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Using a collective model of consumption, we characterize optimal commodity taxes aimed at targeting specific individuals within the household. The main message is that distortionary indirect taxation can circumvent the agency problem of the household. Essentially, taxation should discourage less...
Persistent link: https://www.econbiz.de/10009643053
We examine the relative merits of targeting children within the household through price subsidies and cash transfers. To do so, we model the behavior of a household composed of one adult and one child. We then show that 'favorable' distortions from price subsidies may allow redistributing toward...
Persistent link: https://www.econbiz.de/10009643054
We extend the collective model of household consumption to account explicitly for child welfare and economies of scale. Each household member is characterized by specific prefer- ences and the (unspecified) allocation process is assumed to be efficient. Following the principle of the Rothbarth...
Persistent link: https://www.econbiz.de/10009643056
When the number of players is small in a weighted majority voting game, it can occur that one of the players has no influence on the result of the vote, in spite of a strictly positive weight. Such a player is called a “dummy” player in game theory. The purpose of this paper is to...
Persistent link: https://www.econbiz.de/10009650702
In this paper we analyze the fairness of the 2007 reform proposal concerning the apportionment of the seats between the regions for the Italian Senate. Theory of power indices is used to compare the actual case with the proposed one. Two scenarios are proposed, senators belonging to the same...
Persistent link: https://www.econbiz.de/10009650703
Italy has the lowest labor force participation of women among OECD countries. Moreover, the participation rate of married women is positively correlated to their husbands' income. We show that a high tax schedule together with tax credits and transfers raise the burden of two-earner house-...
Persistent link: https://www.econbiz.de/10009650704
This paper proposes a two-regime Bounce-Back Function augmented Self-Exciting Threshold AutoRegression (SETAR) which allows for various shapes of recoveries from the recession regime. It relies on the bounce-back effects first analyzed in a Markov-Switching setup by Kim, Morley and Piger [2005]...
Persistent link: https://www.econbiz.de/10009650705
In the United States, the president is elected by the Electoral Col- lege (EC) and not directly by individual voters. This can give rise to a so-called referendum paradox in which one candidate receives more popular votes than any other, but this candidate is not elected. The 2000 election is an...
Persistent link: https://www.econbiz.de/10009650706