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concerning the health effects of the consumption of fat and of healthy goods. The level of the fat tax is determined through ….A fraction of the fat tax proceeds is "earmarked" to reduce health insurance premiums while the remaining fraction finances a … welfare, anticipating the induced political equilibrium. We show that the fat tax in the political equilibrium is always lower …
Persistent link: https://www.econbiz.de/10013015020
This paper analyzes educational choices and political support for subsidies to higher education in the presence of a time-consistency problem in income redistribution. There may be political support for so generous subsidization that it motivates the median voter to obtain higher education. As a...
Persistent link: https://www.econbiz.de/10012776006
This paper develops a micro-founded city systems model with an endogenous number of cities to explore whether local governments establish the optimal city size when production processes involve environmental pollution. Our analysis delivers two key insights. First, if an optimal scheme to...
Persistent link: https://www.econbiz.de/10012925517
This paper deals with one of the main empirical problems associated with the rational addiction theory, namely that its …
Persistent link: https://www.econbiz.de/10012843165
they are really the most challenging ones for conventional theory. New developments are emerging both at the theoretical …
Persistent link: https://www.econbiz.de/10013316853
Because of Time Inconsistency considerations, policymakers underestimate the drawbacks of wage rigidity as a redistributive tool. Consequently, they redistribute inefficiently income from high to low skilled workers. They typically implement too much wage rigidity whereas other means (in...
Persistent link: https://www.econbiz.de/10013317603
Incomplete information is a commitment device for time consistency problems. In the context of time consistent labor income taxation privacy can lead to a Pareto superior outcome and increases the effectiveness of public education as a second best policy
Persistent link: https://www.econbiz.de/10014163655
This paper presents the first longitudinal estimates of the effect of work-related training on labor market outcomes in Switzerland. Using a novel dataset that links official census data on adult education to longitudinal register data on labor market outcomes, we apply a regression-adjusted...
Persistent link: https://www.econbiz.de/10014244243
Barriers to outsourcing that are being currently implemented in the US effectively tax its companies who "export" jobs … oligopolistic context. We find that while an outsourcing tax favors domestic workers by causing firms to switch to a greater use of … effects, which inform us about the conditions under which such a tax achieves its stated objective. Next, we consider the …
Persistent link: https://www.econbiz.de/10013131419
We examine ways of funding higher education, comparing upfront tuition fees with graduate taxes. The tax dominates, as … endogenized. We show that graduate taxes reduce work incentives but provide incentives to improve teaching quality. Yet if tax … allocated the revenue generated by its own alumni. In addition, we demonstrate how a budget-balancing graduate tax would …
Persistent link: https://www.econbiz.de/10013135633