Within a two-country model with involuntary unemployment, this paper investigatescorporate income taxation under separate accounting versus formula apportionment. Incontrast to separate accounting, under formula apportionment the corporate tax policy causesa fiscal externality which goes back to...

We analyze the rise and decline of the steel and mining industries in the regionsof Saarland, Lorraine und Luxemburg over a long period, from the mid-19th century to 2003.Our main focus in on the period of structural decline in these industries after the secondworld war. Dierences in the...

Tax competition within the EU is fiercer than in the rest of the OECD with tax rates fallingrapidly. This paper analyzes tax responses of EU-15 countries to corporate tax changes in theEU-10 new member states as a function of their proximity to these new member states. Theaverage corporate tax...

We analyze the two goals behind the European Bologna Process of increasing student mobility: enabling graduates to develop multi-cultural skills and increasing the quality of universities. We isolate three effects: 1) a competition effect that raises quality; 2) a free rider effect that lowers...

The paper confronts different aspects of decentralization: fiscal decentralization, postconstitutionalregulatory decentralization, and constitutional decentralization – using a singledataset from Russian Federation of the Yeltsin period as a politically asymmetric country anda variety of...

The success of the flat rate tax in Eastern Europe suggests that this concept could also be amodel for the welfare states of Western Europe. The present paper uses a simulation modelto analyse the effects of revenue neutral flat rate tax reforms on equity and efficiency for thecase of Germany...

We propose and apply a new approach for analyzing the effects of fiscal policyusing vector autoregressions. Unlike most of the previous literature this approachdoes not require that the contemporaneous reaction of some variables to fiscalpolicy shocks be set to zero or need additional...

Several countries have recently abolished or significantly reduced their taxes on bequests.Bequest taxes, on the other hand, were among the first to be introduced when modernsystems of taxation were developed at the end of the nineteenth century. We propose anexplanation for these facts which is...

In a recent paper Mujumder (2004, Economics Letters) argued that only if the industry is a monopoly, we could be certain that the government could use profit tax to make up any shortfall in tariff revenue and also make the consumers and producers better off. We show that this result is not...