This paper analyses child labour participation and its key determinants using data sets from Peru and Pakistan. The results include tests of the `Luxury' and `Substitution' hypotheses that play key roles in recent studies on child labour and child schooling. The results reject both hypotheses in...

This paper provides a framework for the simultaneous calculation of optimal commodity and income taxes in a federal framework with demogrants. The optimal income tax rate is shown to depend on a range of demographic and economic variables. Alternative models of fiscal federalism are proposed,...