This paper analyzes optimal taxation and provision of public goods in an economy where tax and expenditure decisions are being made by both central and local governments. The main contribution of the paper is to address the implications of informational asymmetries, such that the central...

This paper deals with optimal income and commodity taxation in an economy, where alcohol is an externality-generating consumption good. In our model, alcohol can be bought domestically, imported, or produced illegally. Border trade alone implies an incentive to set the domestic alcohol tax below...

The starting point for this paper is the potential self-control problem underlying the consumption of unhealthy food. The purpose is to analyze public policies, which are designed to correct for the welfare loss associated with such behavior. Contrary to previous studies, our analysis suggests...

This paper concerns international coordination of environmental taxation. The main purpose is to study the global welfare effects that will arise, if there is an agreement between countries to slightly increase their emission taxes. We show that even if each individual country has chosen its...

This paper analyzes optimal taxation and risk-sharing arrangements in an economy with two levels of government. Both levels provide public goods and finance their expenditures via labor income taxation, where the tax base is responsive to the private agents' labor supply decisions. The...

This paper deals with optimal income and commodity taxation in an economy, where alcohol is an externality-generating consumption good. In our model, alcohol can be bought domestically, imported (via border trade) or produced illegally. Border trade implies an incentive to set the domestic...

This paper concerns international coordination of environmental taxation.The main contribution of the paper is to provide a frame-work for dynamiccost benefit analysis of environmental tax reforms in a global economy withtransboundary environmental problems. We show that the welfare effects...

This paper concerns international coordination of environmental taxation. The main contribution of the paper is to provide a frame-work for dynamic cost benefit analysis of environmental tax reforms in a global economy with transboundary environmental problems. We show that the welfare effects...

Recent empirical evidence suggests that between-country social comparisons have become more important over time. This paper analyzes optimal income taxation in a multi-country economy, where consumers derive utility from their relative consumption compared with both other domestic residents and...

Much evidence suggests that between-country social comparisons have become more important over time due to globalization. This paper analyzes optimal income taxation in a multi-country economy, where consumers derive utility from their relative consumption compared with both other domestic...