This article aims at understanding the interplay between pension schemes and tax instruments. The model features extensive labor supply in a stationary environment with overlapping generations and perfect financial markets. Compared with the reference case of a pure taxation economy, we find...

Indirect taxes contribute to a sizeable part of government revenues around theworld. Typically there are a few different tax rates, and the goods are partitionedinto classes associated with each rate. The present paper studies how to group thegoods in these few classes. We take as given the...

Indirect taxation is of no use when nonlinear income taxation is available in aneconomy where everyone has the same taste for goods: an elementary proof ofthis result, due to Atkinson and Stiglitz (1976), is provided.

There has been little empirical work evaluating the sensitivity of fertility tonancial incentives at the household level. We put forward an identicationstrategy that relies on the fact that variation of wages induces variation inbenets and tax credits among \comparable" households. We implement...

A number of countries have recently implemented variants of a negative incometax, to push the less skilled members of the economy into work, or to make workpay in comparison with welfare benefits. In most cases, these measures haveresulted for the concerned groups in a decrease of the tax rates,...