We develop models of optimal linear and non-linear income taxation with endogenous human capital formation to explore optimal education subsidies. Optimal subsidies on education ensure efficiency in human capital accumulation and thus play an important role in alleviating the tax distortions on...

Progressive income taxes moderate wage demands by trade unions and thereby reduce unemployment, but alsothey reduce incentives to acquire skills and lower productivity of workers. The optimal response of the governmentto this dilemma is to choose a system of progressive taxes and to (partly)...

The main goal of this study is two-fold: (1) to provide a general overview of thecontributions to the literature on the informal sector, with a special focus on the PublicChoice approach; and (2) to compare these contributions across two institutionallydifferent types of countries: developed and...

What drives stated preferences about the number of foreigners? Is it self-interest as stressed by the political economy of immigration? Does social interaction affect this preference or is the immigration preference completely in line with the preference for the aggregate population size? In...

A review is given of the use of laboratory experiments in the Public Choice literature. A distinction is made in experiments on public goods, participation games, rent-seeking and lobbying, and spatial voting.