper we investigate the effects of tax competition in a simple endogenous growth model with elastic labor supply. Our analysis focuses on two issues. First, we show that all taxes, i.e. on capital, labor, and consumption, are harmful for growth. Second, we derive the optimal tax policy....
Persistent link: https://www.econbiz.de/10013316505
We utilise repeated cross sections of micro data from several countries, available from the Luxembourg Income Study, LIS, to estimate labour supply elasticities, both at the intensive and extensive margin. The benefit of the data is that it spans over four decades and includes a large number of...
Persistent link: https://www.econbiz.de/10013045921
In the aftermath of elections or ballots, the legitimacy of the result is regularly debated if voter turnout was considered to be low. Hence, discussions about legal reforms to increase turnout are common in most democracies. We analyze the impact of a very small change in voting costs on voter...
Persistent link: https://www.econbiz.de/10012970421
inverse-elasticity rule. We also verify the necessary and sufficient condition for the optimal solution to exhibit uniform …
Persistent link: https://www.econbiz.de/10012915564
a vital area of economic research. This paper adds to this literature by estimating the tax price elasticity of … elasticity estimate of –0.51 and an income elasticity estimate of 0.13, whereas OLS produces estimates that conflict with …
Persistent link: https://www.econbiz.de/10013142798
our empirical example we find that income-shifting accounts for over two thirds of the overall elasticity of taxable … burden compared to the standard model in which the overall elasticity defines the welfare loss. However, in addition to …
Persistent link: https://www.econbiz.de/10013049207
bracketed in the interval [0.05, 0.80], with the (un-weighted) mean elasticity across the various methods ranging from 0.26 to 0 …
Persistent link: https://www.econbiz.de/10013051276
Quantitative results from a large class of international trade models depend critically on the elasticity of trade with … respect to trade frictions. We develop a simulated method of moments estimator to estimate this elasticity from disaggregate …-flow data for 123 countries in the year 2004 yields a trade elasticity of roughly four, nearly fifty percent lower than Eaton …
Persistent link: https://www.econbiz.de/10013129252
-cyclical discretionary fiscal policy in the region. Our detailed elasticity estimates can give some orientation on how to reach necessary …
Persistent link: https://www.econbiz.de/10013130748
This paper investigates how tax revenue elasticities develop with respect to their tax base and analyses the specific impact of the business cycle. The main novelty of the paper is to use revenue data net of discretionary tax measures. Based on an EU country panel for the period 2001-13, we...
Persistent link: https://www.econbiz.de/10013000817